Can the digital economy effectively contribute to the clean energy transition? A provincial panel data analysis from China

Abstract

With the rapid growth of the digital economy and the spread of digital technologies, there is a growing interest in the digital transformation of clean energy. Accordingly, this study discusses the impact of digital economy on clean energy transformation from multi-dimensional, multi-level and multi-regional perspective through spatial econometric model based on the panel data of 30 provinces in China from 2000 to 2021. It is empirically demonstrated that the positive effects of digital economy on local clean energy transformation are much greater than those of neighboring areas, which further proves that ecological environment, technological innovation, FDI, financial development, city size and economic growth are also the main action paths for the sustainable development of clean energy transformation. Secondly, when government intervention and market-driven conditions are taken into account, both limit the positive impact of the digital economy on clean energy transformation, but the impact of the digital economy differs across regions. Finally, the digital economy has the largest impact in the western region, the smallest in the eastern region and the second largest in the central region, taking into account the existence of spatial regional heterogeneity. Our research can provide theoretical support for China and other emerging developing countries to promote the deep integration of the digital economy and clean energy, as these facts show that the sustainable development of the digital economy is an important way to promote the transformation of clean energy.