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Digital Economy and Energy Intensity: The Light and Dark Side

Author

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  • Zheng-Yuan Yang

    (School of Marxism, Fudan University, Shanghai, China)

  • Lei Ye

    (School of Marxism, Fudan University, Shanghai, China)

Abstract

The digital economy exerts both positive and negative influences on urban sustainable development, yet there is a notable gap in the existing research concerning its impact on energy intensity and the underlying mechanisms. this study pioneers the investigation of a nonlinear relationship between the digital economy and energy intensity, revealing a significant inverted U-shaped relationship. Specifically, we observe a noteworthy reduction in energy intensity when the digital economy index surpasses 0.286. Our empirical findings indicate that the digital economy not only directly influences energy intensity but also exerts an indirect impact through initiatives such as the promotion of green innovation and the agglomeration of high-tech industries. Importantly, the promotional effects of the digital economy exhibit heterogeneity with respect to geographical location, resource endowment, and urban scale. This paper contributes to the theoretical understanding of information technology in urban green development by analyzing the mechanisms of the digital economy at the urban level and its intricate impact on energy intensity.

Suggested Citation

  • Zheng-Yuan Yang & Lei Ye, 2024. "Digital Economy and Energy Intensity: The Light and Dark Side," Review of Economic Assessment, Anser Press, vol. 3(4), pages 70-92, December.
    • Handle: RePEc:bba:j00010:v:3:y:2024:i:4:p:70-92:d:407
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    References listed on IDEAS

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    3. Anu, & Singh, Amit Kumar & Raza, Syed Ali & Nakonieczny, Joanna & Shahzad, Umer, 2023. "Role of financial inclusion, green innovation, and energy efficiency for environmental performance? Evidence from developed and emerging economies in the lens of sustainable development," Structural Change and Economic Dynamics, Elsevier, vol. 64(C), pages 213-224.
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