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Harnessing the Digital Economy for Sustainable Energy Efficiency: An Empirical Analysis of China’s Yangtze River Delta

Author

Listed:
  • Liu Fengqin

    (School of Law, Jiangsu University, Zhenjiang, 212013, China)

  • Kumar Jai

    (School of Management, Jiangsu University, Zhenjiang, 212013, China)

  • Sun Huaping

    (School of Economics and Management, University of Science and Technology Beijing, Beijing, 100083, China)

  • Edziah Bless Kofi

    (College of Management and Economics, Tianjin University, Tianjin, 300072, China)

Abstract

This study investigates the impact of the digital economy on energy efficiency through a combination of theoretical analysis and empirical testing. The research contributes by categorizing the energy value creation process into two stages: the energy input stage and the energy operation stage and by examining both the direct and indirect effects of the digital economy on energy efficiency. Indirect effects are explored through factors such as industrial structure, green innovation, transaction efficiency, and environmental regulation. Using panel data from 41 cities in the Yangtze River Delta region of China, covering the period from 2006 to 2020, the study empirically examines the effects of the digital economy on energy efficiency. The findings emphasize the significant role of the digital economy in enhancing energy efficiency, particularly through upgrading industrial structures, increasing transaction efficiency, and stimulating green innovation. A heterogeneity analysis reveals that the influence of the digital economy on energy efficiency is less pronounced in resource-based cities than in non-resource-based cities. Based on these findings, the study provides targeted policy recommendations to further leverage the digital economy for improving energy efficiency.

Suggested Citation

  • Liu Fengqin & Kumar Jai & Sun Huaping & Edziah Bless Kofi, 2025. "Harnessing the Digital Economy for Sustainable Energy Efficiency: An Empirical Analysis of China’s Yangtze River Delta," Economics - The Open-Access, Open-Assessment Journal, De Gruyter, vol. 19(1), pages 1-15.
    • Handle: RePEc:bpj:econoa:v:19:y:2025:i:1:p:15:n:1001
    DOI: 10.1515/econ-2025-0136
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