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How technological and regulatory factors shape the impact of supply chain digitalization on energy utilization efficiency

Author

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  • Huang, Minmin
  • Hu, Jin
  • Hu, Mingjun
  • Irfan, Muhammad
  • Wu, Kaiya

Abstract

This study investigates the dynamic nexus between supply chain digitalization (SCD) and energy utilization efficiency (EUE) as a key pathway to improving energy resilience in urban China. Utilizing a Difference-in-Differences (DID) econometric approach on panel data from 276 cities spanning 2006 to 2021, our analysis reveals that SCD significantly enhances EUE through multiple channels: governmental support for innovation, advancements in green technological development, and stimulation of entrepreneurial ecosystems. The study finds that cities with robust technological infrastructures, diversified economic bases, and excellent business environment experience more pronounced efficiency gains, while regions with stringent environmental regulations show a “squeeze effect” that limits digitalization’s positive impact on energy performance. These findings underscore the need for adaptive, policy-driven frameworks that harmonize digital transformation with sustainable energy strategies, offering actionable insights for policymakers and stakeholders aiming to bolster energy resilience and secure energy supply chains.

Suggested Citation

  • Huang, Minmin & Hu, Jin & Hu, Mingjun & Irfan, Muhammad & Wu, Kaiya, 2026. "How technological and regulatory factors shape the impact of supply chain digitalization on energy utilization efficiency," Economic Analysis and Policy, Elsevier, vol. 89(C), pages 663-680.
    • Handle: RePEc:eee:ecanpo:v:89:y:2026:i:c:p:663-680
    DOI: 10.1016/j.eap.2025.12.026
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    JEL classification:

    • O33 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Technological Change: Choices and Consequences; Diffusion Processes
    • Q58 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Government Policy
    • L23 - Industrial Organization - - Firm Objectives, Organization, and Behavior - - - Organization of Production
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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