The digital economy and rural household energy consumption in China

Energy transition constitutes a critical pillar of sustainable development. The digital economy enhances rural households’ access to advanced energy and critical information for the energy transition. Using household-level survey data from rural China, this study examines the impact of the digital economy on rural household energy consumption. We find that the digital economy significantly increases household energy consumption diversity. This result remains robust after addressing potential endogeneity through an instrumental variable measured by gigabit fiber-optic internet penetration. Furthermore, the digital economy facilitates the energy transition by promoting the adoption of both transitional and advanced energy while reducing reliance on primitive energy. Mechanically, the digital economy facilitates rural household energy transition by increasing access to digital credit, raising energy cognition, and augmenting social capital. Heterogeneity analysis reveals that the impact of the digital economy on energy consumption is more pronounced for low-income households than for their high-income households. Consequently, future policies should prioritize promoting rural digitalization, advancing digital credit services, encouraging the adoption of advanced energy, increasing engagement from social organizations, and formulating differentiated energy policies to support low-income populations.