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Government digital transformation for sustainable development: How e-government initiatives enhance total factor energy efficiency

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  • Huang, Xin
  • Hu, Yao
  • Zhang, Fushun
  • Li, Tianren

Abstract

This study investigates whether digital transformation in government serves as a key catalyst for enhancing energy coordination efficiency in the contemporary era. Leveraging China's Intelligent E-Government Pilot Program as a quasi-natural experiment, we employed a difference-in-differences (DID) approach to analyze data from 282 prefecture-level cities between 2006 and 2021. Our investigation revealed three key findings. First, digital transformation in government significantly enhanced regional total factor energy efficiency (TFEE), with results remaining robust across multiple specification tests. The improvement operated through three primary mechanisms: enhanced industrial agglomeration, optimized market resource allocation, and refined policy environment. Second, the effectiveness of digital transformation varied significantly with local conditions. The policy showed greater impact in cities with larger populations and higher economic development levels, while its effectiveness was contingent upon governmental environmental commitment and institutional integrity. Third, we identify notable synergies between the pilot program and other digital economy initiatives, particularly in traditional energy distribution policies. These findings inform both theory and policy in digital governance and energy efficiency. It offers valuable insights for policymakers seeking to leverage digital transformation for improved energy coordination and environmental sustainability.

Suggested Citation

  • Huang, Xin & Hu, Yao & Zhang, Fushun & Li, Tianren, 2025. "Government digital transformation for sustainable development: How e-government initiatives enhance total factor energy efficiency," Research in International Business and Finance, Elsevier, vol. 80(C).
    • Handle: RePEc:eee:riibaf:v:80:y:2025:i:c:s027553192500340x
    DOI: 10.1016/j.ribaf.2025.103084
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    1. Wang, Lu & Li, Xinting, 2026. "Government digitalisation initiatives and corporate green investment," Finance Research Letters, Elsevier, vol. 88(C).

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    JEL classification:

    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment
    • Q49 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Other

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