IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v17y2025i15p6755-d1709463.html
   My bibliography  Save this article

Integrating the IoT and New Energy to Promote a Sustainable Low-Carbon Economy

Author

Listed:
  • Yan Chen

    (School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China)

  • Yuqi Hou

    (School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China)

  • Jiayi Lyu

    (School of Economics and Management, Beijing University of Posts and Telecommunications, Beijing 100876, China)

Abstract

This study explores the complex interaction between the Internet of Things (IoT) and the new energy sector and analyzes how their integration can catalyze a transition toward a sustainable low-carbon economy. Through the full-sample and rolling sub-sample methods, we empirically examine the dynamic interrelationship between China’s IoT index (IoT) and the New Energy Index (NEI). Quantitative analysis reveals significant time-varying characteristics and bidirectional causal complexity in the interaction between the IoT and new energy. The IoT has a dual-edged impact on the development of new sources of energy. In the long run, the IoT plays a dominant role in incentivizing new energy, helping to enhance its stability and economic value. However, during stages characterized by technological bottlenecks or resource competition, the high energy consumption of IoT infrastructure may suppress the investment returns of new energy. Simultaneously, new energy has both positive and negative impacts on the IoT. On the one hand, new energy provides low-cost, sustainable power to support the IoT, driving the construction of the IoT ecosystem. On the other hand, it may threaten the continuity of IoT power supply, and the complexity of standardization and regulation in the sector may constrain the development of the IoT. This study provides a fresh perspective on promoting the integration of digital technology and green energy, uncovering nonlinear trade-offs between innovation-driven growth and carbon reduction goals, and offering policy insights for cross-sectoral collaboration to achieve sustainability.

Suggested Citation

  • Yan Chen & Yuqi Hou & Jiayi Lyu, 2025. "Integrating the IoT and New Energy to Promote a Sustainable Low-Carbon Economy," Sustainability, MDPI, vol. 17(15), pages 1-21, July.
    • Handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:6755-:d:1709463
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/17/15/6755/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/17/15/6755/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhang, Haoran & Yu, Xiaohong & Gao, Zixuan, 2025. "Is the end of AI in photovoltaic power? Evidence from China," Energy Economics, Elsevier, vol. 145(C).
    2. Mansouri, Seyed Amir & Rezaee Jordehi, Ahmad & Marzband, Mousa & Tostado-Véliz, Marcos & Jurado, Francisco & Aguado, José A., 2023. "An IoT-enabled hierarchical decentralized framework for multi-energy microgrids market management in the presence of smart prosumers using a deep learning-based forecaster," Applied Energy, Elsevier, vol. 333(C).
    3. Chen, Yan & Zhang, Ruiqian & Lyu, Jiayi & Hou, Yuqi, 2024. "AI and Nuclear: A perfect intersection of danger and potential?," Energy Economics, Elsevier, vol. 133(C).
    4. Andrews, Donald W K & Ploberger, Werner, 1994. "Optimal Tests When a Nuisance Parameter Is Present Only under the Alternative," Econometrica, Econometric Society, vol. 62(6), pages 1383-1414, November.
    5. Koot, Martijn & Wijnhoven, Fons, 2021. "Usage impact on data center electricity needs: A system dynamic forecasting model," Applied Energy, Elsevier, vol. 291(C).
    6. Balcilar, Mehmet & Ozdemir, Zeynel Abidin & Arslanturk, Yalcin, 2010. "Economic growth and energy consumption causal nexus viewed through a bootstrap rolling window," Energy Economics, Elsevier, vol. 32(6), pages 1398-1410, November.
    7. Bertoldi, Paolo & Mosconi, Rocco, 2020. "Do energy efficiency policies save energy? A new approach based on energy policy indicators (in the EU Member States)," Energy Policy, Elsevier, vol. 139(C).
    8. Zhao, Jun & Dong, Kangyin & Dong, Xiucheng & Shahbaz, Muhammad, 2022. "How renewable energy alleviate energy poverty? A global analysis," Renewable Energy, Elsevier, vol. 186(C), pages 299-311.
    9. Ghazi Shukur & Panagiotis Mantalos, 2000. "A simple investigation of the Granger-causality test in integrated-cointegrated VAR systems," Journal of Applied Statistics, Taylor & Francis Journals, vol. 27(8), pages 1021-1031.
    10. Donald W. K. Andrews, 2003. "Tests for Parameter Instability and Structural Change with Unknown Change Point: A Corrigendum," Econometrica, Econometric Society, vol. 71(1), pages 395-397, January.
    11. Chao Li & Wenyu Lao, 2025. "Internet of Things’ sustainability effects: quantile and temporal insights," Palgrave Communications, Palgrave Macmillan, vol. 12(1), pages 1-22, December.
    12. Naser Hossein Motlagh & Mahsa Mohammadrezaei & Julian Hunt & Behnam Zakeri, 2020. "Internet of Things (IoT) and the Energy Sector," Energies, MDPI, vol. 13(2), pages 1-27, January.
    13. Toda, Hiro Y. & Phillips, Peter C. B., 1993. "The spurious effect of unit roots on vector autoregressions : An analytical study," Journal of Econometrics, Elsevier, vol. 59(3), pages 229-255, October.
    14. Marcel Papert & Alexander Pflaum, 2017. "Development of an Ecosystem Model for the Realization of Internet of Things (IoT) Services in Supply Chain Management," Electronic Markets, Springer;IIM University of St. Gallen, vol. 27(2), pages 175-189, May.
    15. Su, Chi-Wei & Qin, Meng & Tao, Ran & Shao, Xue-Feng & Albu, Lucian Liviu & Umar, Muhammad, 2020. "Can Bitcoin hedge the risks of geopolitical events?," Technological Forecasting and Social Change, Elsevier, vol. 159(C).
    16. Xia, Yan & Kong, Yishu & Ji, Qiang & Zhang, Dayong, 2019. "Impacts of China-US trade conflicts on the energy sector," China Economic Review, Elsevier, vol. 58(C).
    17. Khan, Khalid & Su, Chi Wei & Rehman, Ashfaq U. & Ullah, Rahman, 2022. "Is technological innovation a driver of renewable energy?," Technology in Society, Elsevier, vol. 70(C).
    18. Shivaji Karad & Ritula Thakur, 2021. "Efficient monitoring and control of wind energy conversion systems using Internet of things (IoT): a comprehensive review," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 23(10), pages 14197-14214, October.
    19. Amir Mosavi & Mohsen Salimi & Sina Faizollahzadeh Ardabili & Timon Rabczuk & Shahaboddin Shamshirband & Annamaria R. Varkonyi-Koczy, 2019. "State of the Art of Machine Learning Models in Energy Systems, a Systematic Review," Energies, MDPI, vol. 12(7), pages 1-42, April.
    20. Sims, Christopher A & Stock, James H & Watson, Mark W, 1990. "Inference in Linear Time Series Models with Some Unit Roots," Econometrica, Econometric Society, vol. 58(1), pages 113-144, January.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Chen, Yan & Zhang, Ruiqian & Lyu, Jiayi & Hou, Yuqi, 2024. "AI and Nuclear: A perfect intersection of danger and potential?," Energy Economics, Elsevier, vol. 133(C).
    2. Khan, Khalid & Khurshid, Adnan & Cifuentes-Faura, Javier & Xianjun, Dai, 2024. "Does renewable energy development enhance energy security?," Utilities Policy, Elsevier, vol. 87(C).
    3. Kai-Hua Wang & Jia-Min Kan & Cui-Feng Jiang & Chi-Wei Su, 2022. "Is Geopolitical Risk Powerful Enough to Affect Carbon Dioxide Emissions? Evidence from China," Sustainability, MDPI, vol. 14(13), pages 1-16, June.
    4. Zizhe Du & Chao Chen, 2025. "AI vs. ESG? Uncovering a Bidirectional Struggle in China’s Sustainable Finance," Sustainability, MDPI, vol. 17(9), pages 1-23, May.
    5. Liu, Tie-Ying & Su, Chi-Wei, 2021. "Is transportation improving urbanization in China?," Socio-Economic Planning Sciences, Elsevier, vol. 77(C).
    6. Xiao-lin Li & Mehmet Balcilar & Rangan Gupta & Tsangyao Chang, 2016. "The Causal Relationship Between Economic Policy Uncertainty and Stock Returns in China and India: Evidence from a Bootstrap Rolling Window Approach," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(3), pages 674-689, March.
    7. Qian Zhao & Chi-Wei Su & Jun-Mo Guo, 2024. "Does Technological Innovation Promote Renewable Energy Investment?," SAGE Open, , vol. 14(1), pages 21582440241, February.
    8. Zhang, Xiaojing & Chang, Hsu-Ling & Su, Chi-Wei & Qin, Meng & Umar, Muhammad, 2024. "Exploring the dynamic interaction between geopolitical risks and lithium prices: A time-varying analysis," Resources Policy, Elsevier, vol. 90(C).
    9. Yingying Xu & Zhi-Xin Liu & Hsu-Ling Chang & Adelina Dumitrescu Peculea & Chi-Wei Su, 2017. "Does self-fulfilment of the inflation expectation exist?," Applied Economics, Taylor & Francis Journals, vol. 49(11), pages 1098-1113, March.
    10. Qian Zhao & Chi-Wei Su, 2023. "The Nexus Between Air Pollution and Outward Foreign Direct Investment," SAGE Open, , vol. 13(1), pages 21582440221, January.
    11. Su, Chi-Wei & Wang, Xiao-Qing & Tao, Ran & Chang, Hsu-Ling, 2019. "Does money supply drive housing prices in China?," International Review of Economics & Finance, Elsevier, vol. 60(C), pages 85-94.
    12. Wang, Kai-Hua & Liu, Lu & Li, Xin & Oana-Ramona, Lobonţ, 2022. "Do oil price shocks drive unemployment? Evidence from Russia and Canada," Energy, Elsevier, vol. 253(C).
    13. Yumei Guan & Chiwei Su & Tao Guan, 2025. "The Dynamic Bidirectional Causality Between Carbon Pricing and Green Technology Innovation in China: A Sub-Sample Time-Varying Approach," Sustainability, MDPI, vol. 17(12), pages 1-23, June.
    14. Khalid Khan & Jiluo Sun & Sinem Derindere Koseoglu & Ashfaq U. Rehman, 2021. "Revisiting Bitcoin Price Behavior Under Global Economic Uncertainty," SAGE Open, , vol. 11(3), pages 21582440211, August.
    15. Chi-Wei Su & Jiao-Jiao Fan & Hsu-Ling Chang & Xiao-Lin Li, 2016. "Is there Causal Relationship between Money Supply Growth and Inflation in China? Evidence from Quantity Theory of Money," Review of Development Economics, Wiley Blackwell, vol. 20(3), pages 702-719, August.
    16. Liu, Guanchun & He, Lei & Yue, Yiding & Wang, Jiying, 2014. "The linkage between insurance activity and banking credit: Some evidence from dynamic analysis," The North American Journal of Economics and Finance, Elsevier, vol. 29(C), pages 239-265.
    17. Zhao, Qian & Qin, Chuan & Ding, Longfei & Cheng, Ying-Yue & Vătavu, Sorana, 2023. "Can green bond improve the investment efficiency of renewable energy?," Energy Economics, Elsevier, vol. 127(PB).
    18. Cai, Yifei, 2016. "短期资本流动、经济政策不确定性与恐慌指数—基于时变分析框架下的研究 [Short-term Capital Flow, Economic Policy Uncertainty and VIX—Evidence from a Time-varying Analysis Framework]," MPRA Paper 73213, University Library of Munich, Germany.
    19. David Su & Xin Li & Oana-Ramona Lobonþ & Yanping Zhao, 2016. "Economic policy uncertainty and housing returns in Germany: Evidence from a bootstrap rolling window," Zbornik radova Ekonomskog fakulteta u Rijeci/Proceedings of Rijeka Faculty of Economics, University of Rijeka, Faculty of Economics and Business, vol. 34(1), pages 43-61.
    20. Sun, Yanpeng & Mirza, Nawazish & Qadeer, Abdul & Hsueh, Hsin-Pei, 2021. "Connectedness between oil and agricultural commodity prices during tranquil and volatile period. Is crude oil a victim indeed?," Resources Policy, Elsevier, vol. 72(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:gam:jsusta:v:17:y:2025:i:15:p:6755-:d:1709463. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.