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How the digital economy drives energy efficiency in China: a re-examination based on the Environmental Kuznets Curve

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  • Qiang Ma
  • Qiu Li
  • Chang Ma

Abstract

The digital economy has become important in the world’s major economies. Improving energy efficiency is the key to achieving stable and sustainable economic growth and carbon emissions reduction. However, the impact of the digital economy on energy efficiency remains unclear. Accordingly, this study examines the relationship between the digital economy and energy efficiency from the Environmental Kuznets Curve (EKC) perspective. In doing so, this study confirms that the digital economy follows the EKC in energy utilization efficiency, and there is a U-shaped relationship between the digital economy and energy efficiency, although this relationship differs from one region to another. This study also discusses the moderating effects of environmental regulation and innovation capability in this U-shaped relationship, confirming that they have a moderating effect on this relationship, reducing the inflection point of the U-shaped relationship, and reducing the negative influence of the digital economy on the energy efficiency and enhancing the positive impact. This study can serve as a reference for policymakers and professionals in emerging economies, helping them achieve a win-win situation for economic development and reducing carbon emissions.

Suggested Citation

  • Qiang Ma & Qiu Li & Chang Ma, 2023. "How the digital economy drives energy efficiency in China: a re-examination based on the Environmental Kuznets Curve," Economic Research-Ekonomska Istraživanja, Taylor & Francis Journals, vol. 36(2), pages 2170903-217, July.
    • Handle: RePEc:taf:reroxx:v:36:y:2023:i:2:p:2170903
    DOI: 10.1080/1331677X.2023.2170903
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