AUTHOR=Wu Hui , Han Mengyu , Shen Yang 

TITLE=Technology-driven energy revolution: the impact of digital technology on energy efficiency and its mechanism

JOURNAL=Frontiers in Energy Research

VOLUME=Volume 11 - 2023

YEAR=2023

URL=https://www.frontiersin.org/journals/energy-research/articles/10.3389/fenrg.2023.1242580

DOI=10.3389/fenrg.2023.1242580

ISSN=2296-598X

ABSTRACT=In the sustainable development framework set out in the 2030 Agenda for Sustainable Development, Goal 7.3 explicitly aims to double the global rate of energy efficiency improvement by 2030. The rapid development of digital technology, along with its universality and penetrative characteristics, has provide a feasible solution for improving energy efficiency and environmental conditions. However, the theoretical understanding of the impact and underlying logic of digital technology on energy efficiency remains unclear. Based on panel data from 30 provinces in mainland China from year 2006 to 2021, this paper adopts the two-way fixed effects model, and investigates the impact of digital technology on energy efficiency and its internal mechanism from the single-factor and total-factor levels. The results show that : (1) Digital technology, represented by industrial robots, significantly improves energy efficiency, whether measured by the energy consumption intensity of GDP or the total-factor energy efficiency estimated using the SBM-GML model. The results still hold even after conducting endogeneity tests and robustness tests. (2) Digital technology can improve energy efficiency by increasing virtual industrial agglomeration and promoting outward foreign direct investment. In addition to promoting the theoretical understanding of the impact of digital technology on energy efficiency and exploring its mechanism, this paper also provides empirical evidence for policy makers and enterprises to formulate effective measures and strategies to improve energy efficiency under the background of digital economy.