Digital economy spillover on energy saving and emission reduction: Evidence from China

Digital economy spillover (DES) measures the real impact of the digital economy. This study analyzes the theoretical mechanism of DES affecting energy saving and emission reduction. Selecting balanced panel data of 30 provinces (autonomous regions and municipalities directly under the Central Government) in China from 2003 to 2022, we constructed a comprehensive DES index and empirically analyzed its impact on energy saving and emission reduction and the mechanism of this impact by fixed effect model. Our results suggest that DES has a significant emission reduction and energy-saving effect. The results of mechanism analysis show that DES can result in energy saving and emission reduction by promoting industrial structure optimization and enhancing technological innovation capacity. In addition, the impact of DES on energy saving and emission reduction is influenced by various factors, such as geographical conditions, the level of economic development, and performance assessment, exhibiting evident heterogeneity.