Digital economy and industrial energy efficiency performance: evidence from the city of the Yangtze River Delta in China

Industry dominates energy consumption and carbon emissions in China, and industrial energy efficiency is critical for the achievement of energy transformation and carbon emission reduction. With the rapid development of the digital economy, its impact on energy efficiency is gradually emerging, and it is necessary to clarify the influencing mechanism on industrial energy efficiency. Based on the panel data of industrial sectors in 41 cities in the Yangtze River Delta from 2011 to 2019, the main objectives of this study are to more accurately measure the industrial total factor energy efficiency in each city by using the Super-Dynamic-SBM model. It analyses the influence mechanism of the digital economy and other influencing factors on industrial total factor energy efficiency with different methods. The research results indicate that, first, the total factor energy efficiency of the industrial sector in the Yangtze River Delta urban agglomeration generally showed a steady upward trend. Second, the digital economy and environmental regulation play a significant role in promoting total factor energy efficiency. In addition, industrial energy efficiency and the digital economy show an inverted “U” shaped relationship. With the improvement of the digital economy, its marginal contribution to total factor energy efficiency gradually weakens. Finally, technological progress is an important transmission channel for the impact of the digital economy on total factor energy efficiency.