Influence of Digital Economy on Urban Energy Efficiency in China

The digital economy (DE) is characterized by invention, low energy consumption, cross-sector integration, and open sharing. It can effectively enhance social production methods, influence consumer behavior, and provide new pathways to enhance total factor energy efficiency (TFEE). This paper studies 280 Chinese cities, employing the entropy method and data envelopment analysis (DEA) model to evaluate and analyze urban DE and TFEE. It also constructs a system generalized method of moments model (SGMM model) and a threshold regression model (TR model) to examine the impact of the DE on TFEE in China. The main study findings include the following: (1) The regression results of the SGMM model indicate that the effect of DE on TFEE in Chinese cities shows a U-shaped trend. (2) The regression results of the TR model further confirm a U-shaped association connecting DE and TFEE, with the threshold estimated at 0.304. (3) The economic factors and industrial structure have a major impact on inhibiting the improvement of TFEE, whereas technological advancements and environmental regulations significantly facilitate its improvement.