Is the digital economy driving clean energy development? -New evidence from 276 cities in China

The digital economy is becoming increasingly important in the field of carbon governance. However, there is little literature examining the relationship between the digital economy and clean energy development. This paper aims to fill this gap by exploring the relationship between the digital economy and clean energy and its spatial effects. We explored the effects of the digital economy using adouble fixed effects model and a spatial econometric model using 276 cities in China from 2011 to 2019 as the original data. We find that the digital economy can drive clean energy development. Technological innovation and city bank loans play an important mediating role in this. Second, we find that market-driven amplifies the positive effects of the digital economy compared with government intervention, and the effects of the digital economy are different under different regions. Finally, we find that the digital economy can drive clean energy not only in local cities, but also indirectly in neighboring cities. These facts suggest that the digital economy is an important way to drive clean energy development and thus effectively achieve sustainable development. Our study provides new ideas for building digital economy and clean energy development in emerging developing countries such as China.