Can digital technology innovation promote total factor energy efficiency? Firm-level evidence from China

Abstract

The study is based on panel data of listed manufacturing companies from 2010 to 2022, identifies digital technology innovation (DGTI) by using patent data, uses two-step stochastic frontier with Shepard energy distance function to measure total factor energy efficiency (TFE), and analyzes the impact of DGTI on TFE. Research has found that the larger the scale of DGTI, the more conducive it is to TFE. DGTI can also promote TFE by improving environmental responsibility fulfillment and internal control quality, while, DGTI may hinder TFE by increasing operating costs. In the heterogeneity, DGTI has a stronger promoting effect on the TFE of large-scale firms and state-owned firms. In the central and western regions, DGTI has a U-shaped effect that first inhibits and then promotes TFE. Moreover, intellectual property protection, information infrastructure, and digital industry agglomeration will all promote the positive impact of DGTI on TFE. This study aims to provide implications for improving energy efficiency and promoting digital technology research and development.