Digitalization and electricity consumption: Does internet development contribute to the reduction in electricity intensity in China?

Abstract

The coming of the internet era has converted traditional energy utilization methods, and with the emergence of new internet-based technologies, the internet is likely to exert a greater influence on reducing electricity intensity. The impact mechanism of the internet development level on electricity intensity are analyzed and a sample of 30 Chinese provinces from 2006 to 2018 are used. The dynamic panel threshold regression model, intermediary effect model and spatial measurement model are used to examine the direct and indirect influence mechanisms of the effect on the internet development level on electricity intensity as well as the possible spatial spillover and threshold effects stemming from this process. The following conclusions are drawn. i) the level of internet development plays a significant negative role on electricity intensity, ii) internet development has a negative spatial spillover effect on electricity intensity, and iii) the effect of internet development on electricity intensity has a significant threshold effect. In different stages of financial development, education level, industrial structure and technological development, internet development can have different effects on electricity intensity; that is, the impact of internet development on electricity intensity is nonlinear. It is worth noting that internet development affects energy intensity through financial development, education level, industrial structure and technological development.