How does internet development affect energy-saving and emission reduction? Evidence from China

Abstract

With the development of information technology and its innovative applications in the field of environmental protection, the role of the internet in energy conservation and emission reduction has become increasingly prominent. Based on panel data from 30 provinces from 2006 to 2017 and 196 cities from 2011 to 2018 in China, this study utilizes the SBM (Slack-Based Measure) model to evaluate energy saving and emission reduction efficiency. The OLS, Spatial Durbin model, threshold model, mediating effect model, and DID (Difference in Difference) model are employed to study the direct effect, spatial spillover effect, nonlinear relationship, transmission mechanism, and policy effect of internet development on energy saving and emission reduction efficiency. The empirical results indicate that internet development has significantly promoted energy saving and emission reduction efficiency. This conclusion still holds after a series of robustness tests, including IV estimation, and the substitution of dependent and independent variables. The gradual DID model based on the quasi natural experiment of “Broadband China” further proves the causal relationship between internet development and energy saving and emission reduction efficiency. Internet development can improve the latter through technological progress, energy structure, human capital, and openness. Interestingly, the impact of internet development on the energy saving and emission reduction efficiency of adjacent areas also has a significantly positive spatial spillover effect, which still exists under the spatial weight matrix of different distances. There is also solid evidence that the impact of internet development on energy saving and emission reduction efficiency is non-linear under different levels of technological progress, energy structure, human capital, and openness.