Is the digital economy conducive to the development of renewable energy in Asia?

Abstract

To achieve carbon neutrality targets, Asian countries have formulated renewable energy development strategies, among which digitalization has provided sufficient development impetus for the energy transition. By using the IV-GMM technique, this paper explores the impact of the digital economy on renewable energy generation (REG) in Asian countries from 2003 to 2019, and further investigates the moderating effect of financial development, political stability, and the rule of law. The results indicate that the digital economy has a positive effect on REG. Moreover, financial development, political stability, and the rule of law positively moderate the nexus between the digital economy and REG. In addition, compared to developing Asian countries, the promotion effect of the digital economy on REG is more significant in developed Asian countries. Finally, in terms of regional heterogeneity, the impacts of the digital economy on REG are only significantly positive in East and South Asian countries. Asian countries should actively develop digital industries, build a stable political environment, enhance financial services, and achieve low-carbon energy transition in the region.