The Impact of Digital Service Industry on Urban Energy Consumption in China
Juan Liu
College of Business, Jishou University
DOI: https://doi.org/10.59429/esta.v11i3.7449
Keywords: Digital service industry agglomeration; Energy efficiency; Environmental regulation
Abstract
The development of the digital service industry not only fosters new forms of digital industries and creates new drivers for economic growth but also serves as a crucial engine for green and low-carbon urban transformation, offering innovative pathways to improve urban energy efficiency. Using matched data from 280 prefecture-level cities in China, this study empirically examines the relationship between digital service industry agglomeration and urban energy efficiency. The findings reveal that digital service industry agglomeration significantly enhances urban energy efficiency, and this result remains robust even after a series of tests, including the use of instrumental variable methods. Mechanism analysis indicates that both formal and informal environmental regulations play a significant positive moderating role in this process. Furthermore, heterogeneity analysis shows that the impact of digital service industry agglomeration on urban energy efficiency is more pronounced in key cities (provincial capitals and municipalities), non-resource-based cities, and cities located on the southeastern side of the Hu Line. The study concludes that leveraging the energy efficiency gains from digital service industry agglomeration is of great importance for promoting a synergistic transition to digitalization and greening, and for advancing carbon peak and carbon neutrality in a prudent and proactive manner.
References
[1] Sharma, V., Greig, C., & Lant, P. (2021). What is stopping India’s rapid decarbonisation? Examining social factors, speed, and institutions in Odisha.Energy Research & Social Science, 78, 102117.
[2] Csereklyei, Z., Rubio-Varas, M. D. M., & Stern, D. I. (2016). Energy and economic growth: the stylized facts. The Energy Journal, 37(2), 223-256.
[3] Song, M., Peng, L., Shang, Y., & Zhao, X. (2022). Green technology progress and total factor productivity of resource-based enterprises: A perspective of technical compensation of environmental regulation.Technological Forecasting and Social Change, 174, 121276.
[4] Liu, H., Shi, Y., Sun, B., & Yang, X. (2024). Agglomeration of the Digital Services Industry and Digital Transformation: Evidence from China.Emerging Markets Finance and Trade, 60(5), 855-869.
[5] Yang, H., Lu, F., & Zhang, F. (2020). Exploring the effect of producer services agglomeration on China’s energy efficiency under environmental constraints. Journal of Cleaner Production, 263, 121320.
[6] Norton, R. D., & Rees, J. (2007). The product cycle and the spatial decentralization of American manufacturing.Regional Studies, 41(S1), S61-S71.
[7] Criado, J. I., & Gil-Garcia, J. R. (2019). Creating public value through smart technologies and strategies: From digital services to artificial intelligence and beyond. International Journal of Public Sector Management, 32(5), 438-450.
[8] Lv, Y., Chen, W., & Cheng, J. (2020). Effects of urbanization on energy efficiency in China: New evidence from short run and long run efficiency models.Energy Policy, 147, 111858.
[9] Chen, Z., Kahn, M. E., Liu, Y., & Wang, Z. (2018). The consequences of spatially differentiated water pollution regulation in China. Journal of Environmental Economics and Management, 88, 468-485.
[10] Wu, L. B., Yang, M. M., & Sun, K. G. (2022). Impact of public environmental attention on environmental governance of enterprises and local governments.China Popul. Resour. Environ, 32(2), 1-14.