“Booster” or “Obstacle”: Can digital transformation improve energy efficiency? Firm-level evidence from China

To identify the influence of digital transformation on energy consumption, this paper introduces digitalization and energy elements into the multi-sector energy efficiency analysis model. Furthermore, this paper empirically tests the influence of digital transformation on energy efficiency from the micro level. The results show that the digital transformation indeed improves the enterprises energy efficiency, in which enterprises with higher energy efficiency are more affected. The improvement effect of digital transformation on enterprise energy efficiency continues to increase over time. In comparison, digital transformation shows more effective improvement effect on energy efficiency in enterprises that substantive transformation priority, with same group and maturity stage. Mechanism analysis shows that digital transformation can improve the energy efficiency of enterprises by reducing costs, increasing income, improving production efficiency and promoting technological innovation. In addition, the digital inclusive finance, government subsidies, intellectual property protection and service industry opening show positive regulatory effects. This paper proposes that, with the goal of peak carbon dioxide emissions and carbon neutrality, enterprises should actively increase digital investment and strengthen digital management of energy utilization.