The impact of digital economy on energy transition across the globe: The mediating role of government governance

Considering the potential relationship between the digital economy and energy transition, we investigate the effect of the digital economy on the structure of renewable energy consumption and generation by employing panel data of 72 countries covering the period 2003–2019. We also investigate the me...

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Published inRenewable & sustainable energy reviews Vol. 166; p. 112620
Main Authors Shahbaz, Muhammad, Wang, Jianda, Dong, Kangyin, Zhao, Jun
Format Journal Article
LanguageEnglish
Published Elsevier Ltd 01.09.2022
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Abstract Considering the potential relationship between the digital economy and energy transition, we investigate the effect of the digital economy on the structure of renewable energy consumption and generation by employing panel data of 72 countries covering the period 2003–2019. We also investigate the mediating effect of government governance, asymmetry, and heterogeneity between the digital economy and energy transition, and draw several results. First, the digital economy positively affects energy transition; in other words, a 1% increase in the digital economy will boost the renewable energy consumption structure by 0.021% and renewable energy generation structure by 0.106%. Moreover, the digital economy stimulates the renewable energy transition by promoting governments’ governance capabilities. In addition, according to the asymmetric check, the positive effect of the digital economy on energy transition is stronger at higher quantiles. Finally, heterogeneity results indicate that the digital economy positively contributes to renewable energy transition in the high-income countries, and there are regional heterogeneities in the impact of the digital economy on energy transition. These research findings offer valuable policy implications for governments and scholars. •This paper explores the effects of the digital economy on energy transition.•We further discuss the mediating mechanism, asymmetry, and heterogeneity.•The digital economy positively affects the transition of renewable energy consumption and generation.•Government governance has a positive impact on the relationship between the digital economy and energy transition.•The impact of the digital economy on energy transition is asymmetric and heterogeneous.
AbstractList Considering the potential relationship between the digital economy and energy transition, we investigate the effect of the digital economy on the structure of renewable energy consumption and generation by employing panel data of 72 countries covering the period 2003–2019. We also investigate the mediating effect of government governance, asymmetry, and heterogeneity between the digital economy and energy transition, and draw several results. First, the digital economy positively affects energy transition; in other words, a 1% increase in the digital economy will boost the renewable energy consumption structure by 0.021% and renewable energy generation structure by 0.106%. Moreover, the digital economy stimulates the renewable energy transition by promoting governments’ governance capabilities. In addition, according to the asymmetric check, the positive effect of the digital economy on energy transition is stronger at higher quantiles. Finally, heterogeneity results indicate that the digital economy positively contributes to renewable energy transition in the high-income countries, and there are regional heterogeneities in the impact of the digital economy on energy transition. These research findings offer valuable policy implications for governments and scholars. •This paper explores the effects of the digital economy on energy transition.•We further discuss the mediating mechanism, asymmetry, and heterogeneity.•The digital economy positively affects the transition of renewable energy consumption and generation.•Government governance has a positive impact on the relationship between the digital economy and energy transition.•The impact of the digital economy on energy transition is asymmetric and heterogeneous.
ArticleNumber 112620
Author Zhao, Jun
Dong, Kangyin
Wang, Jianda
Shahbaz, Muhammad
Author_xml – sequence: 1
  givenname: Muhammad
  surname: Shahbaz
  fullname: Shahbaz, Muhammad
  email: muhdshahbaz77@gmail.com
  organization: Department of International Trade and Finance, School of Management and Economics, Beijing Institute of Technology, Beijing, 100081, China
– sequence: 2
  givenname: Jianda
  surname: Wang
  fullname: Wang, Jianda
  email: wangjd1993@163.com
  organization: School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China
– sequence: 3
  givenname: Kangyin
  orcidid: 0000-0002-5776-1498
  surname: Dong
  fullname: Dong, Kangyin
  email: dongkangyin@uibe.edu.cn
  organization: School of International Trade and Economics, University of International Business and Economics, Beijing, 100029, China
– sequence: 4
  givenname: Jun
  surname: Zhao
  fullname: Zhao, Jun
  email: zhaojun4768@163.com
  organization: The College of Economics and Management, Beijing University of Chemical Technology, Beijing, 100029, China
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Snippet Considering the potential relationship between the digital economy and energy transition, we investigate the effect of the digital economy on the structure of...
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SubjectTerms Digital economy
Energy transition
Government governance
Renewable energy consumption
Renewable energy generation
Title The impact of digital economy on energy transition across the globe: The mediating role of government governance
URI https://dx.doi.org/10.1016/j.rser.2022.112620
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