Pursuing a sustainable economy: how does energy digitalization promote green total factor productivity?
Year: 2026
Type: article
Abstract: This study examines whether and how energy digitalization improves green total factor productivity (GTFP) using panel data for 284 Chinese cities from 2012 to 2024. We construct a city-level energy digitalization index by the entropy method and employ a system generalized method of moments estimator to address the relationship between energy digitalization and GTFP. The results show that energy digitalization significantly promotes GTFP. Mechanism analyses indicate that this effect operates through improved energy efficiency, reduced energy intensity, better energy supply–demand matching, and accelerated renewable energy development. Heterogeneity analyses further reveal that the positive effect is stronger in cities with better infrastructure, higher human capital, and stronger research capacity. In addition, the marginal effect of energy digitalization declines when complementary conditions remain unchanged but increases when these conditions improve. These findings provide new evidence on the role of energy digitalization in urban sustainable development and offer policy implications for China’s green transition.
Source: China Economic Journal
Authors: Haotian Zhang, Congyu Zhao, Deyu Zhu
Language: English
Subfield: Economics and Econometrics
Domain: Social Sciences
Open Access status: green
OpenAlex ID: W7167212935