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 mediating effect of gov-ernment 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.

Automated summary

The digital economy has a positive impact on energy transition, promoting the development of the consumption and generation structure of renewable energy. It stimulates energy transition by enhancing government governance capabilities and has a stronger positive effect in high-income countries.