The role of information and communication technology on green total factor energy efficiency: Does environmental regulation work?

TLDR

China is shifting its focus from rapid economic growth to higher‑quality development. The study tests whether China’s cyberpower and digital China strategies promote sustainable development. The authors construct a provincial ICT development index from penetration, coverage, information resources, and business dimensions, and use 2006‑2017 panel data to examine its direct, moderated, nonlinear, and regional effects on green total factor energy efficiency. ICT development improves green total factor energy efficiency, with the magnitude of the effect moderated by environmental regulation intensity and varying across regions, particularly benefiting the western provinces due to a late‑mover advantage.

Abstract

Abstract China is gradually changing its pursuit of rapid economic growth into a pursuit of economic development quality. In this context, whether “cyberpower” and “digital China” strategies are truly conducive to China's sustainable development still needs to be further tested. This paper constructs China's provincial information and communication technology (ICT) comprehensive development level index from the four dimensions of penetration, coverage, information resources, and business and then innovatively undertakes a theoretical framework integrating ICT, environmental regulations, and green total factor energy efficiency (GTFEE) for the analysis. Using panel data from China's 30 provincial administrative regions from 2006 to 2017, this study explores the direct impact, moderating effect, nonlinear relationship, and regional differences of ICT development on GTFEE. It is indicated that ICT development plays a positive role in promoting GTFEE and that this role is moderated by environmental regulations. The regression results of the dynamic threshold model indicate that diverse environmental regulation intensities lead to different influences of ICT development on GTFEE. Moreover, the impact of ICT development on GTFEE is heterogeneous among different regions. Specifically, the western region may gain more benefits from ICT development by virtue of the late‐mover advantage.