The Impact of Digital Economy on Energy Rebound Effect in China

Abstract

The energy rebound effect threatens realizing the energy-saving effect of energy efficiency measures. How the development of the digital economy will affect the energy rebound effect is still being determined. This paper is based on the panel data of 30 provinces in China from 2011 to 2021. A stochastic frontier model of energy demand is built to examine the influence of the digital economy on the energy rebound effect. The findings are as follows: (1) Digital economy significantly promotes the energy rebound effect. The average energy rebound impact is calculated to be 55.1%. (2) Urbanization strengthens the positive effect of the digital economy on the rebound effect. (3) Different provinces experience the rebound effect differently due to the digital economy. The digital economy has a more significant role in fostering the rebound effect in places with higher R&D intensity, lower coal share, and higher secondary sector share. This article argues that we should deepen the energy prices reform, promote sophisticated energy-saving technology development, and promote the energy structure transformation while expanding the digital economy to mitigate the negative impact of the rebound effect effectively.

Keywords: Energy rebound effect, The digital economy, Stochastic frontier analysis, energy efficiency