Digital Finance, Industrial Structure, and Total Factor Energy Efficiency: A Study on Moderated Mediation Model with Resource Dependence

Abstract

China’s main energy structure is dominated by coal. The burning of coal is a major source of greenhouse gas emissions, making China the largest carbon emitter. Facing double pressure on ecological protection and economic development, improving energy efficiency is more practical than reducing coal utilization. In this context, digital finance can be a vital engine that supports a transition to a low-carbon economy. Based on panel data for 2011 to 2019 of 30 provinces in China, this study probes the effect of digital finance on the total factor energy efficiency and constructs a moderated mediating effect model to analyze the mechanism of action. The results show that: (1) digital finance is able to improve the total factor energy efficiency, (2) the industrial structure plays a mediating effect, which is regionally heterogeneous, and (3) the above transmission path is affected by the degree of regional resource dependence. With the deepening of resource dependence, the role of digital finance in driving energy efficiency through the industrial structure is enhanced. This research demonstrates the effectiveness of digital finance in energy efficiency improvement and develops ideas for ecological governance and sustainable development.

Environmental regulation, industrial structure and energy efficiency: Evidence from 30 provinces in China

“…Therefore, the industrial structure has a significant economic effect on regulating the relationship between environmental regulation and energy efficiency, but existing research does not include these three factors, and more studies consider more technological effects or innovation effects when analyzing the regulating effect or influencing path of environmental regulation on energy efficiency [ 24 , 41 , 42 ]. Compared with environmental regulation and energy efficiency, the regulatory effect of industrial structure is less considered, and the effect of industrial structure is considered more than other factors affecting energy efficiency, such as the regulatory effect or intermediary effect of industrial structure between digital finance and energy efficiency, financial technology and energy efficiency, and resource endowment and energy efficiency [ 43 – 45 ]. However, in recent years, with the significant role of industrial structure in improving energy efficiency, a few scholars have also begun to consider the regulatory role of industrial structure between environmental regulation and energy efficiency [ 46 ].…”

Impact of Intelligent Manufacturing on Total-Factor Energy Efficiency: Mechanism and Improvement Path

“…With the rapid popularization of modern information technologies such as blockchain and artificial intelligence, the impact of digital technology on TFEE has become the focus. The literature on how digital technology affects TFEE comes from the digital economy [35,36], digital electric power technology [37,38], energy Internet [39], digital finance [40], and digital encryption technology [41], and the economic effect of artificial intelligence technology on energy consumption mode, clean energy production behavior, and logistics chain transportation is explored, but digital technology will improve the TFEE and also lead to more energy consumption, especially the sharp increase in power demand. As a general technological progression, intelligent manufacturing can make decisions faster and more accurately through artificial intelligence, reduce transportation costs and transaction costs, formulate and design more reasonable energy utilization strategies and supervision systems, and thus improve TFEE [42].…”

Financial expenditure, financial friction, and coal consumption for energy efficient environment: Role of financial inclusion

“…Financial inclusion is impacted by various factors, such as the level of financial innovation, poverty rates, stability of the financial system, the overall economy, and the level of financial literacy [4]. In addition, the utilisation of various strategies such as reducing interest rates, implementing conditional low-interest rates, and reinforcing monetary policies through welfare payments have all been associated with achieving significant levels of financial inclusion [5].…”