Digitalization and energy-saving and emission reduction in Chinese cities: Synergy between industrialization and digitalization

In the digital era, enterprises actively use digital technology to enable resource conservation and pollution reduction, which has important practical significance. However, the existing research has not fully clarified the link between digitalization and energy-saving and emission reduction. This paper measures the digital development level and energy-saving and emission reduction performance (EEP) of 271 Chinese cities from 2003 to 2019 and empirically explores the impact of digitalization on EEP. The empirical results are: (1) digitalization can significantly improve EEP in Chinese cities, and become a new driving force to save energy and reduce emissions in the new era. After solving the endogeneity problems and replacing the explained variables, the conclusion remains robust. (2) The relationship between digitalization and EEP has significant spatiotemporal heterogeneity. Digitalization helps to promote EEP in China's eastern cities, but it has not shown a positive effect in western cities. The positive effect of digitalization began to emerge after 2011. (3) There is a synergy between digitalization and industrialization, which enables cities to save energy and reduce emissions. This study helps clarify the relationship between digitalization and EEP, which provides important insights into how digitalization can empower cities’ energy-saving and emission reduction.