Revealing the multiple impact mechanism of digital economy on renewable energy development in China

The digital economy (DE) is a crucial support for renewable energy (RE) projects in China, aiding efforts to reduce dependence on fossil fuels. Our study observes 30 provincial-level administrative regions in China from 2011 to 2020 and employs a panel-corrected standard error regression model to explore the relationship between DE and RE development in China. Additionally, we explore the specific mechanisms underlying this relationship. Our findings reveal that the DE plays a crucial role in expediting the progress of RE development, displaying significant heterogeneity. Our mechanism analysis finds that human capital does not mediate the relationship between the DE and RE development, while physical capital acts as a positive mediator. Moreover, we find that government energy governance initiatives do not effectively moderate the positive impact of the DE on RE development, while deeper marketization negatively moderates the relationship. Finally, our study demonstrates that DE has positive spatial spillover effects, while boosting RE development in local and neighboring regions. Our study offers valuable insights for policymakers on how the DE can promote the development of RE in China.