Broadening energy resilience: How does the digital economy affect the global energy value chain?

Abstract

The frequent occurrence of global economic black swan events has affected the development of the global energy value chain (GEVC) and exposed countries to considerable uncertainty. However, digital economy development can offer new solutions and perspectives for countries to mitigate external shocks, ensure energy security and improve energy resilience. This study examines 71 countries from 2010 to 2019, innovatively obtaining GEVC from input–output tables to explore the impact and mechanism of the digital economy on GEVC in terms of countries’ dimensions of participation and position. The relevant results are threefold. First, the digital economy increases countries’ participation in GEVC and pushes them to move downstream of the GEVC. This result still holds after robustness tests. Second, the mechanism test demonstrates that the digital economy can influence factor allocation and innovation to affect countries’ GEVC participation. Third, the effect of the digital economy on a nation's ability to participate in the GEVC varies depending on the external and internal threats that the nation faces. This study enriches the research on global value chains and has important implications encouraging countries to advance digital economy development, navigate external shocks and accelerate digital economy and GEVC integration.