When climate policy's up in the air: How digital technology impacts corporate energy intensity

Abstract

Digital technologies are becoming a key force in reshaping the contemporary energy system and energy structure, however, the uncertainty of climate policies caused by climate change brings new challenges and opportunities for enterprises to transform digitally and enhance energy efficiency. Drawing on data from Chinese listed companies spanning 2010 to 2022, empirical findings demonstrate that enterprise digital technology (DT) effectively reduces energy consumption intensity (ECI). Moreover, climate policy uncertainty (CPU) acts as a catalyst, amplifying the energy-saving impact of DT while further advancing its application within enterprises. Mechanism analysis reveals that DT contributes to energy conservation by improving total factor productivity and innovation efficiency, expanding enterprise scale, promoting digital transformation, and reducing costs. Heterogeneity analysis indicates that the energy-saving effect of DT is particularly pronounced in areas characterized by high levels of energy uncertainty, manufacturing sectors, and big data experimentation domains. This paper provides novel micro-level evidence for comprehensively understanding the interplay among CPU, adoption of DT, and ECI.