Can digital economy development improve total factor energy efficiency? Evidence from China | Research Square window.SnipcartSettings = { analytics: { enabled: false } }; (function() { var accessVector = localStorage.getItem('access_vector') || ''; window.dataLayer = window.dataLayer || []; if (accessVector) { window.dataLayer.push({ user: { profile: { profileInfo: { snid: accessVector } } } }); } })(); (function(w,d,s,l,i){w[l]=w[l]||[];w[l].push({'gtm.start':new Date().getTime(),event:'gtm.js'});var f=d.getElementsByTagName(s)[0],j=d.createElement(s),dl=l!='dataLayer'?'&l='+l:'';j.async=true;j.src='https://www.googletagmanager.com/gtm.js?id='+i+dl;f.parentNode.insertBefore(j,f);})(window,document,'script','dataLayer','GTM-K279D39R'); Browse Preprints In Review Journals COVID-19 Preprints AJE Video Bytes Research Tools Research Promotion AJE Professional Editing AJE Rubriq About Preprint Platform In Review Editorial Policies Our Team Advisory Board Help Center Sign In Submit a Preprint Cite Share Download PDF Research Article Can digital economy development improve total factor energy efficiency? Evidence from China Xiao Liu, Yumeng Dai This is a preprint; it has not been peer reviewed by a journal. https://doi.org/ 10.21203/rs.3.rs-7253469/v1 This work is licensed under a CC BY 4.0 License Status: Published Journal Publication published 28 Nov, 2025 Read the published version in Discover Sustainability → Version 1 posted 11 You are reading this latest preprint version Abstract While digital transformation enhances energy efficiency through transaction cost reduction, resource optimization, and information dissemination, it simultaneously raises concerns regarding potential rebound effects in energy consumption. Such paradoxical dynamics underscore the necessity for rigorous examination of underlying mechanisms to harness the digital economy’s environmental potential and inform sustainable development policies. This study establishes an integrated “mechanism-heterogeneity” analytical framework using panel data from 30 Chinese provinces (2011–2023). We employed Entropy Weight Method (EWM) and Slacks-Based Measure Data Envelopment Analysis Model (SBM-DEA) to quantify digital economy development and total-factor energy efficiency (TFEE), respectively. This study further combined fixed-effects models, mediation analysis, and regional comparative studies to elucidate causal mechanisms and spatial variations. Key findings indicate: (1) Digital economy development significantly enhances TFEE, with particularly strong effects in western China; (2) The impact manifests through both direct channels (digital infrastructure deployment and factor allocation optimization) and indirect pathways (technology innovation and industrial restructuring); (3) Mediating effects exhibit distinct regional patterns, technology-driven in eastern provinces, industrial upgrading-focused in central regions, and rationalization-oriented in western areas. These insights inform a multi-tiered policy framework addressing digital governance institutions, technology incentives, and region-specific implementation strategies, offering empirically grounded approaches for aligning technological progress with ecological modernization goals. Digital economy Total factor energy efficiency Mediating effect Regional heterogeneity Full Text Additional Declarations No competing interests reported. Cite Share Download PDF Status: Published Journal Publication published 28 Nov, 2025 Read the published version in Discover Sustainability → Version 1 posted Editorial decision: Revision requested 26 Aug, 2025 Reviews received at journal 14 Aug, 2025 Reviews received at journal 13 Aug, 2025 Reviewers agreed at journal 11 Aug, 2025 Reviewers agreed at journal 08 Aug, 2025 Reviewers agreed at journal 08 Aug, 2025 Reviewers invited by journal 08 Aug, 2025 Editor invited by journal 02 Aug, 2025 Editor assigned by journal 01 Aug, 2025 Submission checks completed at journal 01 Aug, 2025 First submitted to journal 30 Jul, 2025 You are reading this latest preprint version Research Square lets you share your work early, gain feedback from the community, and start making changes to your manuscript prior to peer review in a journal. As a division of Research Square Company, we’re committed to making research communication faster, fairer, and more useful. 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