Frontiers in Business, Economics and Management ISSN: 2766-824X | Vol. 15, No. 2, 2024 124 Research on the Coupling Mechanism between Digital Economy Development and Household Energy Transition in China -- An Empirical Analysis Based on Provincial Panel Data Yi Zhang 1, *, Jiayue Chai 2, Haozhe Jin 1, Deyu Li 3 1 School of Finance, Anhui University of Finance and Economics, Bengbu, Anhui 233030, China 2School of Statistics and Applied Mathematics, Anhui University of Finance and Economics, Bengbu, Anhui 233030, China 3School of Economics, Anhui University of Finance and Economics, Bengbu, Anhui 233030, China * Corresponding author: Yi Zhang (Email: aufezhangyi@163.com) Abstract: In order to explore the relationship between the digital economy and China's household green energy structure and utilization efficiency, an empirical test is conducted based on the data of 31 Chinese provinces from 2015 to 2022 using a two- way panel fixed-effects model as well as a coupling model. The results show that the digital economy has a significant positive effect on household green energy structure and utilization efficiency; secondly, this paper focuses on the bi-directional relationship between the two, and finds that the overall coupling situation is good, and the digitalization level and household green energy utilization efficiency in the regions under the "inverted triangle" pattern are highly coupled. The study finds that the overall coupling is good, and the digitalization level and household green energy utilization efficiency in the "inverted triangle" pattern are highly coupled. This study provides a reference for accelerating the national energy transition, boosting China's digital economy in the reverse direction, and providing green and digital kinetic energy for realizing the overall high- quality development of the economy. Keywords: Digital economy, Green energy efficiency, Coupling mechanism. 1. Introduction Against the background of the current global green economy, China is committed to promoting the construction of an ecological civilization and sustainable economic development. In view of the increasingly serious problem of global warming and the rising call for emission reduction, low-carbon development has become the common pursuit of the international community. As one of the important sources of carbon emissions, the energy consumption of households is gradually attracting the deep attention of the international community and the scientific community. According to statistics, China's total energy production in 2020 will be 4.08 billion tons of standard coal, an increase of nearly 2.77% year-on-year, while consumption exceeds production, reaching 4.98 billion tons of standard coal, an increase of 2.16% year-on-year. For a long time, coal has been the main source of China's energy consumption, and the proportion of coal consumption in 2020 will be as high as 56.8%. Although China has achieved the goal of prioritizing the development of electric power during the 13th Five-Year Plan period, it is still facing the challenges of irrational structure of energy production and consumption, weak foundation of new energy technology innovation, and low efficiency of energy utilization. The report of the twentieth CPC National Congress clearly pointed out that in-depth promotion of the energy revolution, accelerate the planning and construction of a new type of energy system for the new journey to promote the development of high quality energy has pointed out the direction. The "14th Five-Year Plan" of modern energy system clearly points out that by 2035, China's energy quality development will make decisive progress. Transformation of the energy sector is not only the key pivot point for realizing China's high-quality economic development, but also the core battlefield for reaching the goal of carbon peak and carbon neutrality. Therefore, accelerating the clean and low-carbon transformation of the energy sector and enhancing the energy efficiency of all green elements are crucial to solving the contradiction between energy supply and demand in China. Therefore, it is of great significance to study the development trend of digital economy, energy efficiency and structural optimization, and to explore the intrinsic connection between the level of development of digital economy and the green energy structure and utilization efficiency of Chinese households in order to improve energy efficiency, promote the transformation of Chinese households' energy to low carbon, and realize the high quality development of the society and economy as well as the goal of "dual-carbon". It is of great practical significance. 2. Literature Review Tapscott, an American scholar, is the original proponent of the concept of digital economy [1], and Carlsson believes that the digital economy is a new type of economic form formed after the emergence of the Internet technology, emphasizing the in-depth application of the Internet [2]. With the evolution of the times, the connotation of digital economy has been continuously adjusted and enriched, although a unified standard definition has not yet been formed, but the connotation of digital economy proposed by the Hangzhou G20 Summit has been widely recognized in the academic 125 community. This paper adopts the definition that digital economy refers to economic activities relying on digital knowledge and information as the core production factors, relying on modern information networks as the key carriers, and relying on the effective use of information and communication technologies to promote the efficiency improvement and optimization of economic structure [3]. The current literature on the development of the digital economy on the current energy transition of Chinese households generally concludes that there are positive spillover effects of the digital economy on the current green energy structure and utilization efficiency of Chinese households [4]. Zhang Sanfeng et al. (2019) showed that the development of technology has enabled digitalization to bring positive effects on the high efficiency of green energy [5]. As an innovative production factor, the digital economy plays an important role in the manufacturing process mainly due to the use of technology and its integration. According to the theory proposed by Schumpeter, innovation means establishing a new production function. Wang Dongfang et al. (2019) applied this theory to the impact of digital economy on green energy efficiency, and argued that digital economy, as a kind of technological innovation and a production element with network characteristics, produces a multiplier effect in all aspects of production, transaction and consumption [6]. Zhou et al. (2016) further elaborated that the digital economy, with data as the main production element, can significantly reduce the excessive consumption of physical resources and energy in the traditional manufacturing process, accelerate the adjustment of the elemental structure, and enhance the efficiency of elemental use [7]. Along with the continuous progress of digital economy, the barriers to the flow of resources in different regions will be significantly lowered, which will promote the implementation of green technological innovation in each place to achieve the goal of low energy consumption and high quality development. In addition, the digital economy can also stimulate the passion of innovation in each region and promote the transformation of industrial structure towards high-end and rationalization. According to Han Pioneer et al. (2014), the development of production technology is the basic driving force for the improvement of manufacturing structure [8]. Digitalization has the characteristics of technological progress, and its application in production operation will lead to the reconfiguration of production resources and elements, optimize the production system and organizational structure, and improve the efficiency of resource allocation. At the same time, the popularization of digital economy will promote the optimization and upgrading of industrial structure in an all- round way, and match the regional development level. In such an environment, digitalization will change the degree of economic dependence on energy resources and the efficiency of their use, improve the efficiency of resource allocation, and continue to enhance green energy efficiency [9]. The literature has analyzed the digital economy and energy structure in one direction, and lacks an in-depth examination of the relationship between the two. This project aims to redefine the digital economy under the OECD framework by constructing a coupling model and referring to the 2022 U.S. "Updated Digital Economy Measurement" report, which will provide a theoretical basis and policy recommendations for geographic areas with poor coupling, and at the same time make some contributions to the smooth development of the two-way transformation of China's digital economy and energy sector. 3. Theoretical Mechanisms and Research Hypotheses 3.1. The Single Mechanism of Action of the Digital Economy on Household Energy in China The digital economy has reshaped the structure of household energy use. In the past, household energy consumption relied mainly on traditional fossil energy sources, such as coal and oil. However, with the popularization and application of digital technology, more and more households are using renewable energy sources such as solar and wind power. This shift not only helps to reduce carbon emissions and alleviate environmental pollution, but also lowers the cost of household energy consumption. For example, many households have installed solar power systems, which convert light energy into electricity through solar panels, not only to meet the daily electricity needs of the household, but also to sell the excess electricity to the grid company, realizing a two-way flow of energy. Accordingly, the following assumptions are made: H1: There is a positive contribution of digitization to the optimization of the energy use structure of Chinese households. H2: There is a positive contribution of digitalization to the improvement of green energy use efficiency in Chinese households. 3.2. Mechanisms of Coupling the Digital Economy and the Energy Structure of Chinese Households In the current context, the relationship between the digital economy and the energy mix has clearly demonstrated a non- unidirectional correlation. With the optimization of household energy structure and the popularization of clean energy, it also promotes the development of digital economy. On the one hand, the widespread application of clean energy provides more stable and environmentally friendly energy support for the digital economy. On the other hand, the change in household energy structure has given rise to new business models and services. This two-way coupling and coordination mechanism plays an important role in promoting the high-quality development of the regional economy. On the one hand, the development of digital economy promotes the optimization of household energy structure, improves the efficiency of energy use and reduces environmental pollution, providing strong support for the sustainable development of the regional economy. On the other hand, the change of household energy structure also promotes the innovation and development of digital economy, and injects new vitality into the regional economy. Accordingly, the following assumptions are made: H3: There is a coupling effect between the digital economy and the efficiency and structure of green household energy use in China. 126 4. Indicator Construction and Research Methodology 4.1. Indicator Construction and Data Sources 4.1.1. Indicator Construction This paper draws on the research of Chen Siyi (2021) to analyze the energy consumption structure of the household sector by standardizing the calculation of the conversion factor, unifying it into the standard coal unit, and de- quantifying it [10]. Using the data from the National Bureau of Statistics (NBS) and combining the Super-SBM and SDM methods, we accurately calculate the energy efficiency HGEE of each province in China.2 Finally, we choose the green energy efficiency (HGEE) of Chinese households as an evaluating index, and assess the level of its level in terms of the optimization of the structure of energy use (HGEE1) and the efficiency of energy use (HGEE2). The measurement of digitalization in this paper refers to the study of Yanru Li et al. (2023), which uses the improved entropy method to measure the scale of digital economy [11]. This paper focuses on digitization (DE) as the core explanatory variable, subdividing the indicators into three categories: industrial digitization, digital industrialization and digital infrastructure, and selecting 10 sub-indicators. The indicator data are standardized by using the method of polar deviation (Tian Jiali, 2022) [12], in order to eliminate the existence of the influence of the scale between each indicator. At the same time, in order to ensure the objectivity and referability of the results of the calculation of indicator weights, this paper uses the entropy weighting method to solve the weights (Cai Qiang, 2022; Sun Miaoying, 2022) [13, 14], and the specific results are shown in Table 1. Table 1. Digital Economy Measurement Indicator System Composite indicators Indicator category Indicator name unit of measure Indicator properties Level of development of the digital economy Industrial Digitizatio n Provincial e-commerce turnover trillion dollars + Websites per 100 businesses classifier for individual things or people, general, catch-all classifier + Number of enterprises with e-commerce trading activities ten + digital industriali zation Revenue from software operations ten thousand dollars + Electronic information manufacturing growth rate % + Employment in the information and communications industry all the people + Proportion of fixed investment in ICT industry to total investment in society as a whole % + digital infrastruct ure Provincial Internet penetration rate % + Number of IPV4 addresses ten dollars + Fiber optic line length kilometer + The improved entropy method was used for the determination of indicator weights: π‘Šπ‘– = 𝑔𝑗 βˆ‘ 𝑔𝑗 𝑛 𝑗=1 (1) Among them: 𝑝𝑖𝑗 = π‘₯𝑖𝑗 βˆ‘ π‘₯𝑖𝑗 π‘š 𝑖=1 (2) 𝑒𝑗 = 1 ln π‘š βˆ‘ (𝑝𝑖𝑗 ln 𝑝𝑖𝑗) π‘š 𝑖=1 (3) 𝑔𝑗 = 1 βˆ’ 𝑒𝑗 (4) The final comprehensive assessment is measured: 𝑠𝑖 = βˆ‘ π‘€π‘—π‘Žπ‘–π‘— 𝑛 𝑖=1 (5) Among them, if the 𝑠𝑖 is larger, it indicates that the sample effect is better, the higher the digitization level of the province. In addition, the raw data of each indexπ‘Žπ‘—π‘— In addition, the weights of the indicators were determined after their dimensionless processing by the extreme value method before measurement, and the dimensionless processing formula was as follows: π‘₯𝑖𝑗 = π‘Žπ‘–π‘—βˆ’π‘šπ‘–π‘›(π‘Žπ‘–π‘—) π‘šπ‘Žπ‘₯(π‘Žπ‘–π‘—)βˆ’π‘šπ‘–π‘›(π‘Žπ‘–π‘—) (6) The weights of the three types of indicators obtained using the entropy method are as follows Table 2. The weights of the three types of indicators using entropy value method are shown in Table 2, and then weighted comprehensively to get the comprehensive score of provincial digitization level. 127 Table 2. Weights of the various indicators Indicator category Indicator name Indicator properties entropy (physics) coefficient of variation weights Industrial Digitization Provincial e-commerce turnover + 0.835 0.165 0.127 Websites per 100 businesses + 0.933 0.167 0.051 Number of enterprises with e-commerce trading activities + 0.857 0.143 0.110 digital industrialization Revenue from software operations + 0.876 0.124 0.095 Electronic information manufacturing growth rate + 0.854 0.146 0.112 Employment in the information and communications industry + 0.878 0.112 0.094 Proportion of fixed investment in ICT industry to total investment in society as a whole + 0.855 0.145 0.111 digital infrastructure Provincial Internet penetration rate + 0.897 0.103 0.079 Number of IPV4 addresses + 0.877 0.123 0.094 Fiber optic line length + 0.835 0.165 0.079 Considering the complexity of the factors affecting energy efficiency, this paper refers to Xia Li's study [15], and chooses the economic development level X1 urbanization level X2 energy consumption structureX3 the degree of government interventionX4 and the degree of opening up to the outside worldX5 as control variables. Table 3. Selection of partially relevant variables serial number variant descriptive control variable Level of economic development (X1 ) Annual real per capita GDP in provinces Level of urbanization (X2 ) Total urban population as a percentage of total population Energy consumption structure (X3 ) Renewable energy production as a percentage of total primary energy production Level of government intervention (X4 ) General fiscal expenditure as a percentage of GDP Degree of openness to the outside world (X5 ) Total exports and imports as a percentage of GDP 4.1.2. Sample Selection and Data Sources This paper considers the feasibility of the study and the availability and timeliness of the data, and chooses 31 provinces and autonomous regions in China as the research object. The year 2015 is chosen as the starting year because the popularization of smartphones and other mobile terminals has laid the foundation for the digital economy since 2015. Therefore, taking 2015 as the starting point, the impact of the digitalization process on the economy and society can be more comprehensively and accurately analyzed. In this paper, the green energy efficiency panel data of Chinese provinces in 2015-2022 is used as a research sample, and the data is obtained from the Gross national product by province and household data by province from the China Statistical Yearbook (2015-2022). Total energy inputs by province from China Energy Statistics Yearbook (2015-2022). Labor input and capital stock by province are from China Urban Statistical Yearbook (2015-2022) and provincial statistical yearbooks. Data on provincial emissions of wastewater, SO2 and other undesired outputs are from the China Environmental Statistics Yearbook and the China Energy Statistics Yearbook (2015-2022). 4.2. Research methodology 4.2.1. Baseline Regression Model In order to examine the impact of digitalization on green energy efficiency of Chinese households, the following benchmark regression model is constructed: 𝐻𝐺𝐸𝐸𝑖𝑑 = 𝛼1 + 𝛼2𝐷𝐸𝑖𝑑 + 𝛼3πΆπ‘œπ‘›π‘‘π‘–π‘‘ + πœ‡π‘– + πœŽπ‘‘ + πœ€π‘–π‘‘ (7) Where: i, t represent province and year subscripts, respectively. The explanatory variables are the green energy efficiency of households in each province ( 𝐹𝐺𝐸𝐸𝑖𝑑 ). The digitization level of each province ( 𝐷𝐸𝑖𝑑 ) is the core explanatory variable. cont is the control variable: containing the level of economic development π‘₯1 urbanization level π‘₯2 energy consumption structure π‘₯3 government intervention level π‘₯4 the degree of government intervention, the degree of openness to the outside world, and the level of economic development, urbanization, energy consumption structure π‘₯5 Cont is the control variable. πœ‡π‘– is individual fixed effects. πœŽπ‘‘ represents year fixed effect. πœ€π‘–π‘‘ represents the random error term. 4.2.2. Coupled Models Since the data outlines and units of the indicators measuring the level of development of digital economy and green energy efficiency of Chinese households are different, in order to increase the scientificity of the calculation, this paper programmatizes the data, determines the weights of each indicator by using principal component analysis, calculates the index of the energy consumption situation and the level of digital development, and analyzes the coupled degree of coordination between Chinese households' energy consumption and the degree of coordination of the high- quality development of the digital economy. The coupling coordination evaluation index system is established, the positive and negative indicators are standardized by using the extreme difference method, and the entropy weighting method is used to objectively assign weights to each indicator. After calculating the weights of each index, linear weighting is carried out to calculate the comprehensive index of the corresponding system. 128 In order to study the coupling relationship between green energy efficiency of Chinese households and the degree of coordination of high-quality development of digital economy, the following coupling degree model is established: C = 2 βˆ— √(U1 βˆ— U2)(U1 βˆ— U2) 2 (8) T = a βˆ— U1 + b βˆ— U2 (9) The evaluation criteria of coupling degree C are as follows: C=0 no coupling, 0