Management Review

Management Review ›› 2026, Vol. 38 ›› Issue (8): 3-17.

• Economic and Financial Management •    

Research on Industrial Digitalization Inputs, Electricity Dependence and Spillover Effects

Yu Xingjin1, Fang Ying1,2   

  1. 1. The Wang Yanan Institute for Studies in Economics, Xiamen University, Xiamen 361005;
    2. Laboratory of Digital Finance, Xiamen University, Xiamen 361005
  • Received:2024-11-27 Published:2026-09-11

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Abstract: Digitalization not only drives the expansion of energy demand but also profoundly reshapes the patterns of energy supply and consumption, so it is of great significance to explore the impact of industrial digital transformation on electricity dependence. Based on China’s input-output tables from 1993 to 2021 provided by Eora, this paper measures electricity dependence by the share of total inputs from the electricity production and supply sector in industry intermediate inputs, and investigates the impact of industrial digitalization inputs on electricity dependence as well as the mechanism underlying the impact. The findings indicate that industrial digitalization inputs have a significant positive effect on electricity dependence, which remains robust after addressing endogeneity concerns and a series of robustness checks. Specifically, industrial digitalization inputs strengthen internal electricity demand by increasing direct electricity dependence and electrification rates on the one hand, and further amplifies electricity demand by enhancing indirect electricity dependence and generating spillover effects that transmit along upstream and downstream supply chains on the other hand. Moreover, digitalization inputs in the electricity production and supply sector helps optimize its energy consumption structure, and improved access to clean energy also facilitates industrial digital transformation. Furthermore, the promoting effect of industrial digitalization inputs on electricity dependence is stronger in industries with high energy consumption, high electrification rates, and high digitalization intensity, exhibiting heterogeneous effects across industries with different factor intensities. This paper provides empirical evidence for understanding changes in industrial energy use structure amid digital transformation and for formulating differentiated industrial and low-carbon transition policies.

Key words: industry digitalization inputs, electricity dependence, energy consumption structure, spillover effects