Digital economy and energy security risk: global impacts and mechanisms

The digital economy, as a new engine of global economic development, offers a possible solution for mitigating energy security risk. Based on a global dataset of 63 countries from 2003 to 2018, this paper uses a panel fixed effect model to examine the impact of the digital economy on energy security risks and investigates the transmission mechanisms through government effectiveness and industrial intelligence. The results indicate that digital economy significantly reduces energy security risk from a global perspective, with a 1% increase in the digital economy reducing the energy security risk by approximately 0.09%. Furthermore, the digital economy reduces energy security risk by enhancing government effectiveness and promoting industrial intelligence. Finally, the heterogeneity analysis demonstrates that digital economy significantly reduces energy security risks in non-OECD and fossil energy-dependent countries but has a negligible effect in OECD and clean energy-leading countries with mature energy systems; although the digital economy reduces risks across all ‘4 As’ dimensions of energy security, its impact on affordability is smaller due to the complexities of energy pricing. This study expands the current debate on digitalization and energy security, underscoring that the energy-saving effects of the digital economy outweigh its potential rebound effects.