The impact of internet development on China's energy intensity and its mechanism analysis

China plans to arrive at its peak in the emissions of carbon dioxide and reach carbon neutrality by 2030 and 2060, respectively. What role does internet technology, as a key twenty-first-century technology, play in China's achievement of its two carbon goals? Based on datasets about Chinese prefecture-level cities collected mainly from statistical reports released by the China Internet Network Information Center (CINIC), China City Statistical Yearbook, and China Energy Statistical Yearbook in 2006–2019, this paper empirically examines how the development of the internet influencing energy efficiency. This paper uses the policy of “network power nation” strategy and “internet plus” (NPNIP) as a policy impact to construct a continuous difference-in-difference (DID) model for an empirical investigation, and use a mediating effect analysis to test the transmission mechanism involved in industrial structure upgrading, technological innovation, and economic agglomeration. Empirical findings show that energy efficiency is improved by the development of internet. But this result has significant regional heterogeneity. Internet development can significantly reduce energy intensity in the eastern region and mature resource-based cities, but not the central and western regions and other resource-based cities. The mediating effect results show that the internet improves energy efficiency in three ways: upgrading industrial structure, stimulating technological innovation, and economic agglomeration. The empirical findings in this paper lead to many policy recommendation, including strengthening the formation of new infrastructure, deepening the organic integration of the internet across industries, and exploring the legal regulations on internet technology in specific application areas.