China’s energy market reform is characterized by “asymmetry” as a result of the transition from a planned economy to a market economy, leading to typical distortions in energy prices. Using panel data from 30 Chinese provinces during 2006–2018, this paper examines the impact of the price distortions of fossil energy sources (coal, oil, and natural gas) as well as renewable energy on China’s economic growth and carbon emissions. The results show that coal price distortion is the highest among the fossil energy sources, followed by oil and natural gas. Renewable energy price is positively distorted. Not all price distortions of energy sources significantly impede economic growth—only those of coal and renewable energy. In contrast, oil and natural gas price distortions promote economic growth. All four energy price distortions contribute significantly to the increase in carbon emissions. Further analysis reveals that regional heterogeneity exists in the impact of energy price distortions on economic growth and carbon emissions. Additionally, this study finds that technological innovation, industrial structure upgrading, the investment effect, the optimization of energy consumption structure, and environmental regulations are important transmission mechanisms of energy price distortions affecting China’s economic growth and carbon emissions. The findings of this study can help us to understand the relationship between energy price distortions and China’s economic growth and carbon emissions, and provide a reference for formulating energy price reform policies that benefit the win-win development of China’s economy and environment.

Achieving energy market integration is crucial to safeguarding national energy security and guaranteeing an uninterrupted flow of energy resources. The digital economy injects new momentum into energy market integration. Employing panel data from 30 provinces in China spanning the period 2011-2023, this study investigates how the digital economy promotes energy market integration. This study further measures the energy market integration index and explores the underlying mechanisms. The results indicate that: First, China's energy market integration has generally improved, as evidenced by the stark contrast between top-performing regions like Guangdong and Fujian and lower-integration regions like Shaanxi and Ningxia. Second, the digital economy significantly facilitates energy market integration. The findings reveal that the digital economy functions through dismantling local protectionism, enhancing resource allocation efficiency, and strengthening regional economic linkages to drive energy market integration. Furthermore, the effect of the digital economy on integration is heterogeneous, being particularly strong in energy import regions, regions with low digitalization, and economically developed areas. These findings provide a critical reference for efforts to deepen energy system reform and promote coordinated regional economic development.