Abstract:Based on the data of China Family Panel Studies in 2016, this paper explores the effect and mechanism of Internet use on household consumption. The results show that the use of Internet has a significant promoting effect on household consumption, among which shopping online has the most obvious promoting effect on household consumption, and the regression of instrumental variables also proves that the original conclusion is robust. In the exploration of the mechanism of action, it is found that family income is part of the intermediary that Internet use affects family consumption, that is, the Internet promotes family consumption by increasing incomes. Finally, a sample regression is carried out and it is found that in the economically developed areas such as cities and eastern coastal areas, Internet use had a more obvious effect on promoting household consumption.