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Trade Liberalization, Energy‐Saving Technological Change And Energy Intensity: Some Empirical Evidence From China

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  • Jun Wang
  • Chengbo Wang
  • Xuan Wan

Abstract

This paper discusses the transmission mechanism and effects that trade liberalization influences energy intensity through energy‐saving technological change (ESTC). We construct panel data from manufacturing industries in China over the period of 1994–2017, thereby conducting empirical tests through mediation models and discontinuity regression models. The results find that trade liberalization significantly promotes the lowering of energy intensity through ESTC. Heterogeneity test results show that the trade liberalization effect is higher in industries with low barriers to entry and industries with high pollution. Fuzzy regression discontinuity (FRD) results show that energy intensity decreasing as China's accession to the World Trade Organization (WTO). (JEL F10, F18, L60, Q43)

Suggested Citation

  • Jun Wang & Chengbo Wang & Xuan Wan, 2021. "Trade Liberalization, Energy‐Saving Technological Change And Energy Intensity: Some Empirical Evidence From China," Contemporary Economic Policy, Western Economic Association International, vol. 39(2), pages 365-376, April.
    • Handle: RePEc:bla:coecpo:v:39:y:2021:i:2:p:365-376
    DOI: 10.1111/coep.12514
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    More about this item

    JEL classification:

    • F10 - International Economics - - Trade - - - General
    • F18 - International Economics - - Trade - - - Trade and Environment
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

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