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How Does Energy Misallocation Affect Carbon Emission Efficiency in China? An Empirical Study Based on the Spatial Econometric Model

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  • Xiaoxiao Chu

    (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China)

  • Hong Geng

    (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China)

  • Wen Guo

    (College of Accounting, Nanjing University of Finance and Economics, Nanjing 210023, China)

Abstract

As an essential factor of production, energy is receiving increased attention. Yet, other than some fundamental policy suggestions towards China’s energy issues, there have been very few investigations into energy misallocation so far. The measurements of energy misallocation index and carbon emission efficiency were made based on the panel data from 30 provinces in China. To empirically study the impact of energy misallocation on carbon emission efficiency, a spatial econometric model was built. It is found that during the survey period, there was a certain degree of energy misallocation in all regions of China, and the differences between the regions were obvious. There is an inverted U-shaped relationship between the impact of energy misallocation and carbon emission efficiency in which intensified allocation distortion accelerates the arrival of the critical point that is not conducive to energy conservation and emission reduction. The results viewed by regions show that due to a low degree o * f misallocation, the impact of carbon emission efficiency in the east region is positive, while that of the central and west regions are mostly negative. Accordingly, it is necessary to accelerate the marketization process of the energy market and improve the ecological quality.

Suggested Citation

  • Xiaoxiao Chu & Hong Geng & Wen Guo, 2019. "How Does Energy Misallocation Affect Carbon Emission Efficiency in China? An Empirical Study Based on the Spatial Econometric Model," Sustainability, MDPI, vol. 11(7), pages 1-16, April.
    • Handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:2115-:d:221293
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