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Energy Transition and Economic Development in China: A National and Sectorial Analysis from a New Structural Economics Perspectives

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  • Dong Wang

    (Crawford School of Public Policy, The Australian National University, Canberra, ACT 2600, Australia
    Centre for Contemporary Chinese Studies, The University of Melbourne, Parkville, VIC 3010, Australia)

  • Ben White

    (School of Agriculture and Environment, The University of Western Australia, Crawley, WA 6009, Australia)

  • Amin Mugera

    (School of Agriculture and Environment, The University of Western Australia, Crawley, WA 6009, Australia)

  • Bei Wang

    (School of Government, University of International Business and Economics, Beijing 100029, China)

Abstract

New Structural Economics (NSE) predicts that structural change in energy production would follow different patterns during different development stages and across different sectors. These variations require a range of policy responses. In this paper, we investigate this assertion by modeling China’s energy transition and economic development based on provincial panel data from 2000 to 2012. By using static models (Fama–MacBeth, OLS, fixed effect) and dynamic models (difference and system GMM), we find the relationship between low-carbon energy transition and economic development presents a U-shaped curve at the national level, but it is an inverted-U curve at the residential level. Furthermore, it is ambiguous in the agricultural sector and independent of economic development in the industry and service sectors. Institutional factors, natural resource endowment, environmental policy, and technological change influence China’s energy transition. Our findings supports NSE application in the Chinese energy economy and diversify energy transition policy by adjusting to the local conditions.

Suggested Citation

  • Dong Wang & Ben White & Amin Mugera & Bei Wang, 2022. "Energy Transition and Economic Development in China: A National and Sectorial Analysis from a New Structural Economics Perspectives," Sustainability, MDPI, vol. 14(24), pages 1-19, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16646-:d:1001286
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