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The unintended consequence of human capital intensity on energy intensity: Evidence from China

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  • Xu, Yang
  • Xiang, Wenbin
  • Du, Peng
  • Cao, Liang

Abstract

Human capital is an essential determinant of economic growth. Exploiting the exogenous policy of university expansion in China as a quasi-experiment, this paper investigates the unintended impact of human capital intensity on energy intensity at the firm level using a difference-in-differences strategy. We find that the increase in human capital intensity reduces firms' energy intensity, thus improving energy efficiency. We find that more white-collar jobs and potential skill upgrades are the main drivers of reduced energy intensity. Moreover, we find that the impact on energy intensity is larger for private firms, light industry firms and firms in non-capital cities. Our findings provide an unintended but important consequence of human capital improvement through the lens of energy consumption.

Suggested Citation

  • Xu, Yang & Xiang, Wenbin & Du, Peng & Cao, Liang, 2025. "The unintended consequence of human capital intensity on energy intensity: Evidence from China," China Economic Review, Elsevier, vol. 93(C).
    • Handle: RePEc:eee:chieco:v:93:y:2025:i:c:s1043951x25001312
    DOI: 10.1016/j.chieco.2025.102473
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    JEL classification:

    • Q40 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - General
    • J24 - Labor and Demographic Economics - - Demand and Supply of Labor - - - Human Capital; Skills; Occupational Choice; Labor Productivity

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