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Climate policy uncertainty and energy transition: Evidence from prefecture-level cities in China

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  • Lin, Yangyi
  • Cheung, Adrian (Wai Kong)

Abstract

Extreme weather has become a severe threat to humanity today, with a major blow to energy systems. Energy transformation has become a significant trend in global development, and China has the responsibility and obligation to combat climate change. This paper examines the impact of climate policy uncertainty on energy transformation in China at prefecture-level cities level. A new climate policy uncertainty index and a new measure of energy transition are proposed. The results indicate that climate policy uncertainty has a negative impact on the energy transition. The result still holds after a series of robustness tests. Further analysis shows that the adverse impact of climate policy uncertainty on the energy transition weakens with more proactive government behavior and greater public environmental concerns. For cities that are economically underdeveloped, non-resource oriented and officials’ promotion pressure mounting, the disincentive to energy transition is greater when climate policy uncertainty rises.

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  • Lin, Yangyi & Cheung, Adrian (Wai Kong), 2024. "Climate policy uncertainty and energy transition: Evidence from prefecture-level cities in China," Energy Economics, Elsevier, vol. 139(C).
  • Handle: RePEc:eee:eneeco:v:139:y:2024:i:c:s0140988324006467
    DOI: 10.1016/j.eneco.2024.107938
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    2. Zhilun Jiao & Zixuan Xia, 2025. "Is the Digital Divide Inhibiting Urban Energy Transitions?—Evidence from China," Energies, MDPI, vol. 18(4), pages 1-23, February.

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    More about this item

    Keywords

    Climate policy uncertainty(CPU) index; Energy transition; Low carbon economics;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth

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