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Can financial agglomeration narrow the urban-rural electricity consumption gap in China?

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  • Wen, Yi

Abstract

This paper mainly examines the effect of financial agglomeration (FA) on the urban-rural electricity consumption gap (UECG) using a Chinese provincial panel dataset. Firstly, a two-way fixed effects model is used to regress the panel data of 30 provinces in China from 2005 to 2021, the results show that UECG decreases as FA increases, and there is a significant inverse proportionality between FA and UECG. Secondly, the analysis of regional heterogeneity shows that this inverse proportionality is more significant in developed regions, but not in underdeveloped regions. Then it is also found that when the number of green patents is above a certain threshold, the increase in the degree of FA causes UECG to fall sharply, but when it is below the threshold, the increase in the degree of FA causes UECG to fall a little slower. Finally, we draw our main conclusions, briefly analysing the reasons for such results and making some recommendations for future researches and policies.

Suggested Citation

  • Wen, Yi, 2025. "Can financial agglomeration narrow the urban-rural electricity consumption gap in China?," Energy Economics, Elsevier, vol. 147(C).
    • Handle: RePEc:eee:eneeco:v:147:y:2025:i:c:s0140988325004244
    DOI: 10.1016/j.eneco.2025.108600
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    Keywords

    Financial agglomeration; Urban-rural electricity consumption gap; China;
    All these keywords.

    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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