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Electricity intensity across Chinese provinces: New evidence on convergence and threshold effects

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  • Herrerias, M.J.
  • Liu, G.

Abstract

Energy intensity has gone through different stages across Chinese regions. In this paper, we investigate the stochastic electricity-intensity convergence across the Chinese provinces. Unlike previous work, this paper highlights the relevance of the level of technology of each province and takes into account the economic geography through the examination of club convergence. We perform several unit root tests that introduce structural breaks, nonlinearities and time variation, with the aim to capture the economic transformation of the Chinese economy. Results indicate that the majority of the Chinese regions have converged according to the unit-root tests in time-series analysis, indicating that technological differences diminish over time. However, this convergence pattern occurs within groups of regions, according with club convergence test. Indeed, we find a dominant club and others smaller clubs that few regions belong. However, it is observed that there are regions that still diverge. These findings support our argument that special policy attention is required for those regions displaying divergence.

Suggested Citation

  • Herrerias, M.J. & Liu, G., 2013. "Electricity intensity across Chinese provinces: New evidence on convergence and threshold effects," Energy Economics, Elsevier, vol. 36(C), pages 268-276.
  • Handle: RePEc:eee:eneeco:v:36:y:2013:i:c:p:268-276
    DOI: 10.1016/j.eneco.2012.08.026
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    Cited by:

    1. Ruzive, Tafadzwa & Mkhombo, Thando & Mhaka, Simba & Mavikela, Nomahlubi & Phiri, Andrew, 2017. "Electricity intensity and unemployment in South Africa: A quantile regression analysis," MPRA Paper 81717, University Library of Munich, Germany.
    2. Hao, Yu & Liao, Hua & Wei, Yi-Ming, 2015. "Is China’s carbon reduction target allocation reasonable? An analysis based on carbon intensity convergence," Applied Energy, Elsevier, vol. 142(C), pages 229-239.
    3. repec:eee:eneeco:v:65:y:2017:i:c:p:228-239 is not listed on IDEAS
    4. repec:eee:appene:v:211:y:2018:i:c:p:743-754 is not listed on IDEAS
    5. repec:eee:appene:v:211:y:2018:i:c:p:875-889 is not listed on IDEAS
    6. Zhao, Xueting & Wesley Burnett, J. & Lacombe, Donald J., 2015. "Province-level convergence of China’s carbon dioxide emissions," Applied Energy, Elsevier, vol. 150(C), pages 286-295.
    7. Dayong Zhang and David C. Broadstock, 2016. "Club Convergence in the Energy Intensity of China," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3).
    8. Zhao, Xueting & Burnett, J. Wesley & Lacombe, Donald J., 2014. "Province-level Convergence of China CO2 Emission Intensity," 2014 Annual Meeting, July 27-29, 2014, Minneapolis, Minnesota 169403, Agricultural and Applied Economics Association.
    9. Ma, Ben, 2015. "Does urbanization affect energy intensities across provinces in China?Long-run elasticities estimation using dynamic panels with heterogeneous slopes," Energy Economics, Elsevier, vol. 49(C), pages 390-401.
    10. repec:gam:jsusta:v:9:y:2017:i:8:p:1359-:d:106767 is not listed on IDEAS

    More about this item

    Keywords

    Energy intensity; Convergence; China provinces; Unit roots;

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q47 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy Forecasting
    • Q50 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - General
    • O11 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Macroeconomic Analyses of Economic Development
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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