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The driving effect of energy demand evolution: From the perspective of heterogeneity in technology

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  • Hu, Changshuai
  • Du, Dan
  • Huang, Junbing

Abstract

Technological progress is frequently prioritized to resolve the contradiction between large resource consumption and rapid economic growth. However, in previous energy literature, it is frequently discussed as a whole without considering the heterogeneity. This paper divides the technology into production-oriented and energy-conservation types. Subsequently, a provincial dataset in China between 2000 and 2018 is applied to explore the influence of technology on energy demand. Data on the stock of different patents are employed to identify various technology types. When discussing technology in entirety, empirical regressions indicate that technology does not serve to be a major contributor to the evolution of energy demand. Conversely, when dividing technology into production-oriented and energy-conservation types, both were considered as major forces influencing energy demand but with different effects. The channel analysis suggests that production-oriented technology drives energy demand mainly by increasing individuals’ income and expanding the industrial production scale. The energy-conservation technology is beneficial in controlling the energy demand. The spatial analysis indicates that compared to local technology, technology spillovers from neighbouring regions are essential in influencing energy demand.

Suggested Citation

  • Hu, Changshuai & Du, Dan & Huang, Junbing, 2023. "The driving effect of energy demand evolution: From the perspective of heterogeneity in technology," Energy, Elsevier, vol. 275(C).
    • Handle: RePEc:eee:energy:v:275:y:2023:i:c:s0360544223007557
    DOI: 10.1016/j.energy.2023.127361
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