IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v286y2024ics0360544223029833.html
   My bibliography  Save this article

Reaping green dividend: The effect of China's urban new energy transition strategy on green economic performance

Author

Listed:
  • Lin, Boqiang
  • Xu, Chongchong

Abstract

As cities face escalating resource and environmental challenges, advancing green economic performance (GEP) emerges as a critical pathway for sustainable urban development. While China's urban new energy transition strategy presents a promising paradigm shift in the realm of green energy, there exists a knowledge gap regarding its tangible impact on green economic grown. Drawing on city-level panel data from 2006 to 2020, this research assesses the GEP of 260 Chinese cities utilizing the non-radial distance function methodology. Subsequently, the difference-in-differences method is applied to offer quasi-experimental insights into the effects of the New Energy Demonstration City (NEDC) policy on urban GEP. Our findings indicate that the NEDC policy has both economically and statistically significant ramifications for urban GEP, leading to an enhancement effect of approximately 2.0 %. This outcome remains consistent even after rigorous robustness checks. A heterogeneity analysis reveals that the NEDC policy exerts a more pronounced influence on the GEP of central, western, and non-resource cities. Mechanism analysis suggests that the positive policy effect is primarily driven by the advancement of technological innovation, industrial upgrading, and green finance development. The NEDC policy holds the potential for a symbiotic balance between environmental and economic outcomes, setting a precedent for urban green growth.

Suggested Citation

  • Lin, Boqiang & Xu, Chongchong, 2024. "Reaping green dividend: The effect of China's urban new energy transition strategy on green economic performance," Energy, Elsevier, vol. 286(C).
  • Handle: RePEc:eee:energy:v:286:y:2024:i:c:s0360544223029833
    DOI: 10.1016/j.energy.2023.129589
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223029833
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.energy.2023.129589?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhang, Huiming & Li, Lianshui & Zhou, Dequn & Zhou, Peng, 2014. "Political connections, government subsidies and firm financial performance: Evidence from renewable energy manufacturing in China," Renewable Energy, Elsevier, vol. 63(C), pages 330-336.
    2. Ma, Mengjuan & Zhu, Xiao & Liu, Meishan & Huang, Xiaodong, 2023. "Combining the role of green finance and environmental sustainability on green economic growth: Evidence from G-20 economies," Renewable Energy, Elsevier, vol. 207(C), pages 128-136.
    3. Li, Qiangyi & Zeng, Fu'e & Liu, Shaohui & Yang, Mian & Xu, Fei, 2021. "The effects of China's sustainable development policy for resource-based cities on local industrial transformation," Resources Policy, Elsevier, vol. 71(C).
    4. Du, Zhili & Wang, Yao, 2022. "Does energy-saving and emission reduction policy affects carbon reduction performance? A quasi-experimental evidence in China," Applied Energy, Elsevier, vol. 324(C).
    5. Song, Malin & Mangla, Sachin Kumar & Wang, Jianlin & Zhao, Jiajia & An, Jiafu, 2022. "Asymmetric information, “coal-to-gas” transition and coal reduction potential: An analysis using the nonparametric production frontier method," Energy Economics, Elsevier, vol. 114(C).
    6. Lee, Chien-Chiang & He, Zhi-Wen, 2022. "Natural resources and green economic growth: An analysis based on heterogeneous growth paths," Resources Policy, Elsevier, vol. 79(C).
    7. Cai, Xiqian & Lu, Yi & Wu, Mingqin & Yu, Linhui, 2016. "Does environmental regulation drive away inbound foreign direct investment? Evidence from a quasi-natural experiment in China," Journal of Development Economics, Elsevier, vol. 123(C), pages 73-85.
    8. Cheng, Zhonghua & Yu, Xuejin & Zhang, Yi, 2023. "Is the construction of new energy demonstration cities conducive to improvements in energy efficiency?," Energy, Elsevier, vol. 263(PA).
    9. Shahbaz, Muhammad & Raghutla, Chandrashekar & Chittedi, Krishna Reddy & Jiao, Zhilun & Vo, Xuan Vinh, 2020. "The effect of renewable energy consumption on economic growth: Evidence from the renewable energy country attractive index," Energy, Elsevier, vol. 207(C).
    10. Zhu, Bangzhu & Zhang, Mengfan & Zhou, Yanhua & Wang, Ping & Sheng, Jichuan & He, Kaijian & Wei, Yi-Ming & Xie, Rui, 2019. "Exploring the effect of industrial structure adjustment on interprovincial green development efficiency in China: A novel integrated approach," Energy Policy, Elsevier, vol. 134(C).
    11. Yang, Lisha & Li, Yutianhao & Liu, Hongxun, 2021. "Did carbon trade improve green production performance? Evidence from China," Energy Economics, Elsevier, vol. 96(C).
    12. Färe, Rolf & Grosskopf, Shawna & Pasurka, Carl A., 2007. "Environmental production functions and environmental directional distance functions," Energy, Elsevier, vol. 32(7), pages 1055-1066.
    13. Lin, Boqiang & Zhu, Junpeng, 2019. "Fiscal spending and green economic growth: Evidence from China," Energy Economics, Elsevier, vol. 83(C), pages 264-271.
    14. Destek, Mehmet Akif, 2016. "Renewable energy consumption and economic growth in newly industrialized countries: Evidence from asymmetric causality test," Renewable Energy, Elsevier, vol. 95(C), pages 478-484.
    15. Ru, Peng & Zhi, Qiang & Zhang, Fang & Zhong, Xiaotian & Li, Jianqiang & Su, Jun, 2012. "Behind the development of technology: The transition of innovation modes in China’s wind turbine manufacturing industry," Energy Policy, Elsevier, vol. 43(C), pages 58-69.
    16. Wu, Haitao & Hao, Yu & Ren, Siyu, 2020. "How do environmental regulation and environmental decentralization affect green total factor energy efficiency: Evidence from China," Energy Economics, Elsevier, vol. 91(C).
    17. Bin Xu and Boqiang Lin, 2023. "Investigating the Determinants of the Growth of the New Energy Industry: Using Quantile Regression Approach," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    18. Sha, Ru & Li, Jinye & Ge, Tao, 2021. "How do price distortions of fossil energy sources affect China's green economic efficiency?," Energy, Elsevier, vol. 232(C).
    19. Lin, Boqiang & Du, Kerui, 2015. "Energy and CO2 emissions performance in China's regional economies: Do market-oriented reforms matter?," Energy Policy, Elsevier, vol. 78(C), pages 113-124.
    20. Lin, Boqiang & Zhou, Yicheng, 2021. "Does fiscal decentralization improve energy and environmental performance? New perspective on vertical fiscal imbalance," Applied Energy, Elsevier, vol. 302(C).
    21. Ouyang, Xiaoling & Fang, Xingming & Cao, Yan & Sun, Chuanwang, 2020. "Factors behind CO2 emission reduction in Chinese heavy industries: Do environmental regulations matter?," Energy Policy, Elsevier, vol. 145(C).
    22. Bufan Zhang & Yifeng Wang, 2021. "The Effect of Green Finance on Energy Sustainable Development: A Case Study in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(12), pages 3435-3454, September.
    23. Li, Ke & Lin, Boqiang, 2017. "Economic growth model, structural transformation, and green productivity in China," Applied Energy, Elsevier, vol. 187(C), pages 489-500.
    24. Picazo-Tadeo, Andres J. & Reig-Martinez, Ernest & Hernandez-Sancho, Francesc, 2005. "Directional distance functions and environmental regulation," Resource and Energy Economics, Elsevier, vol. 27(2), pages 131-142, June.
    25. Parvadavardini SOUNDARRAJAN & Nagarajan VIVEK, 2016. "Green finance for sustainable green economic growth in India," Agricultural Economics, Czech Academy of Agricultural Sciences, vol. 62(1), pages 35-44.
    26. Sun, Chuanwang & Zhan, Yanhong & Du, Gang, 2020. "Can value-added tax incentives of new energy industry increase firm's profitability? Evidence from financial data of China's listed companies," Energy Economics, Elsevier, vol. 86(C).
    27. Wen, Huwei & Lee, Chien-Chiang & Zhou, Fengxiu, 2022. "How does fiscal policy uncertainty affect corporate innovation investment? Evidence from China's new energy industry," Energy Economics, Elsevier, vol. 105(C).
    28. Ouyang, Xiaoling & Li, Qiong & Du, Kerui, 2020. "How does environmental regulation promote technological innovations in the industrial sector? Evidence from Chinese provincial panel data," Energy Policy, Elsevier, vol. 139(C).
    29. Jia, Zhijie & Lin, Boqiang, 2023. "Primary fossil energy cost and price regulation in energy processing sectors---the perspective of price regulation market with Chinese characteristics," Resources Policy, Elsevier, vol. 83(C).
    30. Dogan, Eyup & Altinoz, Buket & Madaleno, Mara & Taskin, Dilvin, 2020. "The impact of renewable energy consumption to economic growth: A replication and extension of Inglesi-Lotz (2016)," Energy Economics, Elsevier, vol. 90(C).
    31. Syed Abdul Rehman Khan & Yu Zhang & Anil Kumar & Edmundas Zavadskas & Dalia Streimikiene, 2020. "Measuring the impact of renewable energy, public health expenditure, logistics, and environmental performance on sustainable economic growth," Sustainable Development, John Wiley & Sons, Ltd., vol. 28(4), pages 833-843, July.
    32. Che, Shuai & Wang, Jun & Chen, Honghang, 2023. "Can China's decentralized energy governance reduce carbon emissions? Evidence from new energy demonstration cities," Energy, Elsevier, vol. 284(C).
    33. Huwei Wen, Shuai Chen, and Chien-Chiang Lee, 2023. "Impact of Low-carbon City Construction on Financing, Investment, and Total Factor Productivity of Energy-intensive Enterprises," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2).
    34. Zhou, P. & Ang, B.W. & Wang, H., 2012. "Energy and CO2 emission performance in electricity generation: A non-radial directional distance function approach," European Journal of Operational Research, Elsevier, vol. 221(3), pages 625-635.
    35. Wu, Rongxin & Tan, Zhizhou & Lin, Boqiang, 2023. "Does carbon emission trading scheme really improve the CO2 emission efficiency? Evidence from China's iron and steel industry," Energy, Elsevier, vol. 277(C).
    36. Wang, Mei & Xu, Mi & Ma, Shaojun, 2021. "The effect of the spatial heterogeneity of human capital structure on regional green total factor productivity," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 427-441.
    37. Xiaodong Yang & Weilong Wang & Haitao Wu & Jianlong Wang & Qiying Ran & Siyu Ren, 2022. "The impact of the new energy demonstration city policy on the green total factor productivity of resource-based cities: empirical evidence from a quasi-natural experiment in China," Journal of Environmental Planning and Management, Taylor & Francis Journals, vol. 66(2), pages 293-326, November.
    38. Song, Malin & Du, Juntao & Tan, Kim Hua, 2018. "Impact of fiscal decentralization on green total factor productivity," International Journal of Production Economics, Elsevier, vol. 205(C), pages 359-367.
    39. Li, Ke & Lin, Boqiang, 2015. "Measuring green productivity growth of Chinese industrial sectors during 1998–2011," China Economic Review, Elsevier, vol. 36(C), pages 279-295.
    40. Li, Pei & Lu, Yi & Wang, Jin, 2016. "Does flattening government improve economic performance? Evidence from China," Journal of Development Economics, Elsevier, vol. 123(C), pages 18-37.
    41. Chenhui Ding & Chao Liu & Chuiyong Zheng & Feng Li, 2021. "Digital Economy, Technological Innovation and High-Quality Economic Development: Based on Spatial Effect and Mediation Effect," Sustainability, MDPI, vol. 14(1), pages 1-21, December.
    42. Wang, Qunwei & Fan, Zining, 2023. "Green finance and investment behavior of renewable energy enterprises: A case study of China," International Review of Financial Analysis, Elsevier, vol. 87(C).
    43. Dai, Hancheng & Xie, Xuxuan & Xie, Yang & Liu, Jian & Masui, Toshihiko, 2016. "Green growth: The economic impacts of large-scale renewable energy development in China," Applied Energy, Elsevier, vol. 162(C), pages 435-449.
    44. Fan, Weiyang & Hao, Yu, 2020. "An empirical research on the relationship amongst renewable energy consumption, economic growth and foreign direct investment in China," Renewable Energy, Elsevier, vol. 146(C), pages 598-609.
    45. Lin, Boqiang & Wang, Siquan, 2023. "The performance of specialized and oriented diversified firms: A comparative analysis from the targeted expansion of renewable energy business of listed companies," International Review of Financial Analysis, Elsevier, vol. 89(C).
    46. Lin, Boqiang & Du, Kerui, 2014. "Measuring energy efficiency under heterogeneous technologies using a latent class stochastic frontier approach: An application to Chinese energy economy," Energy, Elsevier, vol. 76(C), pages 884-890.
    47. Zhu, Bangzhu & Zhang, Mengfan & Huang, Liqing & Wang, Ping & Su, Bin & Wei, Yi-Ming, 2020. "Exploring the effect of carbon trading mechanism on China's green development efficiency: A novel integrated approach," Energy Economics, Elsevier, vol. 85(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Gakuru, Elias & Yang, Shaohua & Namahoro, J.P. & Nie, Peng & Bunje, Madinatou Yeh & Aslam, Naveed, 2024. "Energy-focused green climate policies and trade nexus:Do heterogeneous effects on clean energy poverty matter?," Energy, Elsevier, vol. 294(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Lin, Boqiang & Zhou, Yicheng, 2021. "Does fiscal decentralization improve energy and environmental performance? New perspective on vertical fiscal imbalance," Applied Energy, Elsevier, vol. 302(C).
    2. Ke Li & Malin Song, 2016. "Green Development Performance in China: A Metafrontier Non-Radial Approach," Sustainability, MDPI, vol. 8(3), pages 1-21, March.
    3. Lin, Boqiang & Xu, Chongchong, 2024. "Enhancing energy-environmental performance through industrial intelligence: Insights from Chinese prefectural-level cities," Applied Energy, Elsevier, vol. 365(C).
    4. Lin, Boqiang & Zhu, Junpeng, 2019. "Impact of energy saving and emission reduction policy on urban sustainable development: Empirical evidence from China," Applied Energy, Elsevier, vol. 239(C), pages 12-22.
    5. Lee, Chien-Chiang & Zhong, Qiming & Wen, Huwei & Song, Qinghua, 2023. "Blessing or curse: How does sustainable development policy affect total factor productivity of energy-intensive enterprises?," Socio-Economic Planning Sciences, Elsevier, vol. 89(C).
    6. Kuang, Yunming & Lin, Boqiang, 2022. "Natural gas resource utilization, environmental policy and green economic development: Empirical evidence from China," Resources Policy, Elsevier, vol. 79(C).
    7. Lin, Boqiang & Zhou, Yicheng, 2022. "Measuring the green economic growth in China: Influencing factors and policy perspectives," Energy, Elsevier, vol. 241(C).
    8. Zhang, Ning & Zhao, Yu & Wang, Na, 2022. "Is China's energy policy effective for power plants? Evidence from the 12th Five-Year Plan energy saving targets," Energy Economics, Elsevier, vol. 112(C).
    9. Xin Yao & Yuanyuan Cheng & Li Zhou & Malin Song, 2022. "Green efficiency performance analysis of the logistics industry in China: based on a kind of machine learning methods," Annals of Operations Research, Springer, vol. 308(1), pages 727-752, January.
    10. Chong Peng & Jingjing Zhang & Zhenyu Xu, 2022. "Does Price Distortion Affect Energy Efficiency? Evidence from Dynamic Spatial Analytics of China," Energies, MDPI, vol. 15(24), pages 1-15, December.
    11. Zhang, Hua & Xu, Tiantian & Feng, Chao, 2022. "Does public participation promote environmental efficiency? Evidence from a quasi-natural experiment of environmental information disclosure in China," Energy Economics, Elsevier, vol. 108(C).
    12. Li, Ge & Wen, Huwei, 2023. "The low-carbon effect of pursuing the honor of civilization? A quasi-experiment in Chinese cities," Economic Analysis and Policy, Elsevier, vol. 78(C), pages 343-357.
    13. Huang, Hongyun & Mbanyele, William & Fan, Shuangshuang & Zhao, Xin, 2022. "Digital financial inclusion and energy-environment performance: What can learn from China," Structural Change and Economic Dynamics, Elsevier, vol. 63(C), pages 342-366.
    14. Lin, Boqiang & Zhou, Yicheng, 2021. "How does vertical fiscal imbalance affect the upgrading of industrial structure? Empirical evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 170(C).
    15. Zhang, Shengling & Wang, Yao & Hao, Yu & Liu, Zhiwei, 2021. "Shooting two hawks with one arrow: Could China's emission trading scheme promote green development efficiency and regional carbon equality?," Energy Economics, Elsevier, vol. 101(C).
    16. Ma, Ruiyang & Lin, Boqiang, 2023. "Digitalization and energy-saving and emission reduction in Chinese cities: Synergy between industrialization and digitalization," Applied Energy, Elsevier, vol. 345(C).
    17. Yu, Shasha & Yuan, Xuanyu & Yao, Xinyan & Lei, Ming, 2022. "Carbon leakage and low-carbon performance: Heterogeneity of responsibility perspectives," Energy Policy, Elsevier, vol. 165(C).
    18. Jingdong Zhong, 2019. "Biased Technical Change, Factor Substitution, and Carbon Emissions Efficiency in China," Sustainability, MDPI, vol. 11(4), pages 1-17, February.
    19. Ran, Qiying & Yang, Xiaodong & Yan, Hongchuan & Xu, Yang & Cao, Jianhong, 2023. "Natural resource consumption and industrial green transformation: Does the digital economy matter?," Resources Policy, Elsevier, vol. 81(C).
    20. Zhu, Junpeng & Lin, Boqiang, 2022. "Resource dependence, market-oriented reform, and industrial transformation: Empirical evidence from Chinese cities," Resources Policy, Elsevier, vol. 78(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:286:y:2024:i:c:s0360544223029833. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.