IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v291y2024ics0360544223035983.html
   My bibliography  Save this article

Is policy uncertainty always harmful? - Empirical evidence from China's energy policy and city green transition

Author

Listed:
  • He, Xiaoping
  • Xu, Cheng

Abstract

Energy policies in all countries are constantly adjusted and change, which leads to policy uncertainty. Thus, as green transition has become an important topic of universal concern across the world, it is necessary to explore the relationship between the two. With a focus on energy policy uncertainty (ENPU), our study investigates the impact of ENPU on green TFP, based on the panel data of China's prefecture-level cities. While the literature generally suggests that policy uncertainty hurts the economy, empirical evidence in this study shows that energy policy uncertainty can be a driving force to city's green transition. The main results are: (a) ENPU has a positive effect on energy efficiency. For every 1 standard deviation increase in the degree of ENPU, green TFP will increase by 0.002 %; (b) The positive effects of ENPU on green TFP exerts heterogeneities with city's resource endowment and environmental pressures, and the effect is significant in growing resource-based cities and light-pressure cities; (c) An increase of ENPU improves green TFP by stimulating corporate innovation and industry upgrading.

Suggested Citation

  • He, Xiaoping & Xu, Cheng, 2024. "Is policy uncertainty always harmful? - Empirical evidence from China's energy policy and city green transition," Energy, Elsevier, vol. 291(C).
    • Handle: RePEc:eee:energy:v:291:y:2024:i:c:s0360544223035983
    DOI: 10.1016/j.energy.2023.130204
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223035983
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.130204?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

    for a different version of it.

    Citations

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


    Cited by:

    1. Zeng, Shihong & Gu, Yuxiao & Su, Bin & Li, Tengfei, 2025. "Energy consumption transition and green total factor productivity in Chinese prefecture-level cities," Energy Economics, Elsevier, vol. 142(C).
    2. Jin, Yousen & Li, He & Lu, Juan, 2024. "How does energy policy uncertainty perception affect corporate greenwashing behaviors? Evidence from China's energy companies," Energy, Elsevier, vol. 306(C).
    3. Erdogan, Sinan & Leirvik, Thomas, 2025. "Investigating the quantile-varying impact of energy policy uncertainty on mineral-driven renewable energy production: Evidence from Germany," Energy, Elsevier, vol. 319(C).
    4. Banerjee, Ameet Kumar & Özer, Zeynep Sueda & Rahman, Molla Ramizur & Sensoy, Ahmet, 2024. "How does the time-varying dynamics of spillover between clean and brown energy ETFs change with the intervention of climate risk and climate policy uncertainty?," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 442-468.
    5. Fang, Yuzhu & Lee, Chi-Chuan & Li, Xinghao, 2025. "Assessing the impact of artificial intelligence on the transition to renewable energy? Analysis of U.S. states under policy uncertainty," Renewable Energy, Elsevier, vol. 246(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:291:y:2024:i:c:s0360544223035983. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.