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Can the emphasis of local governments on the ecological environment fix energy resource misallocation? Mechanisms and environmental results

Author

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  • Zhao, Bingyu
  • Hu, Haiqing
  • Yang, Tan

Abstract

Addressing energy resource misallocation (EM) is critical for achieving sustainable development in China. Since the 11th Five-Year Plan integrated green development targets into leadership assessments, government attention has increasingly focused on ecological environment, influencing environmental policies and incentives. However, the impact of governmental attention to ecological environment (GEEE) on EM remains underexplored. This study constructs a framework to measure and explore the relationship between GEEE and EM using panel data from Chinese provinces during 2007–2019, employing a Cobb-Douglas production function model, natural language processing of government work reports, and empirical estimation methods. The results reveal that GEEE significantly mitigates EM, with an 0.1834-unit reduction in EM for every 1 % increase in GEEE and 0.29 % contribution for future impact. The alleviating effects vary across regions since differences in the dependency of natural resource and economical development; and it is strengthened by greater innovation vitality and green finance development. Moreover, higher GEEE not only curbs EM in neighboring areas but also reduces multiple pollutants by alleviating regional EM. This study offers a novel perspective on alleviating EM from augmenting GEEE, enriches the academic understanding of the interplay among GEEE and EM, and provides insights for policymakers in designing sustainable development strategies.

Suggested Citation

  • Zhao, Bingyu & Hu, Haiqing & Yang, Tan, 2026. "Can the emphasis of local governments on the ecological environment fix energy resource misallocation? Mechanisms and environmental results," Energy, Elsevier, vol. 344(C).
  • Handle: RePEc:eee:energy:v:344:y:2026:i:c:s0360544226002045
    DOI: 10.1016/j.energy.2026.140102
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