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The impact of new energy demonstration area policy on green total factor energy efficiency: An extension of ecological modernization theory

Author

Listed:
  • Yang, Bai
  • Huang, Jingfeng
  • Chen, Yinzhong

Abstract

Improving energy efficiency is critical for achieving a low-carbon transition and sustainable economic development. As a strategic initiative to optimize the energy mix, China's New Energy Demonstration Area (NEDA) policy aims to boost urban energy efficiency via institutional reform, technological innovation, and industrial upgrading. Based on panel data from Chinese cities, this study employs a difference-in-differences (DID) model to evaluate the impact of the NEDA policy on green total factor energy efficiency (GTFEE). Grounded in Ecological Modernization Theory, we theoretically integrate industrial structure upgrading as a distinct transmission channel alongside institutional and technological pathways. Empirical results demonstrate that the NEDA policy significantly enhances urban GTFEE, with more pronounced effects in coastal and economically developed regions. Mechanism analysis further reveals that institutional reform, technological innovation, and industrial structure upgrading serve as effective transmission channels. This study extends the empirical application of Ecological Modernization Theory and offers insights for tailoring energy transition policies to regional contexts.

Suggested Citation

  • Yang, Bai & Huang, Jingfeng & Chen, Yinzhong, 2026. "The impact of new energy demonstration area policy on green total factor energy efficiency: An extension of ecological modernization theory," Energy, Elsevier, vol. 352(C).
    • Handle: RePEc:eee:energy:v:352:y:2026:i:c:s0360544226010145
    DOI: 10.1016/j.energy.2026.140909
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    JEL classification:

    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • O38 - Economic Development, Innovation, Technological Change, and Growth - - Innovation; Research and Development; Technological Change; Intellectual Property Rights - - - Government Policy
    • O44 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Environment and Growth
    • P18 - Political Economy and Comparative Economic Systems - - Capitalist Economies - - - Energy; Environment

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