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How Does Energy Misallocation Affect Carbon Emission Efficiency in China? An Empirical Study Based on the Spatial Econometric Model

Author

Listed:
  • Xiaoxiao Chu

    () (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China)

  • Hong Geng

    () (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China)

  • Wen Guo

    () (College of Accounting, Nanjing University of Finance and Economics, Nanjing 210023, China)

Abstract

As an essential factor of production, energy is receiving increased attention. Yet, other than some fundamental policy suggestions towards China’s energy issues, there have been very few investigations into energy misallocation so far. The measurements of energy misallocation index and carbon emission efficiency were made based on the panel data from 30 provinces in China. To empirically study the impact of energy misallocation on carbon emission efficiency, a spatial econometric model was built. It is found that during the survey period, there was a certain degree of energy misallocation in all regions of China, and the differences between the regions were obvious. There is an inverted U-shaped relationship between the impact of energy misallocation and carbon emission efficiency in which intensified allocation distortion accelerates the arrival of the critical point that is not conducive to energy conservation and emission reduction. The results viewed by regions show that due to a low degree o * f misallocation, the impact of carbon emission efficiency in the east region is positive, while that of the central and west regions are mostly negative. Accordingly, it is necessary to accelerate the marketization process of the energy market and improve the ecological quality.

Suggested Citation

  • Xiaoxiao Chu & Hong Geng & Wen Guo, 2019. "How Does Energy Misallocation Affect Carbon Emission Efficiency in China? An Empirical Study Based on the Spatial Econometric Model," Sustainability, MDPI, Open Access Journal, vol. 11(7), pages 1-16, April.
  • Handle: RePEc:gam:jsusta:v:11:y:2019:i:7:p:2115-:d:221293
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    References listed on IDEAS

    as
    1. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, Oxford University Press, vol. 124(4), pages 1403-1448.
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    3. Kaivan Munshi & Mark Rosenzweig, 2016. "Networks and Misallocation: Insurance, Migration, and the Rural-Urban Wage Gap," American Economic Review, American Economic Association, vol. 106(1), pages 46-98, January.
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    5. Inklaar, Robert & Lashitew, Addisu A. & Timmer, Marcel P., 2017. "The Role Of Resource Misallocation In Cross-Country Differences In Manufacturing Productivity," Macroeconomic Dynamics, Cambridge University Press, vol. 21(03), pages 733-756, April.
    6. Anselin, Luc & Bera, Anil K. & Florax, Raymond & Yoon, Mann J., 1996. "Simple diagnostic tests for spatial dependence," Regional Science and Urban Economics, Elsevier, vol. 26(1), pages 77-104, February.
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    More about this item

    Keywords

    energy misallocation; carbon emission efficiency; spatial econometric model;

    JEL classification:

    • Q - Agricultural and Natural Resource Economics; Environmental and Ecological Economics
    • Q0 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - General
    • Q2 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Renewable Resources and Conservation
    • Q3 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Nonrenewable Resources and Conservation
    • Q5 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics
    • Q56 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environment and Development; Environment and Trade; Sustainability; Environmental Accounts and Accounting; Environmental Equity; Population Growth
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products

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