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Effect of climate change adaptation on energy productivity: evidence from China

Author

Listed:
  • Yantuan Yu

    (Guangdong University of Foreign Studies)

  • Ling Liu

    (Central South University of Forestry and Technology)

  • Yayun Ren

    (Guizhou University of Finance and Economics)

Abstract

A simple theoretical model is proposed to predict how climate change adaptation affects energy productivity. Using a longitudinal panel dataset encompassing 251 Chinese cities from 2005 to 2020, this study conducts an empirical assessment of climate change adaptation policy (CCAP) on energy productivity through a quasi-natural experimental framework. Empirical findings suggest that the implementation of CCAP has significantly increased energy productivity, with an estimated effect of approximately 13.3%. Moreover, heterogeneity analysis shows that energy productivity improvements are more pronounced in eastern coastal regions, non-TCZ, and high-temperature cities compared to their counterparts. Finally, mechanism analysis indicates that CCAP increases energy productivity through improved financial inclusion.

Suggested Citation

  • Yantuan Yu & Ling Liu & Yayun Ren, 2025. "Effect of climate change adaptation on energy productivity: evidence from China," Economic Change and Restructuring, Springer, vol. 58(4), pages 1-22, August.
    • Handle: RePEc:kap:ecopln:v:58:y:2025:i:4:d:10.1007_s10644-025-09894-z
    DOI: 10.1007/s10644-025-09894-z
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    More about this item

    Keywords

    Climate change adaptation policy; Energy productivity; Difference-in-differences; Financial inclusion; Heterogeneous effects;
    All these keywords.

    JEL classification:

    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • 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
    • R51 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Regional Government Analysis - - - Finance in Urban and Rural Economies

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