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The Impact of Transportation Infrastructure on Manufacturing Energy Intensity: Micro Evidence from High-Speed Railway in China

Author

Listed:
  • Mian Yang
  • En-Ze Wang

Abstract

This paper examines the potential of infrastructure improvements, particularly the operation of High-speed railway (HSR), to enhance the energy efficiency of firms. By regarding the operation of the China’s HSR as an exogenous shock, this paper relies on a difference-in-differences estimation to isolate the causal effect of the infrastructure improvement on manufacturing firms’ energy intensity. This paper finds that the operation of HSR has improved the manufacturing firms’ energy intensity through the catalyzing the proliferation of advanced management techniques, and this effect gradually decreases with the increase in distance between the firm and the HSR station. Moreover, HSR indirectly decreases energy intensity by fostering technological innovation, decreasing debt financing costs, and extending debt financing magnitude. The study also uncovers heterogeneous effects of HSR connectivity on manufacturing firms’ energy intensity, which are more pronounced in smaller cities and industries characterized by high concentration and low agglomeration. Furthermore, the impact of HSR connectivity on reducing energy intensity is more substantial in state-owned and larger firms compared to non-state-owned and smaller firms. JEL Classification: Q43, O13, R41, L60

Suggested Citation

  • Mian Yang & En-Ze Wang, 2024. "The Impact of Transportation Infrastructure on Manufacturing Energy Intensity: Micro Evidence from High-Speed Railway in China," The Energy Journal, , vol. 45(4), pages 81-107, July.
    • Handle: RePEc:sae:enejou:v:45:y:2024:i:4:p:81-107
    DOI: 10.1177/01956574241281144
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    References listed on IDEAS

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    Cited by:

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    2. Lee, Chien-Chiang & Wang, En-Ze, 2025. "Energy regulation and industrial robot adoption: The role of human capital," Energy Economics, Elsevier, vol. 146(C).

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    Keywords

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    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • R41 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Transportation Economics - - - Transportation: Demand, Supply, and Congestion; Travel Time; Safety and Accidents; Transportation Noise
    • L60 - Industrial Organization - - Industry Studies: Manufacturing - - - General

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