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The Impact of Electricity Consumption on Green Total Factor Productivity: Evidence from Chinese Provinces

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  • Shen Zhong

    (Harbin University of Commerce)

  • Yu’an Fang

    (Harbin University of Commerce)

Abstract

Under the constraints of the “dual carbon” goals, improving green total factor productivity (GTFP) has become an important guarantee for reducing reliance on resources and changing the development model to achieve long-term stable growth of China’s economy. This paper uses the SBM model to calculate the GTFP of 30 provinces (municipalities and regions) in China from 2011 to 2020. The empirical results show that (1) electricity consumption has a significant negative impact on GTFP, but looking at the decomposition of the GTFP index, electricity consumption inhibits green technical efficiency while promoting green technological progress. (2) Electricity consumption can mitigate its negative effect on GTFP by enhancing the level of technological innovation. (3) Comparing different time periods, due to the increased intensity of environmental regulation, electricity consumption promotes the improvement of GTFP; however, when looking at different geographical locations, electricity consumption in China’s central and western regions exacerbates the hindering effect on GTFP. (4) The dynamic threshold model reveals that there is a double-threshold effect of electricity consumption on GTFP based on the level of industrial structure. The research in this paper provides theoretical support for advancing the green and high-quality development of China’s economy.

Suggested Citation

  • Shen Zhong & Yu’an Fang, 2025. "The Impact of Electricity Consumption on Green Total Factor Productivity: Evidence from Chinese Provinces," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 16(1), pages 3921-3947, March.
    • Handle: RePEc:spr:jknowl:v:16:y:2025:i:1:d:10.1007_s13132-024-01949-2
    DOI: 10.1007/s13132-024-01949-2
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