Can Urban-rural Integration Decrease Energy Intensity? Empirical Study Based on China’s Inter-provincial Data

Shuxing Chen


Southwestern University of Finance and Economics, Chengdu (China)

Renzhong Ding


Southwestern University of Finance and Economics, Chengdu (China)

Biao Li


Southwestern University of Finance and Economics, Chengdu (China)


Abstract

The paper discusses the mathematical relationship of Urban-rural integration and energy intensity based on the production function including capital, labor and energy. Then, the empirical analysis on how it affect energy intensity, on the basis of the static and dynamic panel model with China’s 30 provincial economic data in 2005-2014 years, using four estimation methods – FE, IV-FE, IV-GMM and MG. As part of integration, urbanization, industrialization and technology are found from the empirical results. Firstly, urbanization can significantly reduce energy intensity in short run, while the effect is positive in long term, as China didn’t lastly use the role in saving energy on the process of urbanization. Secondly, industrialization can effectively cut down energy intensity. Thirdly, it is worthy to pay more attention to the ability to improve energy efficiency and lower energy intensity of technology in short and long run.


Keywords:

urban-rural integration, urbanization, industrialization, technology, energy intensity

ALLEN B., XUN Wu, 1999, Foreign direct investment in China’s power sector: trends, benefits and barriers, in: Energy Policy, 1999. 27(12), p. 695-711.
  Google Scholar

ANTONOPOULOS C., SAKELLARIS P., 2009, The contribution of Information and Communication Technology investments to Greek economic growth: An analytical growth accounting framework, in: Information Economics and Policy, 21(3), p. 171-191.
  Google Scholar

ARELLANO M., BOND S., 1991, Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations, in: Review of Economic Studies, 58, p. 277-97.
  Google Scholar

EDENHOFER O. et al., 1998, Power Shifts: The Dynamics of Energy Efficiency, in: Energy Economics, 20, p. 513-537.
  Google Scholar

FISH-VANDEN, JEFFERSON K., 2006, What Is Driving China’s Decline in Energy Intensity?, in: Resource and Energy Economics, 7(26), p. 7-97.
  Google Scholar

GARBACCIO R.F. et al., 1999, Why has the Energy-Output Ratio Fallen in China?, in: Energy Journal, 20(3), p. 63-91.
  Google Scholar

HANSON G.H., 2005, Market Potential, Increasing Returns, and Geographic Concentration, in: Journal of International Economics, 67(1), p. 1-24.
  Google Scholar

HENDERSON J.V., 1986, Efficiency of Resource Usage and City Size, in: Journal of Urban Economics, 19(1): p. 47-70.
  Google Scholar

HENRYSON J. et al., 2000, Energy Efficiency in Buildings Through Information-Swedish Perspective, in: Energy Policy, 23, p. 169-180.
  Google Scholar

JACOBS J., 1969, The Economy of Cities, Random House, New York, p. 116-127.
  Google Scholar

JAFFE A. et al., 1993, Geographic Localization of Knowledge Spillovers as Evidenced by Patent Citations, in: Quarterly Journal of Economic, 108(3), p. 577-598.
  Google Scholar

JONES D.W., 1989, Urbanization and energy use in economic development, in: Energy Journal, 10, p. 29-44.
  Google Scholar

KHAZZOM J.D., 1980, Economic Implication of Mandated Efficiency Standards for Household Appliances, in: Energy Journal, 1, p. 21-39.
  Google Scholar

KAMBARA T., 1992, The Energy Situation in China, in: The China Quarterly, 131, p. 608-636.
  Google Scholar

MARTINEZ-ZARZOSO I., MARUOTTI A., 2011, The impact of urbanization on CO2 emissions: Evidence from developing countries, in: Ecological Economics, 70, p. 1344-1353.
  Google Scholar

NICKELL S., 1981, Biases in dynamic models with fixed effects, in: Econometrica, 49(6), p. 1417-1426.
  Google Scholar

OTAVIA M., JOSLE G., 2002, Foreign Direct Investment and Decoupling Between Energy and Gross Domestic Product in Developing Countries, in: Energy Policy, 30, p. 87-89.
  Google Scholar

PENEDDER M., 2002, Structural Change and Aggregate Growth, WIFO (The Austrian Institute of Economic Research) Working Paper.
  Google Scholar

PESARAN M.H., 2006, Estimation and tecerence in large heterogeneous panels with a multifactor error structure, in: Econometrica, 74, p. 967-1012.
  Google Scholar

PESARAN M.H., SMITH R., 1995, Estimating long-run relationships from dynamic heterogeneous panels, in: Journal of econometrics, 68(1), p. 79-113.
  Google Scholar

PESARAN M.H., SHIN Y., SMITR R.P., 1999, Pooled mean group estimation of dynamic heterogeneous panels, in: Journal of the American Statistical Association, 94(446), p. 621-634.
  Google Scholar

RICHARD G., ADAM B., 1999, The Induced Innovation Hypothesis and Energy- saving Technological Change, in: Quarterly Journal of Economics, 114(3), p. 941-975.
  Google Scholar

SAMUELS et al., 1984, Potential Production of Energy cane for Fuel in the Caribben, in: Energy Progress, 4, p. 249-251.
  Google Scholar

SADORSKY P., 2013, Do urbanization and industrialization affect energy intensity in developing countries?, in: Energy Economics, 37, p. 52-59.
  Google Scholar

SADORSKY P., 2014, The Effect of Urbanization and Industrialization on Energy Use in Emerging Economies: Implications for Sustainable Development, in: American Journal of Economics and Sociology, 73(2), p. 392-409.
  Google Scholar

VU K. M., 2015, ICT as a source of economic growth in the information age: Empirical evidence from the 1996-2005 period, in: Telecommunications Policy, 35, p. 357-372.
  Google Scholar

WELFENS P.J.J., 2002, Interneteconomics.net: macroeconomics, deregulation, and innovation, Springer, New York, p. 78-110.
  Google Scholar

WEI B. R. et al., 2003, Urbanization impaction energy demand and CO2 emission in China, in: Journal of Chongqing University-Eng. Ed, 2(10), p. 46-50.
  Google Scholar

ZHANG H. , BEHRMAN J.R., FAN C., WEI X., ZHANG J., 2014, Does Parental Absence Reduce Cognitive Achievements? Evidence from Rural China, in: Journal of Development Economics, 111, p. 181-195.
  Google Scholar

Download


Published
2018-01-02

Cited by

Chen, S., Ding, R., & Li, B. (2018). Can Urban-rural Integration Decrease Energy Intensity? Empirical Study Based on China’s Inter-provincial Data. Problemy Ekorozwoju, 13(1), 49–58. Retrieved from https://ph.pollub.pl/index.php/preko/article/view/5037

Authors

Shuxing Chen 

Southwestern University of Finance and Economics, Chengdu China

Authors

Renzhong Ding 

Southwestern University of Finance and Economics, Chengdu China

Authors

Biao Li 

Southwestern University of Finance and Economics, Chengdu China

Statistics

Abstract views: 6
PDF downloads: 3