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

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.