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Pathway to prosperity? The impact of low-carbon energy transition on China's common prosperity

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  • Liu, Yang
  • Dong, Xiucheng
  • Dong, Kangyin

Abstract

Given the ongoing low-carbon energy transition in China, the social, economic, and environmental consequences of this transition cannot be overlooked. Achieving common prosperity is a key component of China's agenda, so it is important to consider the potential nexus between common prosperity and the low-carbon energy transition. Therefore, this study first offers a new comprehensive measure of common prosperity. Furthermore, we examine the impact of the low-carbon energy transition on common prosperity by applying the system-generalized method of moments (SYS-GMM) approach. The key conclusions reached regarding the impact of the low-carbon energy transition on common prosperity are: (1) the degree of common prosperity has continued to increase between 2006 and 2019; (2) the low-carbon energy transition significantly promotes common prosperity; (3) the low-carbon energy transition indirectly promotes common prosperity by expanding gross fixed capital formation, improving labor productivity, and promoting industrial structure upgrading; and (4) the low-carbon energy transition has a significantly stronger impact on common prosperity in provinces with higher levels of low-carbon energy transition and common prosperity. Finally, we suggest several policy implications for promoting low-carbon energy transition and common prosperity.

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  • Liu, Yang & Dong, Xiucheng & Dong, Kangyin, 2023. "Pathway to prosperity? The impact of low-carbon energy transition on China's common prosperity," Energy Economics, Elsevier, vol. 124(C).
    • Handle: RePEc:eee:eneeco:v:124:y:2023:i:c:s0140988323003171
    DOI: 10.1016/j.eneco.2023.106819
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    More about this item

    Keywords

    Common prosperity; Low-carbon energy transition; Mediating effects; SYS-GMM technique; China;
    All these keywords.

    JEL classification:

    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • D63 - Microeconomics - - Welfare Economics - - - Equity, Justice, Inequality, and Other Normative Criteria and Measurement
    • E61 - Macroeconomics and Monetary Economics - - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook - - - Policy Objectives; Policy Designs and Consistency; Policy Coordination
    • H53 - Public Economics - - National Government Expenditures and Related Policies - - - Government Expenditures and Welfare Programs
    • O21 - Economic Development, Innovation, Technological Change, and Growth - - Development Planning and Policy - - - Planning Models; Planning Policy

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