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Technological innovation and its influence on energy risk management: Unpacking China’s energy consumption structure optimisation amidst climate change

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  • Zhang, Dongyang
  • Zhao, Mengjiao
  • Wang, Yizhi
  • Vigne, Samuel A.
  • Benkraiem, Ramzi

Abstract

In the context of intensifying climate challenges, adept energy risk management is more pertinent than ever. This research pioneers an in-depth exploration into China’s pronounced reliance on high-polluting fossil fuels, utilising a decade’s worth of provincial data (2010–2020) to shed light on the intricate dynamics between technological innovation and energy consumption structure refinement. Notably, our findings unveil that technological advancements act as catalysts in streamlining energy consumption structures, serving as a bulwark against emergent climate-related risks. Yet, this positive trajectory is not immune to disruptions: volatility in crude oil futures prices has the potential to dampen these benefits, ushering in heightened financial risks. Our work further underscores pronounced regional variances; technological innovation yields diminished returns in the central and western regions compared to their eastern counterparts. An intriguing observation is the resilience exhibited by coal-dependent provinces to technological evolution, pointing towards entrenched energy infrastructure challenges. Crucially, this study is among the first to identify the dual roles of industrial structure evolution and energy pricing dynamics as mediators in energy risk management. Drawing from these insights, we advocate for a proactive harnessing of technological innovation, not merely as a tool, but as an imperative to drive China’s energy transformation, foster sustainable consumption, and lay the foundation for a fortified green and low-carbon technological ecosystem.

Suggested Citation

  • Zhang, Dongyang & Zhao, Mengjiao & Wang, Yizhi & Vigne, Samuel A. & Benkraiem, Ramzi, 2024. "Technological innovation and its influence on energy risk management: Unpacking China’s energy consumption structure optimisation amidst climate change," Energy Economics, Elsevier, vol. 131(C).
    • Handle: RePEc:eee:eneeco:v:131:y:2024:i:c:s014098832400029x
    DOI: 10.1016/j.eneco.2024.107321
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    3. Wang, Junling & Guo, Xinyu & Rong, Xueyun & Wang, Zehao, 2024. "Medical service reform and government regulation in electric power enterprises from the perspective of health economics," Finance Research Letters, Elsevier, vol. 63(C).
    4. Zhang, Yingying & Feng, Nianqiao & Wang, Xinpeng, 2024. "Can the green finance pilot policy promote the low-carbon transformation of the economy？," International Review of Economics & Finance, Elsevier, vol. 93(PA), pages 1074-1086.
    5. Zhang, Xiaojing & Khan, Khalid & Shao, Xuefeng & Oprean-Stan, Camelia & Zhang, Qian, 2024. "The rising role of artificial intelligence in renewable energy development in China," Energy Economics, Elsevier, vol. 132(C).
    6. Wang, Ziqi & Li, Rongrong & Kong, Qunxi, 2024. "Shanghai oil futures prices and firms' investment decisions: Evidence from Chinese manufacturing firms," Energy Economics, Elsevier, vol. 134(C).

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    More about this item

    Keywords

    Technological innovation; Energy risk management; Energy consumption optimisation; Regional risk exposure; Energy transition strategies;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q55 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Environmental Economics: Technological Innovation
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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