IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v138y2024ics0140988324005589.html
   My bibliography  Save this article

The effects of long–distance power transmission on employment growth: Empirical evidence from ultra–high voltage projects of China

Author

Listed:
  • Zhao, Li
  • Gao, Zhengye
  • Ren, Shenggang

Abstract

Long–distance power transmission is a crucial solution for alleviating the uneven distribution of energy and promoting economic development. This work is the first to provide an estimate of the benefits to employment of long–distance power transmission. Using unique data from the China National Tax Survey Database for the years 2007–2016, we utilized ultra–high voltage (UHV) project of China as an exogenous shock to investigate how long–distance power transmission affects firms' labor demand by employing the difference–in–differences method. We found that the UHV system significantly increased firms' labor demand. A mechanism analysis suggested that the UHV system did this mainly by facilitating firm entry and expanding firm production scale. A heterogeneity analysis indicated that, compared with provinces with low grid reliability and grid capacity, firms in provinces with high grid reliability and grid capacity exhibited a stronger response to the UHV system in terms of labor demand. Our research findings provide a new solution for countries to balance resource distribution, energy transition, and employment growth.

Suggested Citation

  • Zhao, Li & Gao, Zhengye & Ren, Shenggang, 2024. "The effects of long–distance power transmission on employment growth: Empirical evidence from ultra–high voltage projects of China," Energy Economics, Elsevier, vol. 138(C).
    • Handle: RePEc:eee:eneeco:v:138:y:2024:i:c:s0140988324005589
    DOI: 10.1016/j.eneco.2024.107850
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988324005589
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2024.107850?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:138:y:2024:i:c:s0140988324005589. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.