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How to promote energy transition in China: From the perspectives of interregional relocation and environmental regulation

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  • Huang, Lingyun
  • Zou, Yanjun

Abstract

This study investigates the impacts of interregional clean energy relocation and environmental regulation on energy transition with panel data of 30 provinces in China from 1997 to 2015. Instead of applying the production data of clean energy directly as prior studies did, we calculate the actual consumption of clean energy in each region to get more accurate and reliable conclusion. Applying linear, and further, non-linear panel data models, we derive the following conclusions: (1) Interregional electricity relocation (IRET) projects transmit electricity from sending areas to landing areas and have different impacts on energy transition in different areas. Specifically, in landing areas, IRET promotes energy transition but not as significantly as expected, which implies landing areas should try to be more self-sufficient in clean energy instead of relying on interregional relocation completely. In sending areas, IRET has a negative effect on energy transition. Furthermore, IRET impedes energy transition when energy intensity is higher than the threshold value. This suggests that energy efficiency improvement should be paid particular attention, especially in sending regions. (2) Energy-specific environmental regulation has a significant positive impact on energy transition in China. Meanwhile, environmental regulation's impact on energy transition is weakened by high energy intensity.

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  • Huang, Lingyun & Zou, Yanjun, 2020. "How to promote energy transition in China: From the perspectives of interregional relocation and environmental regulation," Energy Economics, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:eneeco:v:92:y:2020:i:c:s0140988320303364
    DOI: 10.1016/j.eneco.2020.104996
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