IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v182y2023ics0301421523003257.html
   My bibliography  Save this article

China's technological spillover effect on the energy efficiency of the BRI countries

Author

Listed:
  • Adekoya, Oluwasegun B.
  • Oliyide, Johnson A.
  • Kenku, Oluwademilade T.
  • Ajayi, Oluwafisayo F.

Abstract

Given the rising technological progress and infrastructural developments among the Belt and Road Initiative (BRI) countries and the global move towards a reduction in the use of fossil fuels to mitigate climate change, this study aims to examine the role of technological innovation in the countries' energy efficiency to. We discover that energy intensity is increased by endogenous technological innovation in the BRI countries, especially at the middle and higher quantiles. We then remove China from the panel in order to check if the country's high technological advancement and energy efficiency might have an outlying influence on the relationship. Except for a relative decline in the significant estimates across the quantiles, the direction of effect largely remains. Finally, China's technological innovation has a reducing spillover effect on the energy intensity of the BRI countries. These findings indicate that, while endogenous technological innovations are detrimental to the energy efficiency of the BRI countries, China's technologies are energy efficient for the other BRI countries, and should be adopted or absorbed to reduce dependence on fossil fuels.

Suggested Citation

  • Adekoya, Oluwasegun B. & Oliyide, Johnson A. & Kenku, Oluwademilade T. & Ajayi, Oluwafisayo F., 2023. "China's technological spillover effect on the energy efficiency of the BRI countries," Energy Policy, Elsevier, vol. 182(C).
    • Handle: RePEc:eee:enepol:v:182:y:2023:i:c:s0301421523003257
    DOI: 10.1016/j.enpol.2023.113740
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421523003257
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2023.113740?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.

    References listed on IDEAS

    as
    1. Sun, Huaping & Edziah, Bless Kofi & Kporsu, Anthony Kwaku & Sarkodie, Samuel Asumadu & Taghizadeh-Hesary, Farhad, 2021. "Energy efficiency: The role of technological innovation and knowledge spillover," Technological Forecasting and Social Change, Elsevier, vol. 167(C).
    2. Wong, Siang Leng & Chang, Youngho & Chia, Wai-Mun, 2013. "Energy consumption, energy R&D and real GDP in OECD countries with and without oil reserves," Energy Economics, Elsevier, vol. 40(C), pages 51-60.
    3. Uddin, Md. Kamal & Pan, Xiongfeng & Saima, Umme & Zhang, Chengming, 2022. "Influence of financial development on energy intensity subject to technological innovation: Evidence from panel threshold regression," Energy, Elsevier, vol. 239(PD).
    4. Lin, Boqiang & Zhu, Junpeng, 2021. "Impact of China's new-type urbanization on energy intensity: A city-level analysis," Energy Economics, Elsevier, vol. 99(C).
    5. Pedroni, Peter, 2004. "Panel Cointegration: Asymptotic And Finite Sample Properties Of Pooled Time Series Tests With An Application To The Ppp Hypothesis," Econometric Theory, Cambridge University Press, vol. 20(3), pages 597-625, June.
    6. Li, Ke & Lin, Boqiang, 2018. "How to promote energy efficiency through technological progress in China?," Energy, Elsevier, vol. 143(C), pages 812-821.
    7. Jackson, Karen & Shepotylo, Oleksandr, 2021. "Belt and road: The China dream?," China Economic Review, Elsevier, vol. 67(C).
    8. Usman Akbar & József Popp & Hameed Khan & Muhammad Asif Khan & Judit Oláh, 2020. "Energy Efficiency in Transportation along with the Belt and Road Countries," Energies, MDPI, vol. 13(10), pages 1-20, May.
    9. Md. Shafiqul Islam, 2021. "Dynamics of energy use, technological innovation, economic growth, and trade openness in Bangladesh," Economics Bulletin, AccessEcon, vol. 41(3), pages 997-1008.
    10. Koenker, Roger, 2004. "Quantile regression for longitudinal data," Journal of Multivariate Analysis, Elsevier, vol. 91(1), pages 74-89, October.
    11. Zhang, Hongyan & Chen, Suisui & Wang, Shuhong, 2022. "Impact of economic growth and labor productivity dispersion on energy intensity in China," Energy, Elsevier, vol. 242(C).
    12. Chen, Maozhi & Sinha, Avik & Hu, Kexiang & Shah, Muhammad Ibrahim, 2021. "Impact of technological innovation on energy efficiency in industry 4.0 era: Moderation of shadow economy in sustainable development," Technological Forecasting and Social Change, Elsevier, vol. 164(C).
    13. Joakim Westerlund, 2005. "New Simple Tests for Panel Cointegration," Econometric Reviews, Taylor & Francis Journals, vol. 24(3), pages 297-316.
    14. Baryshnikova, Nadezhda V. & Pham, Ngoc T.A., 2019. "Natural disasters and mental health: A quantile approach," Economics Letters, Elsevier, vol. 180(C), pages 62-66.
    15. Karali, Nihan & Park, Won Young & McNeil, Michael, 2017. "Modeling technological change and its impact on energy savings in the U.S. iron and steel sector," Applied Energy, Elsevier, vol. 202(C), pages 447-458.
    16. Rajbhandari, Ashish & Zhang, Fan, 2018. "Does energy efficiency promote economic growth? Evidence from a multicountry and multisectoral panel dataset," Energy Economics, Elsevier, vol. 69(C), pages 128-139.
    17. Schulhof, Vera & van Vuuren, Detlef & Kirchherr, Julian, 2022. "The Belt and Road Initiative (BRI): What Will it Look Like in the Future?," Technological Forecasting and Social Change, Elsevier, vol. 175(C).
    18. Payne, James E. & Truong, Huong Hoang Diep & Chu, Lan Khanh & Doğan, Buhari & Ghosh, Sudeshna, 2023. "The effect of economic complexity and energy security on measures of energy efficiency: Evidence from panel quantile analysis," Energy Policy, Elsevier, vol. 177(C).
    19. Qi, Shaozhou & Peng, Huarong & Zhang, Xiaoling & Tan, Xiujie, 2019. "Is energy efficiency of Belt and Road Initiative countries catching up or falling behind? Evidence from a panel quantile regression approach," Applied Energy, Elsevier, vol. 253(C), pages 1-1.
    20. Peter Pedroni, 1999. "Critical Values for Cointegration Tests in Heterogeneous Panels with Multiple Regressors," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 61(S1), pages 653-670, November.
    21. João Gabriel Pio & Eduardo Gonçalves & Claúdio R. F. Vasconcelos, 2021. "Technology Spillovers Through Exports: Empirical Evidence for the Chinese Case," Journal of Industry, Competition and Trade, Springer, vol. 21(3), pages 423-443, September.
    22. Voigt, Sebastian & De Cian, Enrica & Schymura, Michael & Verdolini, Elena, 2014. "Energy intensity developments in 40 major economies: Structural change or technology improvement?," Energy Economics, Elsevier, vol. 41(C), pages 47-62.
    23. Xiao Ruan & Yapa Mahinda Bandara & Jun-Yeop Lee & Paul Tae-Woo Lee & Prem Chhetri, 2019. "Impacts of the Belt and Road Initiative in the Indian subcontinent under future port development scenarios," Maritime Policy & Management, Taylor & Francis Journals, vol. 46(8), pages 905-919, November.
    24. Kong, Qunxi & Chen, Afei & Shen, Chenrong & Wong, Zoey, 2021. "Has the Belt and Road Initiative improved the quality of economic growth in China's cities?," International Review of Economics & Finance, Elsevier, vol. 76(C), pages 870-883.
    25. Quito, Byron & del Río-Rama, María de la Cruz & Álvarez- García, José & Bekun, Festus Victor, 2023. "Spatiotemporal influencing factors of energy efficiency in 43 european countries: A spatial econometric analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 182(C).
    26. Mohd Haizam Mohd Saudi & Obsatar Sinaga & Djoko Roespinoedji & Erlane K. Ghani, 2019. "The Impact of Technological Innovation on Energy Intensity: Evidence from Indonesia," International Journal of Energy Economics and Policy, Econjournals, vol. 9(3), pages 11-17.
    27. Koenker, Roger W & Bassett, Gilbert, Jr, 1978. "Regression Quantiles," Econometrica, Econometric Society, vol. 46(1), pages 33-50, January.
    28. Khan, Anwar & Chenggang, Yang & Hussain, Jamal & Kui, Zhou, 2021. "Impact of technological innovation, financial development and foreign direct investment on renewable energy, non-renewable energy and the environment in belt & Road Initiative countries," Renewable Energy, Elsevier, vol. 171(C), pages 479-491.
    29. Malinauskaite, Jurgita & Jouhara, Hussam & Egilegor, Bakartxo & Al-Mansour, Fouad & Ahmad, Lujean & Pusnik, Matevz, 2020. "Energy efficiency in the industrial sector in the EU, Slovenia, and Spain," Energy, Elsevier, vol. 208(C).
    30. Antonietti, Roberto & Fontini, Fulvio, 2019. "Does energy price affect energy efficiency? Cross-country panel evidence," Energy Policy, Elsevier, vol. 129(C), pages 896-906.
    31. Herrerias, M.J. & Cuadros, A. & Luo, D., 2016. "Foreign versus indigenous innovation and energy intensity: Further research across Chinese regions," Applied Energy, Elsevier, vol. 162(C), pages 1374-1384.
    32. Huang, Yiping, 2016. "Understanding China's Belt & Road Initiative: Motivation, framework and assessment," China Economic Review, Elsevier, vol. 40(C), pages 314-321.
    33. Li, Ke & Lin, Boqiang, 2017. "An application of a double bootstrap to investigate the effects of technological progress on total-factor energy consumption performance in China," Energy, Elsevier, vol. 128(C), pages 575-585.
    34. David Powell, 2022. "Quantile regression with nonadditive fixed effects," Empirical Economics, Springer, vol. 63(5), pages 2675-2691, November.
    35. Foo, Nam & Lean, Hooi Hooi & Salim, Ruhul, 2020. "The impact of China’s one belt one road initiative on international trade in the ASEAN region," The North American Journal of Economics and Finance, Elsevier, vol. 54(C).
    36. repec:bla:obuest:v:61:y:1999:i:0:p:653-70 is not listed on IDEAS
    37. Tang, Chang & Xu, Yuanyuan & Hao, Yu & Wu, Haitao & Xue, Yan, 2021. "What is the role of telecommunications infrastructure construction in green technology innovation? A firm-level analysis for China," Energy Economics, Elsevier, vol. 103(C).
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Liu, Jiaguo & Meng, Hui, 2024. "Can China railway express enhance the economic-trade vitality of cities? A spatial empirical evidence from China," Transport Policy, Elsevier, vol. 150(C), pages 121-138.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Adekoya, Oluwasegun B. & Kenku, Oluwademilade T. & Oliyide, Johnson A. & Al-Faryan, Mamdouh Abdulaziz Saleh & Ogunjemilua, Oluwafemi D., 2023. "Does economic complexity drive energy efficiency and renewable energy transition?," Energy, Elsevier, vol. 278(C).
    2. Zhang, Hui & Zhou, Peng & Sun, Xiumei & Ni, Guanqun, 2024. "Disparities in energy efficiency and its determinants in Chinese cities: From the perspective of heterogeneity," Energy, Elsevier, vol. 289(C).
    3. Li, Zhiyuan & Patel, Nikunj & Liu, Jiayang & Kautish, Pradeep, 2023. "Natural resources-environmental sustainability-socio-economic drivers nexus: Insights from panel quantile regression analysis," Resources Policy, Elsevier, vol. 86(PB).
    4. Guang, Fengtao & He, Yongxiu & Wen, Le & Sharp, Basil, 2019. "Energy intensity and its differences across China’s regions: Combining econometric and decomposition analysis," Energy, Elsevier, vol. 180(C), pages 989-1000.
    5. Inuwa, Nasiru & Adamu, Sagir & Hamza, Yusuf & Sani, Mohammed Bello, 2023. "Does dichotomy between resource dependence and resource abundance matters for resource curse hypothesis? New evidence from quantiles via moments," Resources Policy, Elsevier, vol. 81(C).
    6. Bashir, Muhammad Farhan & MA, Benjiang & Shahbaz, Muhammad & Shahzad, Umer & Vo, Xuan Vinh, 2021. "Unveiling the heterogeneous impacts of environmental taxes on energy consumption and energy intensity: Empirical evidence from OECD countries," Energy, Elsevier, vol. 226(C).
    7. Umer Jeelanie Banday & Mustafa Kocoglu, 2023. "Modelling Simultaneous Relationships Between Human Development, Energy, and Environment: Fresh Evidence from Panel Quantile Regression," Journal of the Knowledge Economy, Springer;Portland International Center for Management of Engineering and Technology (PICMET), vol. 14(2), pages 1559-1581, June.
    8. Payne, James E. & Truong, Huong Hoang Diep & Chu, Lan Khanh & Doğan, Buhari & Ghosh, Sudeshna, 2023. "The effect of economic complexity and energy security on measures of energy efficiency: Evidence from panel quantile analysis," Energy Policy, Elsevier, vol. 177(C).
    9. Chao-Qun Ma & Jiang-Long Liu & Yi-Shuai Ren & Yong Jiang, 2019. "The Impact of Economic Growth, FDI and Energy Intensity on China’s Manufacturing Industry’s CO 2 Emissions: An Empirical Study Based on the Fixed-Effect Panel Quantile Regression Model," Energies, MDPI, vol. 12(24), pages 1-16, December.
    10. Shao, Jun & Wang, Lianghu, 2023. "Can new-type urbanization improve the green total factor energy efficiency? Evidence from China," Energy, Elsevier, vol. 262(PB).
    11. Anwar, Ahsan & Siddique, Muhammad & Eyup Dogan, & Sharif, Arshian, 2021. "The moderating role of renewable and non-renewable energy in environment-income nexus for ASEAN countries: Evidence from Method of Moments Quantile Regression," Renewable Energy, Elsevier, vol. 164(C), pages 956-967.
    12. Yu, Yantuan & Chen, Xudong & Zhang, Ning, 2022. "Innovation and energy productivity: An empirical study of the innovative city pilot policy in China✰," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    13. Yu, Shiwei & Liu, Jie & Hu, Xing & Tian, Peng, 2022. "Does development of renewable energy reduce energy intensity? Evidence from 82 countries," Technological Forecasting and Social Change, Elsevier, vol. 174(C).
    14. Jin, Taeyoung, 2022. "The evolutionary renewable energy and mitigation impact in OECD countries," Renewable Energy, Elsevier, vol. 189(C), pages 570-586.
    15. Song, Chenchen & Wu, Zhendong & Dong, Rebecca Kechen & Dinçer, Hasan, 2023. "Greening south Asia: Investing in sustainability and innovation to preserve natural resources and combat environmental pollution," Resources Policy, Elsevier, vol. 86(PB).
    16. Shan, Haipeng & Wong, Wing-Keung & Hu, Haichuan & Shraah, Ata Al & Alromaihi, Abdullah & The Cong, Phan & Thi Minh Uyen, Pham, 2024. "Fintech innovation for sustainable environment: Understanding the role of natural resources and human capital in BRICS using MMQR," Resources Policy, Elsevier, vol. 88(C).
    17. Bano, Sadia & Liu, Lu & Khan, Anwar, 2022. "Dynamic influence of aging, industrial innovations, and ICT on tourism development and renewable energy consumption in BRICS economies," Renewable Energy, Elsevier, vol. 192(C), pages 431-442.
    18. Hosan, Shahadat & Sen, Kanchan Kumar & Rahman, Md Matiar & Chapman, Andrew J. & Karmaker, Shamal Chandra & Alam, Mohammad Jahangir & Saha, Bidyut Baran, 2024. "Energy innovation funding and social equity: Mediating role of just energy transition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 197(C).
    19. Neil A. Wilmot & Ariuna Taivan, 2021. "Examining the Impact of Financial Development on Energy Production in Emerging Economies," JRFM, MDPI, vol. 14(2), pages 1-17, February.
    20. Hosan, Shahadat & Rahman, Md Matiar & Karmaker, Shamal Chandra & Saha, Bidyut Baran, 2023. "Energy subsidies and energy technology innovation: Policies for polygeneration systems diffusion," Energy, Elsevier, vol. 267(C).

    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:enepol:v:182:y:2023:i:c:s0301421523003257. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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/enpol .

    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.