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The road to sustainable development: Can the new energy demonstration city policy promote the industrial structure transformation?

Author

Listed:
  • Liu, Jiamin
  • Zhang, Jiaoning
  • Ma, Xiaoyu
  • Zhao, Bin
  • Zhang, Mengyu

Abstract

Renewable energy plays a key role in sustainable development. The goal of the new energy demonstration city policy (NED) in China is to optimize the energy structure and improve the Pareto state between “economic development” and “environmental quality”. Based on theoretical analysis, panel data from 284 prefectural-level cities and above in China from 2005 to 2021 are used for empirical tests. Results indicates that NED is a driving force of industrial structure transformation (TIS). Compared with non-pilot cities, NED leads to an average increase of 41.216 % in TIS within the pilot cities. Human capital mobility, technological innovation, and energy constraints are vital influential channels. The result also demonstrates that the positive impact of NED on TIS is effective in the eastern, central, and resource-based cities. NED has significant positive spatial spillover effects on TIS. This effect is only effective in the range of 0–300 KM. In the range of 400 to 600 KM, NED has a negative spatial spillover effect. 600 KM is the threshold of the spatial spillover effect of NED, which is consistent with the distance decay theory. Findings provide policy implications for the governments to formulate more practical and specific new energy development strategies.

Suggested Citation

  • Liu, Jiamin & Zhang, Jiaoning & Ma, Xiaoyu & Zhao, Bin & Zhang, Mengyu, 2024. "The road to sustainable development: Can the new energy demonstration city policy promote the industrial structure transformation?," Renewable Energy, Elsevier, vol. 237(PB).
    • Handle: RePEc:eee:renene:v:237:y:2024:i:pb:s0960148124017890
    DOI: 10.1016/j.renene.2024.121721
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