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Can the energy transition drive economic development? Empirical analysis of China's provincial panel data

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  • Liu, Guangqiang
  • Xu, Weiju
  • Nguyen, Quang Minh

Abstract

With the rise of global environmental awareness and increasing concern about the impacts of climate change, the energy transition has become a pressing issue worldwide. However, in existing studies, the conclusions on the impact of the energy transition on economic development are not consistent. Given these discrepancies and the complexity of the influencing factors in the process of energy transition, the study of the relationship between energy transition and economic development has important theoretical and practical significance for energy policy and economic planning in China and globally. By utilizing provincial panel data from 2000 to 2019 in China and constructing an econometric model, this study empirically examines the influence of the energy transition on economic development. The results show that the energy transition is beneficial for China's economic development. Furthermore, regional heterogeneity significantly stimulates economic development through the upgrading of industrial structure, technological innovation, and environmental regulation. This study provides important empirical evidence and a quantitative basis for actively and steadily promoting the energy transition while considering economic growth.

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  • Liu, Guangqiang & Xu, Weiju & Nguyen, Quang Minh, 2024. "Can the energy transition drive economic development? Empirical analysis of China's provincial panel data," Technological Forecasting and Social Change, Elsevier, vol. 206(C).
    • Handle: RePEc:eee:tefoso:v:206:y:2024:i:c:s0040162524003378
    DOI: 10.1016/j.techfore.2024.123541
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