IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v12y2019i11p2194-d238381.html
   My bibliography  Save this article

The Impact of Urbanization and Industrialization on Energy Security: A Case Study of China

Author

Listed:
  • Mu Li

    (Department of Law, School of Law, Humanities and Sociology, Wuhan University of Technology, Wuhan 430070, China)

  • Li Li

    (Department of Law, School of Law, Humanities and Sociology, Wuhan University of Technology, Wuhan 430070, China)

  • Wadim Strielkowski

    (Department of Trade and Finance, Faculty of Economics and Management, Czech University of Life Sciences Prague, Kamýcká 129, 165 00 Prague 6, Prague, Czech Republic)

Abstract

Currently, due to the recent unprecedented urbanization and industrialization, energy consumption in China is increasing at an enormous speed. However, this process should go hand in hand with sustainable energy development that is based on three interconnected dimensions: (i) energy security, (ii) energy affordability, and (iii) environmental sustainability. It becomes very obvious that an increase in energy efficiency leads to the increase in both energy security and environmental sustainability. Therefore, inadequate energy efficiency causes energy security and environmental sustainability issues, and thus negatively influences economic development of China (or any other country for that matter). This paper explores the intrinsic relationship among urbanization, industrialization, and energy security, as well as the influencing mechanisms of urbanization and industrialization on energy efficiency using a fixed effect model. The paper employs panel data from 30 provinces in mainland China collected in the time range from 2006 to 2015. Our results demonstrate that urbanization and industrialization can significantly improve energy efficiency. Although energy security level decreases considerably with the rise of energy consumption and population growth, the increase in urbanization and industrialization levels can increase energy security through energy efficiency improvements. Moreover, it appears that changes in disposable income and population structure do not alter the effects of industrialization and urbanization on energy security. We conclude that Chinese provinces with high and low urbanization levels should focus on technological innovation and increase industrial development and technological input, respectively. Local governments in China can formulate policies and regulations and promote urbanization according to local economic development and industrial and population structure. The paper also presents theoretical references and decision support that might help in developing local laws and regulations promoting energy efficiency during urbanization and industrialization.

Suggested Citation

  • Mu Li & Li Li & Wadim Strielkowski, 2019. "The Impact of Urbanization and Industrialization on Energy Security: A Case Study of China," Energies, MDPI, vol. 12(11), pages 1-22, June.
    • Handle: RePEc:gam:jeners:v:12:y:2019:i:11:p:2194-:d:238381
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/12/11/2194/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/12/11/2194/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Ren, Jingzheng & Sovacool, Benjamin K., 2014. "Quantifying, measuring, and strategizing energy security: Determining the most meaningful dimensions and metrics," Energy, Elsevier, vol. 76(C), pages 838-849.
    2. Grubb, Michael & Butler, Lucy & Twomey, Paul, 2006. "Diversity and security in UK electricity generation: The influence of low-carbon objectives," Energy Policy, Elsevier, vol. 34(18), pages 4050-4062, December.
    3. Sovacool, Benjamin K. & Mukherjee, Ishani, 2011. "Conceptualizing and measuring energy security: A synthesized approach," Energy, Elsevier, vol. 36(8), pages 5343-5355.
    4. Perry Sadorsky, 2014. "The Effect of Urbanization and Industrialization on Energy Use in Emerging Economies: Implications for Sustainable Development," American Journal of Economics and Sociology, Wiley Blackwell, vol. 73(2), pages 392-409, April.
    5. Dorian, James P. & Franssen, Herman T. & Simbeck, Dale R., 2006. "Global challenges in energy," Energy Policy, Elsevier, vol. 34(15), pages 1984-1991, October.
    6. Winzer, Christian, 2012. "Conceptualizing energy security," Energy Policy, Elsevier, vol. 46(C), pages 36-48.
    7. Liddle, Brantley & Lung, Sidney, 2010. "Age-Structure, Urbanization, and Climate Change in Developed Countries: Revisiting STIRPAT for Disaggregated Population and Consumption-Related Environmental Impacts," MPRA Paper 59579, University Library of Munich, Germany.
    8. Jones, Donald W., 1991. "How urbanization affects energy-use in developing countries," Energy Policy, Elsevier, vol. 19(7), pages 621-630, September.
    9. Mulder, Peter & de Groot, Henri L.F., 2012. "Structural change and convergence of energy intensity across OECD countries, 1970–2005," Energy Economics, Elsevier, vol. 34(6), pages 1910-1921.
    10. Liu, Yaobin, 2009. "Exploring the relationship between urbanization and energy consumption in China using ARDL (autoregressive distributed lag) and FDM (factor decomposition model)," Energy, Elsevier, vol. 34(11), pages 1846-1854.
    11. Martchamadol, Jutamanee & Kumar, S., 2012. "Thailand's energy security indicators," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(8), pages 6103-6122.
    12. Beccue, Phillip C. & Huntington, Hillard G. & Leiby, Paul N. & Vincent, Kenneth R., 2018. "An updated assessment of oil market disruption risks," Energy Policy, Elsevier, vol. 115(C), pages 456-469.
    13. Kruyt, Bert & van Vuuren, D.P. & de Vries, H.J.M. & Groenenberg, H., 2009. "Indicators for energy security," Energy Policy, Elsevier, vol. 37(6), pages 2166-2181, June.
    14. Li, Lei & Chi, Ting & Wang, Shi, 2016. "Is energy utilization among Chinese provinces sustainable?," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 198-206.
    15. Richard G. Newell & Adam B. Jaffe & Robert N. Stavins, 1999. "The Induced Innovation Hypothesis and Energy-Saving Technological Change," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 114(3), pages 941-975.
    16. Al-mulali, Usama & Binti Che Sab, Che Normee & Fereidouni, Hassan Gholipour, 2012. "Exploring the bi-directional long run relationship between urbanization, energy consumption, and carbon dioxide emission," Energy, Elsevier, vol. 46(1), pages 156-167.
    17. Bielecki, J., 2002. "Energy security: is the wolf at the door?," The Quarterly Review of Economics and Finance, Elsevier, vol. 42(2), pages 235-250.
    18. Li, Ke & Lin, Boqiang, 2015. "Impacts of urbanization and industrialization on energy consumption/CO2 emissions: Does the level of development matter?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1107-1122.
    19. Zhang, Xing-Ping & Cheng, Xiao-Mei & Yuan, Jia-Hai & Gao, Xiao-Jun, 2011. "Total-factor energy efficiency in developing countries," Energy Policy, Elsevier, vol. 39(2), pages 644-650, February.
    20. Onafowora, Olugbenga A. & Owoye, Oluwole, 2014. "Bounds testing approach to analysis of the environment Kuznets curve hypothesis," Energy Economics, Elsevier, vol. 44(C), pages 47-62.
    21. Indre Siksnelyte & Edmundas Kazimieras Zavadskas & Dalia Streimikiene & Deepak Sharma, 2018. "An Overview of Multi-Criteria Decision-Making Methods in Dealing with Sustainable Energy Development Issues," Energies, MDPI, vol. 11(10), pages 1-21, October.
    22. Frondel, Manuel & Schmidt, Christoph M., 2008. "Measuring Energy Security – A Conceptual Note," Ruhr Economic Papers 52, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    23. Badea, Anca Costescu & Rocco S., Claudio M. & Tarantola, Stefano & Bolado, Ricardo, 2011. "Composite indicators for security of energy supply using ordered weighted averaging," Reliability Engineering and System Safety, Elsevier, vol. 96(6), pages 651-662.
    24. Cabalu, Helen, 2010. "Indicators of security of natural gas supply in Asia," Energy Policy, Elsevier, vol. 38(1), pages 218-225, January.
    25. Kasman, Adnan & Duman, Yavuz Selman, 2015. "CO2 emissions, economic growth, energy consumption, trade and urbanization in new EU member and candidate countries: A panel data analysis," Economic Modelling, Elsevier, vol. 44(C), pages 97-103.
    26. Wu, Gang & Liu, Lan-Cui & Han, Zhi-Yong & Wei, Yi-Ming, 2012. "Climate protection and China’s energy security: Win–win or tradeoff," Applied Energy, Elsevier, vol. 97(C), pages 157-163.
    27. Vivoda, Vlado, 2010. "Evaluating energy security in the Asia-Pacific region: A novel methodological approach," Energy Policy, Elsevier, vol. 38(9), pages 5258-5263, September.
    28. Chester, Lynne, 2010. "Conceptualising energy security and making explicit its polysemic nature," Energy Policy, Elsevier, vol. 38(2), pages 887-895, February.
    29. Domenico Campisi & Simone Gitto & Donato Morea, 2018. "An Evaluation of Energy and Economic Efficiency in Residential Buildings Sector: A Multi-criteria Analisys on an Italian Case Study," International Journal of Energy Economics and Policy, Econjournals, vol. 8(3), pages 185-196.
    30. Ang, B.W. & Choong, W.L. & Ng, T.S., 2015. "Energy security: Definitions, dimensions and indexes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1077-1093.
    31. Poumanyvong, Phetkeo & Kaneko, Shinji, 2010. "Does urbanization lead to less energy use and lower CO2 emissions? A cross-country analysis," Ecological Economics, Elsevier, vol. 70(2), pages 434-444, December.
    32. Mishra, Vinod & Sharma, Susan & Smyth, Russell, 2009. "Are fluctuations in energy consumption per capita transitory? Evidence from a panel of Pacific Island countries," Energy Policy, Elsevier, vol. 37(6), pages 2318-2326, June.
    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. Jing Xu & Dong Chen & Rongrong Liu & Maoxian Zhou & Yunxiao Kong, 2021. "Environmental Regulation, Technological Innovation, and Industrial Transformation: An Empirical Study Based on City Function in China," Sustainability, MDPI, vol. 13(22), pages 1-23, November.
    2. Ling Yang & Kai Zhao & Yankai Zhao & Mengyuan Zhong, 2021. "Identifying Key Factors in Determining Disparities in Energy Consumption in China: A Household Level Analysis," Energies, MDPI, vol. 14(21), pages 1-20, November.
    3. Galina Chebotareva & Inna Čábelková & Wadim Strielkowski & Luboš Smutka & Anna Zielińska-Chmielewska & Stanislaw Bielski, 2023. "The Role of State in Managing the Wind Energy Projects: Risk Assessment and Justification of the Economic Efficiency," Energies, MDPI, vol. 16(12), pages 1-26, June.
    4. Dong, Kangyin & Liu, Yang & Wang, Jianda & Dong, Xiucheng, 2024. "Is the digital economy an effective tool for decreasing energy vulnerability? A global case," Ecological Economics, Elsevier, vol. 216(C).
    5. Antonio Sánchez Cordero & Sergio Gómez Melgar & José Manuel Andújar Márquez, 2019. "Green Building Rating Systems and the New Framework Level(s): A Critical Review of Sustainability Certification within Europe," Energies, MDPI, vol. 13(1), pages 1-25, December.
    6. Herie Park & Sungwoo Bae, 2021. "Quantitative Assessment of Energy Supply Security: Korea Case Study," Sustainability, MDPI, vol. 13(4), pages 1-15, February.
    7. Lee, Chien-Chiang & Yuan, Zihao & Wang, Qiaoru, 2022. "How does information and communication technology affect energy security? International evidence," Energy Economics, Elsevier, vol. 109(C).
    8. Sabyasachi Tripathi, 2021. "Do macroeconomic factors promote urbanization? Evidence from BRICS countries," Asia-Pacific Journal of Regional Science, Springer, vol. 5(2), pages 397-426, June.
    9. Wang, Jiangquan & Nghiem, Xuan-Hoa & Jabeen, Fauzia & Luqman, Adeel & Song, Malin, 2023. "Integrated development of digital and energy industries: Paving the way for carbon emission reduction," Technological Forecasting and Social Change, Elsevier, vol. 187(C).
    10. Arvind Goswami & Harmanpreet Singh Kapoor & Rajesh Kumar Jangir & Caspar Njoroge Ngigi & Behdin Nowrouzi-Kia & Vijay Kumar Chattu, 2023. "Impact of Economic Growth, Trade Openness, Urbanization and Energy Consumption on Carbon Emissions: A Study of India," Sustainability, MDPI, vol. 15(11), pages 1-19, June.
    11. Ponle Henry Kareem & Mumtaz Ali & Turgut Tursoy & Wagdi Khalifa, 2023. "Testing the Effect of Oil Prices, Ecological Footprint, Banking Sector Development and Economic Growth on Energy Consumptions: Evidence from Bootstrap ARDL Approach," Energies, MDPI, vol. 16(8), pages 1-19, April.
    12. Aslam, Naveed & Yang, Wanping & Saeed, Rabia & Ullah, Fahim, 2024. "Energy transition as a solution for energy security risk: Empirical evidence from BRI countries," Energy, Elsevier, vol. 290(C).
    13. Lee, Chien-Chiang & Yuan, Zihao, 2024. "Impact of energy poverty on public health: A non-linear study from an international perspective," World Development, Elsevier, vol. 174(C).
    14. To Trung Thanh & Le Thanh Ha & Hoang Phuong Dung & Tran Thi Lan Huong, 2023. "Impacts of digitalization on energy security: evidence from European countries," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(10), pages 11599-11644, October.

    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. Tete, Komlan H.S. & Soro, Y.M. & Sidibé, S.S. & Jones, Rory V., 2023. "Assessing energy security within the electricity sector in the West African economic and monetary union: Inter-country performances and trends analysis with policy implications," Energy Policy, Elsevier, vol. 173(C).
    2. Ang, B.W. & Choong, W.L. & Ng, T.S., 2015. "Energy security: Definitions, dimensions and indexes," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 1077-1093.
    3. Zhang, Long & Bai, Wuliyasu & Xiao, Huijuan & Ren, Jingzheng, 2021. "Measuring and improving regional energy security: A methodological framework based on both quantitative and qualitative analysis," Energy, Elsevier, vol. 227(C).
    4. Zhang, Long & Yu, Jing & Sovacool, Benjamin K. & Ren, Jingzheng, 2017. "Measuring energy security performance within China: Toward an inter-provincial prospective," Energy, Elsevier, vol. 125(C), pages 825-836.
    5. Wang, Qiang & Zhou, Kan, 2017. "A framework for evaluating global national energy security," Applied Energy, Elsevier, vol. 188(C), pages 19-31.
    6. Gasser, Patrick, 2020. "A review on energy security indices to compare country performances," Energy Policy, Elsevier, vol. 139(C).
    7. Erahman, Qodri Febrilian & Purwanto, Widodo Wahyu & Sudibandriyo, Mahmud & Hidayatno, Akhmad, 2016. "An assessment of Indonesia's energy security index and comparison with seventy countries," Energy, Elsevier, vol. 111(C), pages 364-376.
    8. Abdullah, Fahad Bin & Iqbal, Rizwan & Hyder, Syed Irfan & Jawaid, Mohammad, 2020. "Energy security indicators for Pakistan: An integrated approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    9. Narula, Kapil & Reddy, B. Sudhakara, 2016. "A SES (sustainable energy security) index for developing countries," Energy, Elsevier, vol. 94(C), pages 326-343.
    10. Song, Yan & Zhang, Ming & Sun, Ruifeng, 2019. "Using a new aggregated indicator to evaluate China's energy security," Energy Policy, Elsevier, vol. 132(C), pages 167-174.
    11. Huang, Beijia & Zhang, Long & Ma, Linmao & Bai, Wuliyasu & Ren, Jingzheng, 2021. "Multi-criteria decision analysis of China’s energy security from 2008 to 2017 based on Fuzzy BWM-DEA-AR model and Malmquist Productivity Index," Energy, Elsevier, vol. 228(C).
    12. Li, Jinchao & Wang, Lina & Lin, Xiaoshan & Qu, Shen, 2020. "Analysis of China’s energy security evaluation system: Based on the energy security data from 30 provinces from 2010 to 2016," Energy, Elsevier, vol. 198(C).
    13. Kang, Duan, 2024. "The establishment of evaluation systems and an index for energy superpower," Applied Energy, Elsevier, vol. 356(C).
    14. Franki, Vladimir & Višković, Alfredo, 2015. "Energy security, policy and technology in South East Europe: Presenting and applying an energy security index to Croatia," Energy, Elsevier, vol. 90(P1), pages 494-507.
    15. Lin, Boqiang & Raza, Muhammad Yousaf, 2020. "Analysis of energy security indicators and CO2 emissions. A case from a developing economy," Energy, Elsevier, vol. 200(C).
    16. Tomasz Rokicki & Aleksandra Perkowska, 2021. "Diversity and Changes in the Energy Balance in EU Countries," Energies, MDPI, vol. 14(4), pages 1-19, February.
    17. John A. Paravantis, 2019. "Dimensions, Components and Metrics of Energy Security: Review and Synthesis," SPOUDAI Journal of Economics and Business, SPOUDAI Journal of Economics and Business, University of Piraeus, vol. 69(4), pages 38-52, October-D.
    18. Amin, Sakib Bin & Chang, Youngho & Khan, Farhan & Taghizadeh-Hesary, Farhad, 2022. "Energy security and sustainable energy policy in Bangladesh: From the lens of 4As framework," Energy Policy, Elsevier, vol. 161(C).
    19. Pin Li & Jinsuo Zhang, 2019. "Is China’s Energy Supply Sustainable? New Research Model Based on the Exponential Smoothing and GM(1,1) Methods," Energies, MDPI, vol. 12(2), pages 1-30, January.
    20. Honorata Nyga-Łukaszewska & Kentaka Aruga & Katarzyna Stala-Szlugaj, 2020. "Energy Security of Poland and Coal Supply: Price Analysis," Sustainability, MDPI, vol. 12(6), pages 1-18, March.

    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:gam:jeners:v:12:y:2019:i:11:p:2194-:d:238381. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.