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Does Renewable Energy Consumption Successfully Promote the Green Transformation of China’s Industry?

Author

Listed:
  • Dongri Han

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

  • Tuochen Li

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

  • Shaosong Feng

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

  • Ziyi Shi

    (School of Economics and Management, Harbin Engineering University, Harbin 150001, China)

Abstract

The trade-off between economic growth and ecological improvement has always become an important and difficult issue for many countries, especially for developing countries. Due to a long-term extensive economic growth pattern, the regional resource allocation deviates from the optimal, especially the existence of energy misallocation, which hinders the maximization of economic output. Therefore, considering the characteristics and heterogeneity of resource endowments in different regions and increasing renewable energy consumption, that is, promoting energy transition, is it capable of sustainable development under China’s actual conditions? The exploration of the issue is a core step in the research of the impact of renewable energy on industrial green transformation. Based on the panel data of 30 regions in China from 2009 to 2016, this paper constructs a threshold model from the perspective of regional energy misallocation and empirically tests the nonlinear mechanism of renewable energy consumption to promote industrial green transformation. The results show that China’s energy allocation efficiency is low, there is a certain misallocation phenomenon, and the improvement effect in recent years is not satisfactory. Further, the relationship between renewable energy consumption and industrial green transformation is not a simple linear relationship, but a double threshold effect due to regional energy misallocation. In areas with severe energy misallocation, renewable energy consumption does not have a significant boost to industrial green transformation. Finally, this paper proposes the policy enlightenment of promoting industrial green transformation from the aspects of performance evaluation, market reform, and factor flow.

Suggested Citation

  • Dongri Han & Tuochen Li & Shaosong Feng & Ziyi Shi, 2020. "Does Renewable Energy Consumption Successfully Promote the Green Transformation of China’s Industry?," Energies, MDPI, vol. 13(1), pages 1-14, January.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:1:p:229-:d:304648
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    References listed on IDEAS

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    2. Wenwei Lian & Bingyan Wang & Tianming Gao & Xiaoyan Sun & Yan Zhang & Hongmei Duan, 2022. "Coordinated Development of Renewable Energy: Empirical Evidence from China," Sustainability, MDPI, vol. 14(18), pages 1-20, September.
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    5. Jiandong Duan & Fan Liu & Yao Yang & Zhuanting Jin, 2021. "Flexible Dispatch for Integrated Power and Gas Systems Considering Power-to-Gas and Demand Response," Energies, MDPI, vol. 14(17), pages 1-26, September.
    6. Chanyuan Liu & Long Xin & Jinye Li & Huaping Sun, 2022. "The Impact of Renewable Energy Technology Innovation on Industrial Green Transformation and Upgrading: Beggar Thy Neighbor or Benefiting Thy Neighbor," Sustainability, MDPI, vol. 14(18), pages 1-28, September.
    7. Jia-Pei Yue & Fu-Qin Zhang, 2022. "Evaluation of Industrial Green Transformation in the Process of Urbanization: Regional Difference Analysis in China," Sustainability, MDPI, vol. 14(7), pages 1-15, April.
    8. Yang, Xiaodong & Liu, Xia & Ran, Qiying & Razzaq, Asif, 2023. "How does natural resource dependence influence industrial green transformation in China? Appraising underlying mechanisms for sustainable development at regional level," Resources Policy, Elsevier, vol. 86(PA).

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