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The Impacts on Regional Development and “Resource Curse” by Energy Substitution Policy: Verification from China

Author

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  • Xiaoliang Xu

    (School of Economics and Management, Nanjing University of Science and Technology, 200 Xiaolingwei, Nanjing 210094, China)

  • Rong Huang

    (School of Economics and Management, Nanjing University of Science and Technology, 200 Xiaolingwei, Nanjing 210094, China)

  • Han Cai

    (School of Economics and Management, Nanjing University of Science and Technology, 200 Xiaolingwei, Nanjing 210094, China)

Abstract

With the increasing “resource curse” phenomena relating to energy resources in China, research concerning energy substitution policies has become more meaningful. In this paper, a dynamic CGE model was built to evaluate the impacts of energy substitution policies on regional growth and the “resource curse”. The results show the following: (1) Compared to other regions, an energy substitution policy exerts a more considerable influence on economic growth in regions with high “resource curse”. (2) The changes in carbon emissions in regions with no or low “resource curse” are modest. The primary factor contributing to the rapid decline might be energy structure adjustments. As the intensity of substitution varies, the regional disparities in marginal emission reduction costs are expected to increase. (3) Energy substitution policies reduce the severity of high “resource curse” regions. As the intensity of energy substitution increases, the extent of “resource curse” regions decreases accordingly. Some suggestions are given as follows: (1) Further promote energy substitution and speed up the transformation of energy production and consumption modes in China. (2) Accelerate the energy transformation in “resource curse” regions to promote regional sustainable development. (3) Improve energy substitution policies in transportation, industry and other fields.

Suggested Citation

  • Xiaoliang Xu & Rong Huang & Han Cai, 2024. "The Impacts on Regional Development and “Resource Curse” by Energy Substitution Policy: Verification from China," Energies, MDPI, vol. 17(17), pages 1-16, September.
    • Handle: RePEc:gam:jeners:v:17:y:2024:i:17:p:4394-:d:1469737
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    References listed on IDEAS

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