Energy Price and Energy Efficiency in China: A Linear and Nonlinear Empirical Investigation

Peng Hou, Yilin Li, Yong Tan and Yuanjie Hou
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Peng Hou: School of Economics and Management, Beijing Forestry University, Beijing 100083, China
Yilin Li: School of Economics and Management, Beijing Forestry University, Beijing 100083, China
Yong Tan: Department of Accounting, Finance and Economics, Huddersfield Business School, University of Huddersfield, Queensgate, Huddersfield HD1 3DH, UK
Yuanjie Hou: School of Economics and Management, Beijing Forestry University, Beijing 100083, China

Energies, 2020, vol. 13, issue 16, 1-24

Abstract: The empirical conclusions regarding the relationship between energy price and energy efficiency are relatively mixed. This paper systematically examines the influence of energy price on energy efficiency in China based on data from 30 provinces between 2003 and 2017, using linear and nonlinear effect analysis. We found that the impact of energy price on energy efficiency in China was positive in general. However, there existed heterogeneous effects of energy price on energy efficiency in various regions, and the effect differed with differences in energy efficiency levels based on the panel quantile regression analysis. Finally, the nonlinear effect analysis based on the panel threshold model indicated that the effect of energy price on energy efficiency increased with the rise of the environmental regulation level and economic growth rate, while it decreased with the ascent of the degree of energy price distortion and economic development level. In particular, when the value of a region’s economic development level and economic growth rate was within a certain range, the impact was not statistically significant. Overall, these findings contribute to a deeper understanding regarding the effect of energy price on energy efficiency in China.

Keywords: energy price; energy efficiency; linear effect; nonlinear effect; panel quantile regression; panel threshold regression (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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