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

Dongri Han, Tuochen Li, Shaosong Feng and Ziyi Shi
Additional contact information
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

Energies, 2020, vol. 13, issue 1, 1-14

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.

Keywords: renewable energy consumption; industrial green transformation; energy misallocation; China (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 (8)

Downloads: (external link)
https://www.mdpi.com/1996-1073/13/1/229/pdf (application/pdf)
https://www.mdpi.com/1996-1073/13/1/229/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jeners:v:13:y:2020:i:1:p:229-:d:304648

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

More articles in Energies from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().