TRADE LIBERALIZATION, ENERGY‐SAVING TECHNOLOGICAL CHANGE AND ENERGY INTENSITY: SOME EMPIRICAL EVIDENCE FROM CHINA

Jun Wang, Chengbo Wang and Xuan Wan

Contemporary Economic Policy, 2021, vol. 39, issue 2, 365-376

Abstract: This paper discusses the transmission mechanism and effects that trade liberalization influences energy intensity through energy‐saving technological change (ESTC). We construct panel data from manufacturing industries in China over the period of 1994–2017, thereby conducting empirical tests through mediation models and discontinuity regression models. The results find that trade liberalization significantly promotes the lowering of energy intensity through ESTC. Heterogeneity test results show that the trade liberalization effect is higher in industries with low barriers to entry and industries with high pollution. Fuzzy regression discontinuity (FRD) results show that energy intensity decreasing as China's accession to the World Trade Organization (WTO). (JEL F10, F18, L60, Q43)

Date: 2021
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