Electricity intensity across Chinese provinces: New evidence on convergence and threshold effects

Maria Jesus Herrerias () and G. Liu

Energy Economics, 2013, vol. 36, issue C, 268-276

Abstract: Energy intensity has gone through different stages across Chinese regions. In this paper, we investigate the stochastic electricity-intensity convergence across the Chinese provinces. Unlike previous work, this paper highlights the relevance of the level of technology of each province and takes into account the economic geography through the examination of club convergence. We perform several unit root tests that introduce structural breaks, nonlinearities and time variation, with the aim to capture the economic transformation of the Chinese economy. Results indicate that the majority of the Chinese regions have converged according to the unit-root tests in time-series analysis, indicating that technological differences diminish over time. However, this convergence pattern occurs within groups of regions, according with club convergence test. Indeed, we find a dominant club and others smaller clubs that few regions belong. However, it is observed that there are regions that still diverge. These findings support our argument that special policy attention is required for those regions displaying divergence.

Keywords: Energy intensity; Convergence; China provinces; Unit roots (search for similar items in EconPapers)
JEL-codes: O11 Q43 Q47 Q50 R11 (search for similar items in EconPapers)
Date: 2013
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (39)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:36:y:2013:i:c:p:268-276

DOI: 10.1016/j.eneco.2012.08.026

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