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Does human capital matter for energy consumption in China?

Ruhul Salim, Yao Yao and George S. Chen

Energy Economics, 2017, vol. 67, issue C, 49-59

Abstract: This article investigates the dynamic relationship between human capital and energy consumption using Chinese provincial data over the period 1990–2010. Considering for cross-sectional dependence and parameter heterogeneity across space and over time, we identify a significant and negative human capital–energy consumption relationship in China. Specifically, we find that a 1% increase in human capital reduces energy consumption by a range between 0.18% and 0.45%. Furthermore, this negative relationship can be attributed to stronger accumulation of post-school human capital in eastern China. This finding suggests that energy conservation in China could be achieved by improving post-school human-capital components such as on-the-job training, experience and learning-by-doing.

Keywords: Energy consumption; Human capital; Panel data; China (search for similar items in EconPapers)
JEL-codes: C33 Q43 J24 O50 (search for similar items in EconPapers)
Date: 2017
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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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