Oil price distortion and its impact on green economic efficiency in China’s transportation: A spatial effect perspective

Qingyuan Zhu, Chengzhen Xu, Qingjuan Chen and Liangpeng Wu

Renewable and Sustainable Energy Reviews, 2024, vol. 191, issue C

Abstract: China's oil prices have been supervision for a long time, which has led to oil price distortion (OPD) to some extent. To figure out whether OPD will impede the sustainability of energy, economy, and environment (measured by green economic efficiency (GEE)), this research first estimates OPD from 2003 to 2019. Then, using a non-radial direction distance function under nonconvex technology assumptions, this research calculates the provincial GEE by incorporating capital, labor, energy, and environment efficiencies into a unified framework. Furthermore, the OPD-GEE nexus and their influencing channels are analyzed using the spatial Durbin model. The results indicate that there are serious OPD and the average GEE in the transportation is relatively low. Local OPD correction can improve local GEE but OPD correction in spatially related regions will cause local GEE loss. The heterogeneity analysis implies that the GEE promotion effect resulting from local OPD correction is greater in oil-rich regions, new energy vehicle pilot regions, and regions with water transport. Furthermore, the mechanism analysis implies that OPD correction can improve local GEE through optimizing energy structure, mitigating resource mismatch, and promoting green technological progress; meanwhile, OPD correction in spatially adjacent regions can cause local GEE losses by exacerbating their resource mismatch. This study offers a new understanding of the impact of OPD on GEE and contributes to the promotion of sustainable development through market-oriented price reforms.

Keywords: Oil price distortion; Green economic efficiency; Transportation industry; Spatial effect; Mediating effect (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S1364032123010067
Full text for ScienceDirect subscribers only

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:eee:rensus:v:191:y:2024:i:c:s1364032123010067

Ordering information: This journal article can be ordered from
http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic
http://www.elsevier. ... 600126/bibliographic

DOI: 10.1016/j.rser.2023.114148

Access Statistics for this article

Renewable and Sustainable Energy Reviews is currently edited by L. Kazmerski

More articles in Renewable and Sustainable Energy Reviews from Elsevier
Bibliographic data for series maintained by Catherine Liu ().