Unpacking energy consumption in China's urbanization: Industry development, population growth, and spatial expansion

Xiang Yan, Boqing Xin, Changgao Cheng and Zhiyong Han

Research in International Business and Finance, 2024, vol. 70, issue PA

Abstract: Urbanization is not only a process of population transfer, but also a process of coordination and adaptation among population, space and industries, which can trigger multiple effects on energy consumption (EC). This study analyzed EC changes in China using a modified LMDI model. Most literatures indicated the industry production consumes amount of EC, but this paper unpacked the influencing factors in details, found that urbanization has a greater pulling effect on EC of production side over life side. Household consumption drives EC increase in production. The convergence of urban and rural consumption behaviors stimulates EC in daily life. Unreasonable land use intensifies EC, while population agglomeration affects EC fluctuation negatively. Upgrading industries and technology alleviate EC, and the consumption inhibiting effect has an inverted U-shaped effect. Hence, improving residents' consumption habits and optimizing spatial resource allocation are crucial for reducing EC while industrial development faces bottlenecks.

Keywords: Urbanization; Population; Space; Industry; Energy consumption; Effects decomposition (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:riibaf:v:70:y:2024:i:pa:s0275531924001351

DOI: 10.1016/j.ribaf.2024.102342

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