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Urbanization and energy equity: an urban-rural gap perspective
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Journal Article
Urbanization and energy equity: an urban-rural gap perspective
2023
Overview
A high-speed urban expansion in China over the past two decades has been accompanied by a great leap forward for energy consumption. However, such a significant socio-economic transition may increase the potential risk of energy inequality, which deserves special attention. Using China’s provincial panel data covering the periods of 1997–2020, this paper mainly studies the impact of urbanization on urban-rural electricity consumption inequality with a modified STRIPAT model. The results of the Generalized Method of Moments (GMM) estimation show that there is a significant U-shaped relationship between urbanization and urban-rural electricity consumption inequality. The estimated short-run turning point arrives at the urbanization level of around 63.54% and 61.18% for the long-run estimates. We further carry out a regional heterogeneity analysis and then have two interesting findings: firstly, the colder northern region’s turning point (70.95%) arrives later than the south (57.69%). Secondly, the baseline U-shaped relationship remains for developed eastern regions and the estimated turning point is 57.91%, while for the undeveloped midwestern regions, the relationship is not nonlinear but linearly negative. As an extension, we lastly explore the mechanism underlying the U-shaped relationship, and find that the interaction of urbanization’s scale and efficiency effect determines the U-shaped relationship. Our findings remind policymakers that, to narrow the urban-rural development gap, the future preference of energy policy should be dynamically adaptive to varied regions and development stages.
Publisher
Springer Berlin Heidelberg,Springer Nature B.V
