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

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...

Full description

Saved in:
Bibliographic Details
Published in:Energy economics 2013-03, Vol.36, p.268-276
Main Authors: Herrerias, M.J., Liu, G.
Format: Article
Language:English
Subjects:
Applied sciences
China
China provinces
Clubs
Convergence
Economic data
Economic geography
Economics
Electric energy
Electric power
Electricity
Energy
Energy economics
Energy intensity
Energy policy
Exact sciences and technology
General, economic and professional studies
Geography
Labour intensity
Methodology. Modelling
Nonlinearity
Roots
Technology
Transformations
Unit root
Unit roots
Citations: Items that this one cites
Items that cite this one
Online Access:Get full text
Tags: Add Tag
No Tags, Be the first to tag this record!
Description
Summary: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. ► Electricity-intensity convergence across the Chinese provinces is investigated. ► We use monthly data. ► We highlight the relevance of the level of technology of each province and the economic geography. ► Recent unit root tests are employed. ► We found club convergence.
ISSN:0140-9883
1873-6181
DOI:10.1016/j.eneco.2012.08.026