Assessing energy efficiency of natural gas in China’s transition towards carbon neutrality

Abstract

As countries worldwide strive for a sustainable energy transition, the role of natural gas in achieving carbon neutrality targets has gained increasing attention. This study evaluates the energy efficiency of natural gas (EENG) in China from 2008 to 2021, using the Slacks-Based Measure Data Envelopment Analysis model to examine temporal dynamics and regional disparities. The spatial Durbin model is employed to investigate the factors influencing EENG, considering spatial spillover effects. The results reveal an overall improvement in China’s EENG over time, with significant temporal and regional variations. Urbanization, environmental regulation, natural gas infrastructure, industrial structure, and technological innovation are found to have significant positive impacts on EENG, with notable spatial spillover effects and regional heterogeneity. These findings contribute to the literature on sustainable energy transitions and provide valuable insights for policymakers to develop targeted strategies for enhancing natural gas efficiency and achieving carbon neutrality in China.