Does energy efficiency make sense in China? Based on the perspective of economic growth quality

Abstract

Whether energy efficiency can significantly improve economic growth quality is an important perspective to understand the relationship between energy and economic growth. Based on the provincial data during 2000–2017 in China, this study uses the Shepherd energy distance function and entropy weight method to calculate the energy efficiency and economic growth quality of each province, and investigates the impact of energy efficiency on economic growth quality. The results indicate that energy efficiency does not significantly improve economic growth quality, but there is an obvious U-shaped relationship between energy efficiency and economic growth quality. The influence of energy efficiency has significant regional heterogeneity. Energy efficiency significantly increases economic growth quality in the eastern regions but significantly reduces economic growth quality in the central and western regions. Meanwhile, energy efficiency has a positive U-shaped relationship with economic growth quality in the eastern and central regions. Moreover, the upgrading of industrial structure plays an important role in the process of energy efficiency affecting economic growth quality. In response to the above conclusions, this paper puts forward the targeted policy implications to improve China's energy efficiency and promote high-quality economic development.