Title: How does regional energy allocation evolve and form: evidence from urban agglomeration in China

Authors: Qiu Derong; Huang Chen; Ji Kaiwen; Ma Jian

Addresses: Jiangxi Institute of Economic Development, Jiangxi Normal University, 88 Ziyang Road, 330022 Nanchang, China ' School of Public Administration, Zhejiang University, 55 Yuhangtang Road, 310085 Hangzhou, China ' Jiangxi Institute of Economic Development, Jiangxi Normal University, 88 Ziyang Road, 330022 Nanchang, China ' Jiangxi Institute of Economic Development, Jiangxi Normal University, 88 Ziyang Road, 330022 Nanchang, China

Abstract: Resource allocation is key topic in regional economics. Energy misallocation was particularly strategic, is highly valued but ignored. This paper investigates the energy misallocation in the context of urban agglomeration, based on the theoretical accounting framework. Then spatial econometric empirical research is conducted by using the Chinese industrial enterprises dataset. With an energy efficient allocation, the productivity of urban agglomeration could rise 5.1% in 2007. The energy misallocation was declining. The results show that the accounting framework incorporating energy elements can calculate resource misallocation more accurately in urban agglomeration. Compared with the capital and labour factor, the degree of energy misallocation is close to that of capital and labour. The mitigating factor is trade openness, which has a negative spatial effect. The factors that aggravate energy misallocation are market barriers, fiscal stimulus, and labour control. Market barriers and fiscal stimulus have obvious spatial effects.

Keywords: energy misallocation; urban agglomeration; trade openness; market barriers; spatial dependence; efficiency; TFP; total factor productivity.

DOI: 10.1504/IJEP.2020.120173

International Journal of Environment and Pollution, 2020 Vol.68 No.3/4, pp.124 - 144

Received: 06 Apr 2020
Accepted: 04 Nov 2020

Published online: 28 Dec 2021 *

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