Title: Economic development, marketisation and energy consumption: evidence from China

Authors: Sifei Li; Chuang Lu; Yan Tong; Yun Zhang

Addresses: International Business School, Beijing Foreign Studies University, 100089 Beijing, China ' School of Accountancy, Central University of Finance and Economics, 100081 Beijing, China ' School of Management and Economics, Beijing Institute of Technology, 100081 Beijing, China ' School of Management and Economics, Beijing Institute of Technology, 100081 Beijing, China

Abstract: This paper investigates the relationship between economic development, marketisation and energy consumption. We hypothesise that both economic development and marketisation can affect energy consumption and that marketisation plays a more fundamental role. Empirical results from single-factor regressions show that both economic development and marketisation have negative associations with energy consumption. Results from two-stage regressions and variance decomposition demonstrate that marketisation has a more determinative effect on energy consumption than economic development does. The policy implication of our research is that, to reduce energy consumption, policy-makers should make better use of the role of markets in resource allocation.

Keywords: economic development; marketisation; energy consumption; China.

DOI: 10.1504/IJGEI.2017.086621

International Journal of Global Energy Issues, 2017 Vol.40 No.3/4, pp.225 - 239

Available online: 12 Sep 2017 *

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