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.
International Journal of Global Energy Issues, 2017 Vol.40 No.3/4, pp.225 - 239
Accepted: 22 Jul 2017
Published online: 12 Sep 2017 *