Extreme climate, innovative ability and energy efficiency

• Published in: Energy economics Vol. 120; p. 106586
• Main Authors: Wang, Hai-jie, Tang, Kai
• Format: Journal Article
• Language: English
• Published: Elsevier B.V 01.04.2023
• Subjects: Energy efficiency; Extreme climate; Innovation ability; O13; Extreme climate; Energy efficiency; R11; Innovation ability; O18
• ISSN: 0140-9883
• DOI: 10.1016/j.eneco.2023.106586

It is of great significance to explore the effect and mechanism of extreme climate on energy efficiency. In theory, extreme climate can stimulate the forcing effect to improve the level of innovation ability and energy efficiency in the long run. Empirically, this study measures the comprehensive level of extreme climate, innovation ability, and energy efficiency of 236 cities in China from 2011 to 2019 and then conducts econometric analysis. The results show that extreme climate significantly plays a forcing role for the improvement of energy efficiency. Innovation ability is also an important intermediary mechanism through which extreme climate influences energy efficiency. The impact of extreme climate on energy efficiency has significant regional heterogeneity, and the impact on peripheral cities is greater than that on core cities, showing the characteristics of a diminishing marginal effect. In order to better cope with extreme climate and improve energy efficiency, it is necessary to adhere to the combination of an effective market and promising government, increase financial investment in dealing with extreme climate, and promote energy transformation. •Theoretical framework of “extreme climate - innovation ability - energy efficiency”.•Extreme climate significantly promote energy efficiency through enhancing innovation ability.•Impacts on peripheral cities is greater than that on core cities.