The marginal and double threshold effects of regional innovation on energy consumption structure: Evidence from resource-based regions in China

Innovation-driven, energy consumption structure optimisation is crucial in developing countries. China, as a typical developing country, has been shifting its economic development model from a traditional approach to innovation-driven, high-quality development. We select nine resource-based regions...

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Published inEnergy policy Vol. 131; pp. 144 - 154
Main Authors Hao, Xiaoli, Deng, Feng
Format Journal Article
LanguageEnglish
Published Kidlington Elsevier Ltd 01.08.2019
Elsevier Science Ltd
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Abstract Innovation-driven, energy consumption structure optimisation is crucial in developing countries. China, as a typical developing country, has been shifting its economic development model from a traditional approach to innovation-driven, high-quality development. We select nine resource-based regions in China as our research subject and employ a varying coefficient panel model and a Hansen panel threshold model to quantify the marginal and threshold effects of innovation capacity in optimising energy consumption structure. The results indicate that the overall energy consumption structure index for the analysed regions is 0.563, revealing that the structure is rather low and regional economic development relies mainly on low-ranked energy. Astonishingly, the marginal effect reflects obvious heterogeneity: a positive effect in Sichuan (−0.208), Yunnan (−0.207), and Xinjiang (−0.431); nearly no effect in Chongqing, Gansu, and Qinghai; and a negative effect in Guangxi (0.104), Shaanxi (0.244), and Ningxia (1.282). In previous studies, such negative effects have been totally ignored. Further, there are double thresholds and a unique driving mechanism, namely, ‘negative driving → strong positive driving → weak positive driving’. Interestingly, below the first threshold, improvement in innovation will lead to energy consumption structure degradation. Current policies, such as introducing extensive talent, are not feasible for all resource-based regions. The concerns of policy making for the three different threshold intervals should be: upgrading industrial structures, optimising the structure of human resources, and preventing ‘brain drain’, respectively. •The marginal effects of regional innovation on energy consumption structure.•Underlying reasons of heterogenous marginal effect, especially the negative effects.•Investigate the double threshold effects and a unique driving mechanism.•Corresponding suggestions of policy making for the three threshold intervals.
AbstractList Innovation-driven, energy consumption structure optimisation is crucial in developing countries. China, as a typical developing country, has been shifting its economic development model from a traditional approach to innovation-driven, high-quality development. We select nine resource-based regions in China as our research subject and employ a varying coefficient panel model and a Hansen panel threshold model to quantify the marginal and threshold effects of innovation capacity in optimising energy consumption structure. The results indicate that the overall energy consumption structure index for the analysed regions is 0.563, revealing that the structure is rather low and regional economic development relies mainly on low-ranked energy. Astonishingly, the marginal effect reflects obvious heterogeneity: a positive effect in Sichuan (−0.208), Yunnan (−0.207), and Xinjiang (−0.431); nearly no effect in Chongqing, Gansu, and Qinghai; and a negative effect in Guangxi (0.104), Shaanxi (0.244), and Ningxia (1.282). In previous studies, such negative effects have been totally ignored. Further, there are double thresholds and a unique driving mechanism, namely, ‘negative driving → strong positive driving → weak positive driving’. Interestingly, below the first threshold, improvement in innovation will lead to energy consumption structure degradation. Current policies, such as introducing extensive talent, are not feasible for all resource-based regions. The concerns of policy making for the three different threshold intervals should be: upgrading industrial structures, optimising the structure of human resources, and preventing ‘brain drain’, respectively. •The marginal effects of regional innovation on energy consumption structure.•Underlying reasons of heterogenous marginal effect, especially the negative effects.•Investigate the double threshold effects and a unique driving mechanism.•Corresponding suggestions of policy making for the three threshold intervals.
Innovation-driven, energy consumption structure optimisation is crucial in developing countries. China, as a typical developing country, has been shifting its economic development model from a traditional approach to innovation-driven, high-quality development. We select nine resource-based regions in China as our research subject and employ a varying coefficient panel model and a Hansen panel threshold model to quantify the marginal and threshold effects of innovation capacity in optimising energy consumption structure. The results indicate that the overall energy consumption structure index for the analysed regions is 0.563, revealing that the structure is rather low and regional economic development relies mainly on low-ranked energy. Astonishingly, the marginal effect reflects obvious heterogeneity: a positive effect in Sichuan (−0.208), Yunnan (−0.207), and Xinjiang (−0.431); nearly no effect in Chongqing, Gansu, and Qinghai; and a negative effect in Guangxi (0.104), Shaanxi (0.244), and Ningxia (1.282). In previous studies, such negative effects have been totally ignored. Further, there are double thresholds and a unique driving mechanism, namely, 'negative driving → strong positive driving → weak positive driving'. Interestingly, below the first threshold, improvement in innovation will lead to energy consumption structure degradation. Current policies, such as introducing extensive talent, are not feasible for all resource-based regions. The concerns of policy making for the three different threshold intervals should be: upgrading industrial structures, optimising the structure of human resources, and preventing 'brain drain', respectively.
Author Deng, Feng
Hao, Xiaoli
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Snippet Innovation-driven, energy consumption structure optimisation is crucial in developing countries. China, as a typical developing country, has been shifting its...
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SubjectTerms Ability
Brain
Brain drain
China
Degradation
Developing countries
Double thresholds
Driving
Economic development
Economic models
Economics
energy
Energy consumption
Energy consumption structure
Energy development
Energy policy
Heterogeneity
Human resources
Industrial policy
Innovations
issues and policy
LDCs
Marginal effect
Optimization
Policy making
Regional development
Regional economic development
Regional innovation
Regions
Research subjects
threshold models
Thresholds
Title The marginal and double threshold effects of regional innovation on energy consumption structure: Evidence from resource-based regions in China
URI https://dx.doi.org/10.1016/j.enpol.2019.04.034
https://www.proquest.com/docview/2260418863
https://www.proquest.com/docview/2286903630
Volume 131
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