Abstract
The Chinese government has stepped up its anti-corruption efforts since 2013; the National Energy Administration (NEA), an energy regulatory agency, has been hard hit by corruption. This paper analyzes the impact of government corruption on energy efficiency (EE) from a perspective of energy regulations and also a mechanism of the impact of corruption on EE, and then adopts statistical methods to estimate the impact of corruption on EE in China. The results show that government corruption generally has a negative effect on EE in China. The establishment of dispatched energy regulatory agencies in eastern China can significantly reduce the adverse effects of corruption on EE. Furthermore, a single threshold effect was found between corruption and EE. Finally, based on the results of an empirical analysis, suggestions for a constructive policy are put forward.
Highlights
Since the reform and opening up of China, with a rapid development of urbanization and industrialization, the conflicting demands of energy, environment, and economic development have become increasingly prominent (Zhao et al, 2020)
Statistics published by the Central Commission for Discipline Inspection (CCDI) show that since the National Energy Administration (NEA) was established 10 years ago, two of the four directors have been investigated for corruption
These results showed that the quality improvement of different governance factors in countries did not always reduce Carbon Dioxide (CO2) emissions
Summary
Since the reform and opening up of China, with a rapid development of urbanization and industrialization, the conflicting demands of energy, environment, and economic development have become increasingly prominent (Zhao et al, 2020). Statistics published by the Central Commission for Discipline Inspection (CCDI) show that since the National Energy Administration (NEA) was established 10 years ago, two of the four directors (at a ministerial level) have been investigated for corruption This interesting phenomenon inspired us to study the relationship between the two in China This toxic culture of corruption interacts with energy regulators; the exposure can help to motivate officials and reduce administrative delays and becoming a lubricant for the improvement of EE (Wang and You, 2012). Based on an empirical analysis, countermeasures and suggestions for improving supervision systems of the government, the organizational structure of regulations, and the promotion of the market reforms of energy industries in China are proposed. Section Conclusions and Policy Recommendations concludes the paper and provides policy recommendations
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