Energy-Saving Effect of Regional Development Strategy in Western China

Abstract

Improving energy utilisation efficiency is imperative to ensuring economic growth and achieving sustainable development. China’s Western Development Strategy (WDS) is a major driver to accelerate the economic development of Western China. It stresses the rational control of energy consumption through the vigorous development of a circular economy to achieve the goal of energy conservation. Based on the measurement of energy utilisation efficiency at the provincial level in China, this study evaluates the impact of the WDS on energy utilisation efficiency through a synthetic control method. Then, the internal impact mechanism of the WDS on energy utilisation efficiency is investigated. In addition, this paper tests the heterogeneous effects of the WDS on energy utilisation efficiency from the perspective of the regional scale, resource endowment, performance appraisal, and institutional quality. It is found that the WDS improves energy utilisation efficiency not only through direct effects but also indirectly by accelerating the spatial agglomeration of advantage industries in Western China, which enhanced technological innovation capacity, optimised industrial structure, and improved the human capital level to ameliorate energy utilisation efficiency. Further analysis proves that the energy-saving effect of the WDS is significant in provinces with a small regional scale, less abundant resources, higher levels of the performance appraisal index and quality system. Accordingly, some targeted policy suggestions are made for the government herein.