Exploring resource endowment and human capital impact on regional energy efficiency in China in the context of COP26

Abstract

The 26th Conference of the Parties (COP26) noted that one of the most effective and a rapid pathway to carbon reduction is to improve energy efficiency (EF). Therefore, the improvement of energy efficiency has become the focus of attention of many countries. This study measured China's regional EF by selecting data from 30 regions (excluding Hong Kong, Macau, Taiwan and Tibet) in China from 2008 to 2021 and explored human capital and resource endowment's impact on EF. The study fount that (1) the average value of national EF was 0.773 and the EF showed an upward trend over the study period; its value was the highest in eastern and lowest in western regions; (2) resource endowment can inhibit EF in three major regions and across the whole country, which verifies the existence of the resource curse hypothesis (with the exception of the for the eastern region); human capital has a positive effect on EF, and it is most significant in the eastern region, while the central and western regions have a smaller impact on EF; (3) the relationship between environmental regulations and EF shows a ‘U’ shape in all regions; foreign direct investment can significantly improve EF in all regions and it is most significant in the central region; the industrial structure can promote EF, with the exception of the eastern region. Urbanization can improve EF in the national and eastern regions, but it inhibits EF in the central and western regions. The study provides valuable implications for the promotion of EF in China.