Abstract
Energy is the engine of China's rapid economic growth. Whereas, under the requirements of economic transition, energy productivity is in urgent need of improvement. To curb air pollutant emission, the Chinese government promulgated the Clean Air Action Plan in 2013, and the policy puts forward specific measures on energy utilization. How does energy productivity vary before and after policy implementation? Can environmental regulations promote energy productivity? Based on three-dimensional panel data—time (2008–2017), industry (19 2-digit industrial sectors), and region (30 provinces), this paper uses stochastic frontier analysis to measure total factor energy productivity of the industrial sector. The results show an upward trend in energy productivity, and the total factor productivity of energy-intensive sectors has grown faster. Regarding the environmental regulation as a quasi-natural experiment, the difference-in-difference-in-difference estimations validate and quantify the promotion effect on energy productivity. Furthermore, the mechanism analysis specifies the transfer channels as energy structure optimization and green technology innovation. China is currently at a critical period of transition to green and clean development. Our findings will provide theoretical support for the mechanism design of environmental and energy policies.
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