Research and development factor mismatch, production losses, and energy efficiency: A study on Chinese regional economies

Abstract

In the face of global economic development and increasing energy demands, the efficient allocation of Research and Development (R&D) resources emerges as a universal concern. This study illuminates the complex relationship between R&D factor mismatch, production losses, and changes in regional energy intensity. Utilizing factor mismatch accounting framework and the STIRPAT model, we systematically assess the impact of spatial mismatches in R&D factors on R&D output and regional energy intensity. The analysis unfolds in three steps, first, the estimation of the degree of spatial R&D factor mismatch and the resulting output gap; second, the calculation of R&D output loss as a function of spatial mismatch coefficient and output share per location; and third, the examination of changes in energy intensity induced by R&D factor mismatch in terms of Total Factor Productivity (TFP), factor mismatch, and output structure. Our findings reveal that R&D factor mismatches can hinder energy intensity reduction, and that regional disparities in the process of factor market marketization significantly contribute to variations in regional energy intensity. These insights emphasize the critical role of efficient R&D resource allocation in promoting energy conservation and productivity, providing substantial implications for policy-making in sustainable growth and energy efficiency across diverse economies.