Socio-economic transition and inequality of energy consumption among urban and rural residents in China

Abstract

In the last two decades, a remarkable socio-economic transition has been witnessed in China. Existing studies have only shown that energy consumption of residents is influenced by economic growth and urbanization. It is unclear, however, how socio-economic transition influences the inequality of energy consumption among urban and rural residents. Focusing on the empirical investigation of two different regions (the eastern developed provinces with little energy resources and the western underdeveloped provinces with rich energy resources), this paper examined the major socioeconomic determinants of energy consumption inequality between urban and rural residents. The results of panel data analyses showed that there was a long-term relationship between socio-economic transition and changes in the inequality of energy consumption among residents. Meanwhile, the results revealed that the influence of socio-economic transition varied from regions to regions. Generally, the influence of urbanization on the inequality of both quantity and diversity was found to be the most profound and significant in all regions. The industrialization transition also exerted far-reaching effects, although its influence was determined by the growth of industry sectors. Moreover, the influence of economic transition was only significant in underdeveloped regions and such an influence fitted to a Kuznet's curve. For the transition of technology and education, its influence was significant in the developed provinces but was only effective in affecting the diversity of inequality. In summary, the findings of this research present policymakers a better understanding of the relationship between the socio-economic transition and inequality in energy consumption.