The underlying drivers of energy efficiency: a spatial econometric analysis.

Abstract

It is theoretical and practical to investigate the causes and effects of energy efficiency. However, few empirical studies have been conducted to examine the potential underlying drivers of energy efficiency from a spatial perspective. In light of this, we combined the data envelopment analysis and spatial econometric analysis to explore the driving factors of energy efficiency. The results show that China's energy efficiency shows significant characteristics of regional disparity and spatial agglomeration; that is, high energy efficiency has presented a benefit agglomeration, while low energy efficiency has presented a disadvantage agglomeration. The empirical results indicate that technological progress, trade openness, and foreign direct investment have effectively improved energy efficiency, while energy structure and industrial structure adversely affect energy efficiency. Furthermore, technological progress, trade openness, energy structure, foreign direct investment, and industrial structure exert different influences on energy efficiency, but their potential underlying mechanisms vary essentially across regions. Thus, using a spatial econometric model allowing for spatial dependence in analyzing drivers of energy efficiency is urgent and necessary for promulgating energy policies.