The impact of rapid urbanization on residential energy consumption in China

Abstract

Due to the rapid progress of urbanization in China, the percentage of residential energy consumption out of total energy consumption has increased. This paper uses statistical data from 30 Chinese provinces (autonomous regions and municipalities) from 2000 to 2020 to analyze the impact of urbanization on residential energy consumption and construct an econometric model to test the mechanism. The empirical tests show that the consumption of direct energy (energy that exists in nature in its original form and has not been transformed) is positively U-shaped about the urbanization rate. Furthermore, the impact of economic development on direct and indirect energy consumption is significantly positive. In contrast, the effects of population agglomeration on immediate energy consumption are adverse, and the indirect energy consumption is positive.