Trans-Provincial Convergence of Per Capita Energy Consumption in Urban China, 1990–2015

Abstract

Recognizing the change in regulation of energy consumption may help China to control total energy consumption and realize sustainable development during rapid urbanization and industrialization. This paper re-examined the trans-provincial convergence of per capita energy consumption from 1990–2015 using five different kinds of methods for 30 Chinese provinces. Results show that per capita energy consumption across Chinese provinces was convergent. However, the results obtained by different methods were slightly different. First, it shows a weak beta-unconditional convergence during the entire period, as well as a significant beta-unconditional and conditional piecewise convergence from 1990–2000 and 2001–2015. Second, it shows a significant sigma-convergence indicated by a marked decrease in the standard deviation of logarithm (SDlog) and the coefficient of variation (CV). Third, the kernel density curve became narrower during 1990–2015, indicating that the per capita energy consumption of each Chinese province converged to a common equilibrium level, which was about 80% of the national average. Fourth, the intra-distributional mobility index implied a weak gamma-convergence. Fifth, the first difference of DF (Dickey-Fuller), ADF (Augmented Dickey-Fuller), and PP (Phillips-Perron) unit-root tests all suggested a stochastic convergence. On the whole, the results from this paper contribute to a more in-depth understanding of the status quo of per capita energy consumption in China, as well as a meaningful implication for differentiated energy policies and sustainable development strategies.