The role of different paths of technological progress in improving China's energy efficiency

Abstract

Improving energy efficiency is one of the most effective ways to address environmental constraints and achieve high-quality economic development. The existing literature suggests that technological progress has an important impact on energy efficiency, but ignores the role of different paths of technological progress. Herein, the impact of different technological progress paths on energy efficiency was analyzed using the dynamic panel data model and the threshold model based on the energy efficiency measurement using the Meta-frontier and Nonradial Directional Distance Function model. The findings of this study were as follows: (1) During the study sample period, a fluctuating upward trend was observed in China's energy efficiency, and there were significant differences in energy efficiency in different regions of China. (2) The energy efficiency in China could be significantly improved by domestic innovation and regional technology diffusion. Even though the imported technologies do not play a significant role in promoting energy efficiency and have no positive effect on the improvement of energy efficiency from the perspective of domestic technology absorption or foreign technology absorption. (3) The eastern and central regions of China improve their energy efficiency through domestic innovation. However, none of the technological progress paths in the western and low-energy-efficiency regions have played a positive role in promoting energy efficiency. (4) The effect of promoting domestic innovation and regional technology diffusion on energy efficiency is gradually increasing with human capital improvement, and the restriction of foreign technology import on energy efficiency has obviously decreased. In a nutshell, different paths of technological progress have differential effects on energy efficiency improvements. Based on the above results, this paper makes some targeted policy recommendations on the choice of technological progress paths to improve energy efficiency in different regions of China.