『Abstract
The recent economic stimulus package of China has raised growing
concern about its potential impact on energy demand and efficiency.
T what extent does such expansion of government expenditure influence
energy intensity? This question has not been well answered by
the previous research. Using provincial panel data, this paper
provides some evidence of a link between government expenditure
and energy intensity in China. The empirical results demonstrate
that the expansion of government expenditure since Asian financial
crisis has exerted a significant influence on energy intensity.
An increase in government expenditure in China leads to an increase
in energy intensity. Further analysis compares such relationship
in different economic situations. The comparison shows that such
positive effect of government expenditure remains significant
after the alteration in economic situation. Therefore, the results
suggest introducing some measures to consolidate China's existing
gains in energy efficiency. The analysis also explains why the
downward trend in energy intensity is reversed in China since
2002.
Keywords: Energy demand; Energy intensity; China』
1. Introduction
2. Methodology
2.1. Data description and summary statistics
2.1.1. The variable of energy intensity
2.1.2. The variable of government expenditure
2.1.3. The control variables
2.1.4. Summary statistics
2.2. Econometric approach
3. Results
4. Conclusions
Acknowledgements
References