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Does market segmentation necessarily discourage energy efficiency?
Yanjun Yang1, Rui Xue2, Dong Yang1
1School of Economics and Business Administration, Chongqing University, Chongqing, China.
Abstract:
Prior research tends to propose and examine the negative relationship between market segmentation and energy efficiency. Does market segmentation necessarily impair energy efficiency? Considering the critical role that Chinaese government play in managing erergy efficiency, we propose a non-linear relationship between market segmentation and energy efficiency. Using data of 30 provinces in Mainland China during 2000 to 2017, we find an inverse U-shaped relationship between market segmentation and energy efficiency. Our findings remain robust after controlling endogeneity issues. Therefore, a moderate level of market segmentation is acceptable and beneficial for long-term improvement of energy efficiency in emerging economies.
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