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How to improve total factor energy efficiency under climate change: does export sophistication matter?
Jianmin Liu1,2, Yan Xue1, Zehong Mao3
1School of Economics and Trade, Hunan University, Changsha, 410079, China.
Environmental Science and Pollution Research International
|November 18, 2022
Summary
Improving export sophistication enhances total factor energy efficiency (TFEE). This study confirms a phased, positive link and highlights how regional factors influence this crucial relationship for energy solutions.
Area of Science:
- Environmental economics
- Energy policy
- International trade
Background:
- Climate change poses significant threats to human survival and development, necessitating technological solutions.
- Total Factor Energy Efficiency (TFEE) is a key area for addressing energy challenges and promoting sustainable development.
- Export sophistication is increasingly recognized as a potential driver for economic and environmental improvements.
Purpose of the Study:
- To investigate the intricate relationship between export sophistication and Total Factor Energy Efficiency (TFEE).
- To analyze the dynamic correlation between advancements in export sophistication and improvements in TFEE.
- To examine how contextual factors like corruption, economic development, and openness moderate the export sophistication-TFEE nexus.
Main Methods:
- Econometric analysis using a fixed-effect model.
- Impulse response function to assess dynamic causal effects.
- Threshold regression model to identify varying relationships across different levels of key variables.
Main Results:
- Export sophistication demonstrates a significant positive impact on TFEE.
- A phased and positive correlation was confirmed between export sophistication and TFEE over time.
- The relationship between export sophistication and TFEE is contingent upon threshold levels of regional corruption, economic development, and openness.
Conclusions:
- Enhancing export sophistication is a viable strategy for improving TFEE.
- Policy interventions should consider regional contextual factors for maximizing energy efficiency gains.
- Findings offer valuable insights for China's export strategy and global energy crisis response.
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