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Towards energy conservation by constructing more transportation infrastructure?: An endogenous stochastic frontier
Ruipeng Tan1, Lianbiao Cui2, Xiaohua Meng3
1School of Economics, Hefei University of Technology, Hefei, 230601, China; Center for Industrial Information and Economics Research, Hefei University of Technology, Hefei, 230601, China.
Investing in transportation infrastructure significantly boosts energy efficiency and aids energy conservation efforts. This impact is particularly strong in smaller cities, highlighting targeted development opportunities.
Area of Science:
- Environmental Science
- Economics
- Urban Planning
Background:
- The link between transportation infrastructure and energy conservation is debated.
- Endogeneity issues complicate understanding the relationship between transportation infrastructure and energy efficiency.
Purpose of the Study:
- To clarify the relationship between transportation infrastructure and energy efficiency.
- To quantify the impact of transportation infrastructure on energy efficiency in China.
Main Methods:
- Employed an endogenous stochastic frontier analysis method.
- Utilized prefecture-city level panel data from China.
- Conducted simulation analysis to estimate energy conservation potential.
Main Results:
- Addressing endogeneity dramatically increases the measured impact of transportation infrastructure on energy efficiency.
- The positive effect of transportation infrastructure on energy efficiency is more significant in small-scale cities.
- Findings are robust across different measurements of transportation infrastructure and model specifications.
Conclusions:
- Accelerating transportation infrastructure construction is recommended to enhance energy efficiency.
- Prioritizing infrastructure development in small cities can maximize energy conservation benefits.
- Optimized transportation infrastructure offers substantial energy conservation potential.
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