Environmental regulation and green energy efficiency: an analysis of spatial Durbin model from 30 provinces in China

Improving green energy efficiency is crucial to promoting China's high-quality economic development and reducing the environmental pollution. In this paper, the Malmquist-Luenberger index measures the green energy efficiency of 30 provinces in China from 2004 to 2019. Based on the measurement results, the spatial Durbin model is used to empirically study the impact of environmental regulation on green energy efficiency and its spatial spillover effects. The results show that China's green energy efficiency is low, and its growth mainly comes from technological progress (TECH) rather than technological efficiency (EFFCH). The eastern region has the highest efficiency of green energy, followed by the West and the lowest in the Central region. The estimation results of the spatial Durbin model show that both environmental regulation and green energy efficiency have a significant spatial correlation. Environmental regulation can improve the green energy efficiency in the local province but inhibit green energy efficiency in the adjacent provinces. Finally, this paper puts forward relevant policy suggestions according to the research results.

Automated summary

This study measures the green energy efficiency and uses the spatial Durbin model to examine the impact of environmental regulation on green energy efficiency in China. The results show that China's green energy efficiency is low and its growth is mainly driven by technological progress. The eastern region has the highest efficiency while the central region has the lowest. Additionally, environmental regulation can improve green energy efficiency locally but inhibit it in adjacent provinces.