Article,
Effects of urbanisation on energy consumption in China
Energy Policy, (February 2014)
DOI: 10.1016/j.enpol.2013.10.005
Abstract
Urbanisation slows per capita REC growth when compared with rural areas. Urbanisation has a greater promotional effect on REC growth and a stronger improved effect on energy structure than do rural areas. The economic growth effect of urbanisation is responsible for the majority of PEC growth. Technological advancement in conjunction with urbanisation has an adverse effect on the increase in PEC. The structural effect of the energy supply on the urbanisation process has increased rather than decreased China's PEC. There is no significant evidence that industrial structure adjustment in the urbanisation process affects PEC. As a key issue in China's economic development, urbanisation creates increasing pressure on energy supply and the natural environment. Thus, a better understanding of the relationship between urbanisation and energy consumption is necessary for Chinese decision makers at various levels to address energy security and sustainable economic and social development. This paper empirically investigates the effects of China's urbanisation on residential energy consumption (REC) and production energy consumption (PEC) through a time-series analysis. The results show that compared with rural areas, urbanisation slows per capita REC growth because of the economy of scale and technological advantages associated with urbanisation but has greater promotional effects on the growth of REC and the improvement of REC structure. The economic growth caused by urbanisation most significantly contributes to an increase in PEC, whereas technological advancement was found to reduce the scale of PEC (except from 2001 to 2005). Finally, the structural effect of the energy supply increased rather than decreased China's PEC, and the effect of industrial structure adjustment on PEC was found to be insignificant.
