The spatial correlation between green investment and energy-structure optimization: Evidence from China

Abstract

As the world's largest energy consumer, China seeks ways to optimize its energy structure. Using a sample of 30 Chinese provinces, this study develops an indicator system to measure provincial-level energy-structure optimization from 2004 to 2021. We also explore the spatial spillovers of green investment and its nonlinear effects on energy-structure optimization. We find that (1) energy-structure optimization has a significant positive spatial dependence and spatial lag; (2) green investment contributes to local energy-structure optimization but inhibits it in the surrounding regions; and (3) there is regional heterogeneity in spatial spillover effects. Finally, green investment and energy-structure optimization present an M-shaped nonlinear relationship. These findings can provide a reference for the government to further develop green investment policies to optimize energy structure.

Keywords

• Green investment
• Energy structure
• Spatial spillover effect
• Nonlinear effect