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Can expanding natural gas infrastructure mitigate CO2 emissions? Analysis of heterogeneous and mediation effects for China

Can expanding natural gas infrastructure mitigate CO2 emissions? Analysis of heterogeneous and mediation effects for China
Can expanding natural gas infrastructure mitigate CO2 emissions? Analysis of heterogeneous and mediation effects for China
To verify whether the expansion of natural gas infrastructure can effectively mitigate carbon dioxide (CO2) emissions in China, this study first investigates the impact of natural gas infrastructure on China's CO2 emissions by employing a balanced panel dataset for 30 Chinese provinces covering 2004–2017. Fully considering the potential heterogeneity and asymmetry, the two-step panel quantile regression approach is utilized. Also, to test the mediation impact mechanism between natural gas infrastructure and CO2 emissions, this study then analyzes the three major mediation effects of natural gas infrastructure on China's CO2 emissions (i.e., scale effect, technique effect, and structure effect). The empirical results indicate that expansion of the natural gas infrastructure can effectively mitigate China's CO2 emissions; however, this impact is significantly heterogeneous and asymmetric across quantiles. Furthermore, through analyzing the mediation impact mechanism, the natural gas infrastructure can indirectly affect CO2 emissions in China through the scale effect (i.e., gas population and economic effects) and structure effect (i.e., energy structure effect). Conversely, the technique effect (i.e., energy intensity effect) brought by natural gas infrastructure on CO2 emissions in China has not been significant so far. Finally, policy implications are highlighted for the Chinese government with respect to reducing CO2 emissions and promoting growth in the natural gas infrastructure.
CO emissions, Heterogeneity and asymmetry, Mediation impact mechanism, Natural gas infrastructure, Two-step panel quantile regression
0140-9883
Dong, Kangyin
e17c6934-2e95-4a19-be1b-be697ca4e165
Dong, Xiucheng
d235da1b-291c-4efe-ba32-521ab4e4d318
Ren, Xiaohang
970abdf4-ff20-4244-9952-f9ee910736ee
Dong, Kangyin
e17c6934-2e95-4a19-be1b-be697ca4e165
Dong, Xiucheng
d235da1b-291c-4efe-ba32-521ab4e4d318
Ren, Xiaohang
970abdf4-ff20-4244-9952-f9ee910736ee

Dong, Kangyin, Dong, Xiucheng and Ren, Xiaohang (2020) Can expanding natural gas infrastructure mitigate CO2 emissions? Analysis of heterogeneous and mediation effects for China. Energy Economics, 90, [104830]. (doi:10.1016/j.eneco.2020.104830).

Record type: Article

Abstract

To verify whether the expansion of natural gas infrastructure can effectively mitigate carbon dioxide (CO2) emissions in China, this study first investigates the impact of natural gas infrastructure on China's CO2 emissions by employing a balanced panel dataset for 30 Chinese provinces covering 2004–2017. Fully considering the potential heterogeneity and asymmetry, the two-step panel quantile regression approach is utilized. Also, to test the mediation impact mechanism between natural gas infrastructure and CO2 emissions, this study then analyzes the three major mediation effects of natural gas infrastructure on China's CO2 emissions (i.e., scale effect, technique effect, and structure effect). The empirical results indicate that expansion of the natural gas infrastructure can effectively mitigate China's CO2 emissions; however, this impact is significantly heterogeneous and asymmetric across quantiles. Furthermore, through analyzing the mediation impact mechanism, the natural gas infrastructure can indirectly affect CO2 emissions in China through the scale effect (i.e., gas population and economic effects) and structure effect (i.e., energy structure effect). Conversely, the technique effect (i.e., energy intensity effect) brought by natural gas infrastructure on CO2 emissions in China has not been significant so far. Finally, policy implications are highlighted for the Chinese government with respect to reducing CO2 emissions and promoting growth in the natural gas infrastructure.

Text
1-s2.0-S0140988320301705-main - Accepted Manuscript
Restricted to Repository staff only until 27 July 2022.
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More information

Accepted/In Press date: 10 June 2020
e-pub ahead of print date: 27 June 2020
Keywords: CO emissions, Heterogeneity and asymmetry, Mediation impact mechanism, Natural gas infrastructure, Two-step panel quantile regression

Identifiers

Local EPrints ID: 442082
URI: http://eprints.soton.ac.uk/id/eprint/442082
ISSN: 0140-9883
PURE UUID: d463622b-8b87-487a-be25-cba0ac4eb28b

Catalogue record

Date deposited: 07 Jul 2020 16:48
Last modified: 25 Nov 2021 23:02

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Contributors

Author: Kangyin Dong
Author: Xiucheng Dong
Author: Xiaohang Ren

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