Spatial Spillover Effect of New Energy Development on Economic Growth in Developing Areas of China—An Empirical Test Based on the Spatial Dubin Model

Abstract

The development of new energy in developing areas should not only consider the effect on local economic growth, but also give some attention to its spillover effect for economic growth in neighboring areas and take a new path of cluster-style development and cooperative governance. On the basis of Moran’s I and the Spatial Dubin Model (SDM), this paper analyzes the spatial spillover effect of new energy development on economic growth of 21 developing areas in China from 2000 to 2017. The results show that: (1) According to the Moran’s I, there are significant economic agglomeration characteristics in the spatial distributions among different areas in the study area. (2) A comparative study using the mixed Ordinary Least Squares (OLS) method and SDM shows that new energy has a negative spillover effect on the economic growth of neighboring areas when considering spatial factors, but this negative effect is underestimated in the mixed OLS method. (3) In addition to the core explanatory variable, the spatial spillover effect of new energy on economic growth is also affected by control variables, but the degree of impact varies. The results imply that some effective policy measures, such as sustainable development mechanisms, industrial distribution, and comparative innovation, should be taken to encourage new energy development for the high quality growth in developing areas on the national, regional, and global scale.

The Spatial Spillover Effect of Clean Energy Development on Economic Development: A Case of Theoretical and Empirical Analyses from China

“…Lastly, there is also some literature on the spatial spillover effect of CED on EG [ 16 , 17 , 18 , 19 , 20 , 21 , 22 ]. Marques et al (2012) highlight the importance of considering a spatial spillover effect in the study of the relationship between CED and EG [ 16 ].…”

“…They found that renewable energy generation in Italy has positive spillover effects on the whole economy [ 17 ]. On the basis of Moran’s I and the spatial Durbin model, Bai et al (2020) researched the spatial spillover of new energy development on CG of 21 developing areas in China from 2000 to 2017, and new energy was found to have a negative spatial spillover effect on the EG of neighboring areas [ 18 ].…”

“…Based on an analysis of existing studies, we believe that spatial spillover has not yet received sufficient attention from researchers, although the existence of spatial spillover has been identified in studies of overall energy or conventional energy [ 18 , 19 ]. Moreover, we find that, except for a very few scholars such as Magnani et al (2013), most scholars (Inglesi-Lotz et al, 2015; Bao et al, 2019; Bai et al, 2020; Mohsin et al, 2021; Gyimah et al, 2021; Pereira et al, 2022; Li et al, 2022; Hou et al, 2022) use clean energy consumption as the core explanatory variable in their regression models when studying the relationship between CED and EG, rather than CEP.…”

Impact of Logistics Development on Economic Growth: An Empirical Research from Guangdong Province in China

“…In practice, it is generally necessary to determine whether the SDM can be degraded into the SAR or SEM. is needs to be tested by the Wald test, LR test, and LM test [45]. Now, we check whether the SDM can be degraded into the SAR or SEM.…”

Empirical analysis of the role of new energy transition in promoting china’s economy

“…China's energy industry is facing the defects of low energy utilization rate and poor energy structure, and the optimization of energy industry structure is urgent (Li et al, 2020). The vigorous development of new energy and the improvement of China's economy through new energy transformation are of great significance to promote China's economic development (Bai et al, 2020). The new energy industry is characterized by long capital recovery period and large investment scale, and vigorous development of new energy industry and promotion of new energy transformation require the support of government and financial related policies.…”