Exploring the spatial aggregation and determinants of energy intensity in Guangdong province of China

Abstract Guangdong has become the province with the second largest energy consumption and the largest gross domestic product in China. Studying the energy intensity to realise the sustainable development goal of Guangdong is important. Numerous studies on energy intensity hold a common assumption that regions are spatially independent from a static and macro perspective of the country, which may not always be the case. This study focuses on investigating the spatial aggregation and determinants of Guangdong’s energy intensity using the panel data on city level from 2005 to 2016 from a spatial perspective. A novel approach based on the Global Moran-Index (Moran’s I) and Durbin model was proposed to deal with the dilemma. From the analytical results, the findings are as follows: (1) Guangdong’s energy intensity indicates a strong spatial correlation and clear spatial agglomeration characteristics; (2) Economic growth is the most important influential factor of energy intensity in Guangdong, whereas foreign direct investment has the least impact; (3) The spillover effect of technological progress is significant and can effectively reduce regional energy intensity. Moreover, the study provides references for the implementation of enhancing energy utilisation efficiency.