Regional Convergence of Energy Intensity in China based on Spatial Panel Data Model

The evolution trends of energy intensity(EI) is relating to the implementation of national energy strategy. The empirical analysis of regional energy intensity convergence for 30 provinces from 1997 to 2011 and the influences of economic convergence, industry structure, foreign direct investment(FDI) and energy prices on the energy intensity convergence in China were conducted. Conclusions are as follows. Firstly, regional energy intensity significantly tends to converge in the process of decrease, and the convergence rate reached 14% per year. Secondly, the regions with higher energy intensity have lower per capita income, industrial structure level and FDI scale, but larger energy price rises. Thirdly, the upgrading of industrial structure and expansion of FDI can significantly enhance the declining rate of energy intensity, and then accelerate the process of energy intensity convergence between regions. Fourthly, the economic convergence process to a certain extent will enhance the declining rate of energy intensity in high energy intensity regions, but this acceleration effect for energy intensity convergence is not significant. Fifthly, rising energy prices will slow down the declining rate of energy intensity in high energy intensity region, while the deceleration effect is not obvious yet.