Can industrial clusters improve energy efficiency in China?
This paper uses quantitative methods to look at regional differences in energy efficiency across Chinese municipalities. The paper uses the data envelopment analysis (DEA) methodology to construct the total factor energy efficiency score for 276 Chinese municipalities over 2003-2018. It then looks at how different factors such as industrial development zones (IDZs), local government environmental stringency, and the presence of top education institutes help to explain the local energy efficiency differences. This research highlights the importance of human capital and institutional infrastructure in achieving energy efficiency gains.