The heterogeneous effect of administrative level of cities on energy efficiency: a panel study of China

ABSTRACT Although the nexus between urbanization and energy efficiency has been evidenced at the macro level, we have less knowledge about the effects of administrative level of cities on energy efficiency. Understanding this impact mechanism is necessary to achieve goals of energy conservation and sustainable development. We estimate the relationship between the administrative level of cities and energy efficiency in China by adopting the province-level fixed-effect models from a panel dataset. The empirical findings present that energy efficiency of capital cities is 0.46 (95% Confidence Interval: −0.713, −0.206) lower than that of general cities. Moreover, these effects of administrative level are more substantial in underdeveloped cities. These findings suggest that more political sources and autonomy in the higher-level cities might lead to low energy efficiency.