The Theoretical Mechanism And Empirical Research On Urban Industry Characteristics And Energy Consumption

Based on the externality theory of agglomerative economies, this paper empirically tests the relationship between diversification, specialization and energy consumption by using 2005-2012 china’s 122 prefecture-level cities’ panel data. The paper uses ordinary panel regression model and panel quantile regression model to analyze the impact of industry specialization and diversification on energy efficiency. Specially, it is also elaborates the analysis to different quantiles of energy consumption.Firstly, this paper summarizes the related research status. First, the part of theoretical elaborates the relevant literature on the impact of urbanization and industrial structure to energy efficiency, and introduces the relevant previous studies. Then, the basic concepts of the theory of industrial agglomeration and energy consumption are described. Finally, the direct and indirect effects mechanisms of the industrial characteristics (industry specialization and diversification) on the energy efficiency are discussed.Secondly, according to the relevant theory to build the model and prepare data. Comparing the ordinary panel regression model and the panel quantile regression model, we find that the former can only measure the’average effect’of the independent variables on the dependent variable, without considering the influence of different levels of energy efficiency. Therefore previous studies have limitations. So we considered using both ordinary panel regression model and panel quantile regression methods. Because it is not easy to get the city data, we get only 122 prefecture-level city’s data for analysis through the city and all provinces Statistical Yearbook.Then, we made the empirical analysis according to the model and available data. First, according to the relevant theory put forward by Gilles Duranton and Diego Puga, the measurement methods of the urban industry specialization and diversification index are determined. According to this method, using the data from 122 cities from 2005 to 2012, we measured the degree of specialization and diversification. Then, the individual fixed effects model was established by the heterogeneity of the panel data and Hausman test. The results show that:overall, the city industry specialization has a positive impact on energy efficiency, also the industrial diversification has a significantly positive effect on energy efficiency, but there is a big difference between the significance and absolute value of coefficients. For cities with different scales, urban industrial diversification and specialization have different effects on energy efficiency. In the medium and small cities, there are significant positive effects on energy efficiency of specialization, but the influence of diversification is not significant. In big cities, both industrial specialization and diversification have positive effect on energy efficiency. Similar to the results of the big cities, the impact of megacities on energy efficiency are all positive and significant. Last, a panel quantile regression model is set up to draw the conclusion that the impact of industry specialization and diversification on energy efficiency is also different in different quantiles of energy consumption.Finally, based on the empirical results of this paper, we put forward policy recommendations to promote urban economic development and improve the efficiency of urban energy efficiency, such as making different industries development plan according to the scale of the city. These conclusions will provide a wealth of policy implications for China’s urban industrial development strategy choice and adjustment, as well as improve the efficiency of our country’s urban energy efficiency.