The Impact Of Energy Investment On Local Economic Development

Energy investment is one of the important infrastructure investments.It is related to the accumulation and rational allocation of capital in the development of the regional economy as other infrastructure investments.Energy investment is generally large,and it is relatively concentrated in the region due to the distribution of energy and resources in China.In the current economic transformation and energy revolution deepen,the energy investment shifts toward the direction of clean and low carbonization,but due to the lack of investment and financing mechanisms,the impetus for the energy science and technology revolution is insufficient.At the same time,energy investment is also facing the dilemma of lack of investment growth momentum,increasing investment risks and falling investment income.The impact of energy investment on regional economic development not only directly leads to an increase in national wealth through multiplier effects,but also indirectly affects the development of regional economies through cost effects and industry-related effects.In the literature review,this study found that the direction and magnitude of energy investment's effect on regional economic development are not consistent,and there are great differences.Therefore,this study no longer follows the consistent linear assumption of the relationship between energy investment and economic development.Instead,it uses the measurement index of the degree of coordination between energy investment and regional economic development levels as a threshold variable to establish a threshold panel model for the relationship between them and utilizes nearly ten years.Chinese provincial data are analyzed as samples.The empirical results show that there is a significant interval effect of energy investment on the development of regional economy.This range effect shows the difference in direction and degree as the degree of coordination between energy investment and regional economic development changes.Through the analysis of parameter estimation results,it is known that energy investment has a significant impact on regional economic development,and this effect has an interval effect as the coordination of energy investment and regional economic development level changes.When the degree of coordination is lower than the first threshold of 2.441,energy investment is relatively insufficient and the positive effect on economic development is limited.For every one percentage point increase in energy investment,the level of regional economic development has increased by 0.0196 percentage points.When the degree of coordination is higher than the first threshold of 2.441 and smaller than the second threshold of 19.301,the matching of energy investment and economic development has a positive effect on the economy.Every one percentage point increase in energy investment increases the level of regional economic development by 0.0443 percentage points.When the degree of coordination is higher than the second threshold of 19.301,there is a relative surplus of energy investment.Every one percentage point increase in energy investment will reduce the level of economic development in the region by 0.0222 percentage points.Finally,based on the existing problems of energy investment and empirical analysis results,relevant countermeasures and suggestions are proposed.