How to improve total factor energy efficiency under climate change: does export sophistication matter?

Abstract

Climate change has a profound impact on human survival and development. Climate change is an energy and economic issue, which should be driven by technology. Total factor energy efficiency (TFEE) improvement is undoubtedly a breakthrough in solving energy problems. In this paper, the fixed effect model, impulse response function, and threshold regression model are used to test the complex relationship between export sophistication and TFEE. The results reveal that export sophistication improvement leads to higher TFEE. The impulse response results verify the existence of a phased and positive correlation between export sophistication and TFEE. Finally, the relationship between export sophistication and TFEE significantly varied across different threshold levels of regional corruption score, economic development, and openness. This article led the foundation for supporting China's export sophistication promotion strategy and also provides a reference for energy efficiency improvement and energy crisis response in the post-pandemic era.

Assessing the Impact of Digital Technologies on Energy Efficiency: The Role of OFDI and Virtual Agglomeration

“…The undesirable output from the process of energy utilization, that is, environmental pollutants, can be regarded as a social cost, which offsets some of the positive effects of the desired output (Wang and Lu, 2021). TFEE emphasizes the inclusion of energy factors in the factor input variables and also considers the negative impact of unexpected output on energy utilization efficiency, which can reflect the characteristics of cooperation between energy, capital, and labor and is more in line with the connotation of economic Pareto efficiency (Liu and Li, 2023;Liu et al, 2023a;Zhang et al, 2023). In measuring the TFEE, it is necessary to master the form of the production frontier, take it as the efficiency benchmark, and measure the efficiency by the relative distance between the actual output (or input) level and the frontier .…”

Facing or retreating? Evaluating the impact of fiscal pressure and the selection preference of tax efforts among Chinese local government

“…Affected by the particular national conditions, China's current tax system has a "tax collection and administration space," the difference between the actual tax burden and the legal tax burden, which provides an effective way to adjust the level of tax collection and administration (Gao, 2006). Tax authorities and their staff have certain discretion in tax collection and administration and have flexibility in tax collection and administration (Liu J. et al, 2022).…”

Real Effective Exchange Rate and Export Sophistication: A Dynamic Panel Data Analysis

“…The idea of exporting a sophisticated basket of goods and the rationale behind the EXPY rapidly gained attention and several studies proved that there exists a positive link between export sophistication and growth (Jarreau and Poncet, 2012;Lin Weldemicael, and Wang, 2017;Poncet and Starosta de Waldemar, 2013). Furthermore, it is proved that export sophistication lowers income inequality (Hartmann, Guevara, Jara-Figueroa, Aristarán, and Hidalgo, 2017), helps countries to escape from middle income trap (Fortunato and Razo 2014), and improves the total factor energy efficiency (Liu, Xue, Mao, Irfan, and Wu, 2023). Therefore, strategies aiming at producing high tech goods and exporting them is at least as important as increasing the volume of exports.…”