Skip to main content

Advertisement

Log in

Assessing the impact of energy internet and energy misallocation on carbon emissions: new insights from China

  • Research Article
  • Published:
Environmental Science and Pollution Research Aims and scope Submit manuscript

Abstract

With the deterioration of environmental quality caused by fossil energy use, the research on energy internet and energy misallocation is of critical relevance to achieve low-carbon sustainable development. However, we find that the relevant research that analyzes energy internet and energy misallocation on carbon emissions under the same framework is ignored. For this purpose, the generalized method of moments (GMM), panel threshold model, and spatial analysis (deviation ellipse, hotspot analysis, and geographically and temporally weighted regression (GTWR)) model were applied to investigate the impact of energy internet and energy misallocation on carbon emissions using panel data of 30 provinces in China from 2004 to 2018. The major statistical results include the following: (1) energy misallocation significantly contributes to carbon emissions, while energy internet inhibits carbon emissions. Energy internet can negatively moderate the positive effect of energy misallocation on carbon emissions. (2) The effect of energy misallocation on carbon emissions reveals an inverted “U-shaped” characteristic of first promoting and later inhibiting, but the inhibiting effect is insignificant. Moreover, the marginal effect of energy misallocation on carbon emissions decreases when the energy internet crosses the second thresholds consecutively, while the marginal effect of the energy internet on carbon emissions shows an inverted “N” shape. (3) Compared with the under-allocated regions, the promotion effect of energy misallocation on carbon emissions and the inhibitory effect of energy internet on carbon emissions are stronger in the over-allocated regions, while the energy internet has a more significant negative moderating effect on energy misallocation. (4) The gravity center of China’s carbon emissions gradually shifts to the northwest with time. The longitude of the gravity center (east–west direction) changes greatly, while the latitude of the gravity center (north–south direction) changes less. Besides, the carbon emission hotspot regions centered on Shanxi spread to the neighboring provinces, which form a high-high agglomeration region, and the cold spot region dominated by Qinghai, Guangxi, and Guangdong forms low-low agglomeration characteristics. Finally, the GTWR model shows that the impact of energy internet and energy misallocation on carbon emissions shows significant hierarchical, banded, or block-like characteristics in spatial distribution.

This is a preview of subscription content, log in via an institution to check access.

Access this article

Price excludes VAT (USA)
Tax calculation will be finalised during checkout.

Instant access to the full article PDF.

Fig. 1
Fig. 2
Fig. 3
Fig. 4
Fig. 5
Fig. 6
Fig. 7
Fig. 8

Similar content being viewed by others

Data availability

The datasets used and/or analyzed during the current study are available from the corresponding author on reasonable request.

Notes

  1. See more details: https://www.noaa.gov/news/carbon-dioxide-levels-in-atmosphere-hit-record-high-in-may.

  2. See more details: http://www.creei.cn/portal/index/index.html.

  3. See more details: https://www.iea.org/reports/world-energy-statistics-2019.

  4. See more details: https://www.iea.org/data-and-statistics.

  5. Energy misallocation refers to the deviation of energy allocation from the Pareto optimal state due to market distortion. Taking natural gas as an example, the frequent inversion of natural gas prices ostensibly lowers the ex-factory price of products, but actually inhibits the willingness of manufacturers to supply, fuels the unbridled expansion of energy-intensive industries, and slows the pace of natural gas substitution for traditional energy sources.

  6. Energy internet interconnects a large number of energy nodes consisting of distributed energy harvesting devices, distributed energy storage devices, and various types of loads, such as electric power networks, oil networks, and natural gas networks, to realize a peer-to-peer exchange and sharing network of energy flow in both directions.

  7. The eastern coast of China is rich in wind resources; the northwest has a long length of sunshine; and the southwest has a high-quality clean hydropower base.

  8. If $${\widehat{\gamma }}_{{E}_{it}}=1$$, i.e., $${\tau }_{{E}_{it}}=0$$, which means that the cost of energy use in period $$t$$ in province $$i$$ is equal to the national average and the actual allocation of energy is equal to the theoretical level at effective allocation. If $${\widehat{\gamma }}_{{E}_{it}}>1$$, i.e., $${\tau }_{{E}_{it}}<0$$, which means that the cost of energy use in period $$t$$ in province $$i$$ is low when compared to the whole area, causing energy over-allocation. Conversely, if $${\widehat{\gamma }}_{{E}_{it}}<1$$, i.e., $${\tau }_{{E}_{it}}>0$$, which indicates that the energy use cost in period t in province i is high when compared to the whole country, resulting in energy under-allocation.

  9. Due to space constraints, we only analyze the general trend of carbon emission center of gravity shift.

References

  • Al Baroudi, H., Awoyomi, A., Patchigolla, K., Jonnalagadda, K., & Anthony, E. J. (2021). A review of large-scale CO2 shipping and marine emissions management for carbon capture, utilisation and storage. Applied Energy, 287, 116510.

  • Aman AHM, Shaari N, Ibrahim R (2021) Internet of things energy system: smart applications, technology advancement, and open issues. Int J Energy Res 45(6):8389–8419

    Article  Google Scholar 

  • Arellano M, Bond S (1991) Some tests of specification for panel data: Monte Carlo evidence and an application to employment equations. Rev Econ Stud 58(2):277–297

    Article  Google Scholar 

  • Arellano M, Bover O (1995) Another look at the instrumental variable estimation of error-components models. Journal of Econometrics 68(1):29–51

    Article  Google Scholar 

  • Aye GC, Edoja PE (2017) Effect of economic growth on CO2 emission in developing countries: evidence from a dynamic panel threshold model. Cogent Economics & Finance 5(1):1379239

    Article  Google Scholar 

  • Bahramian, P., Jenkins, G. P., & Milne, F. (2021). The displacement impacts of wind power electricity generation: costly lessons from Ontario. Energy Policy, 152, 112211.

  • Bandh, S. A., Shafi, S., Peerzada, M., Rehman, T., Bashir, S., Wani, S. A., & Dar, R. (2021). Multidimensional analysis of global climate change: a review. Environmental Science and Pollution Research, 1–17.

  • Bian Y, Song K, Bai J (2019) Market segmentation, resource misallocation and environmental pollution. J Clean Prod 228:376–387

    Article  CAS  Google Scholar 

  • Brandt L, Tombe T, Zhu X (2013) Factor market distortions across time, space and sectors in China. Rev Econ Dyn 16(1):39–58

    Article  Google Scholar 

  • Brown C, Alexander P, Arneth A, Holman I, Rounsevell M (2019) Achievement of Paris climate goals unlikely due to time lags in the land system. Nat Clim Chang 9(3):203–208

    Article  Google Scholar 

  • Cao, J., & Yang, M. (2013, December). Energy internet—towards smart grid 2.0. In 2013 fourth international conference on networking and distributed computing (pp. 105–110). IEEE.

  • Cao, J., Law, S. H., Samad, A. R. B. A., Mohamad, W. N. B. W., Wang, J., & Yang, X. (2021). Impact of financial development and technological innovation on the volatility of green growth—evidence from China. Environmental Science and Pollution Research, 1–17.

  • Cao Y, Li Q, Tan Y, Li Y, Chen Y, Shao X, Zou Y (2018) A comprehensive review of energy internet: basic concept, operation and planning methods, and research prospects. Journal of Modern Power Systems and Clean Energy 6(3):399–411

    Article  Google Scholar 

  • Cheng, L., Qi, N., Zhang, F., Kong, H., & Huang, X. (2017, November). Energy internet: concept and practice exploration. In 2017 IEEE conference on energy internet and energy system integration (EI2) (pp. 1–5). IEEE.

  • Chu X, Geng H, Guo W (2019) How does energy misallocation affect carbon emission efficiency in China? An empirical study based on the spatial econometric model. Sustainability 11(7):2115

    Article  Google Scholar 

  • Cui Y, Schubert BA, Jahren AH (2020) A 23 my record of low atmospheric CO2. Geology 48(9):888–892

    Article  CAS  Google Scholar 

  • Dijkman RM, Sprenkels B, Peeters T, Janssen A (2015) Business models for the internet of things. Int J Inf Manage 35(6):672–678

    Article  Google Scholar 

  • Dong X, Yang Y, Zhao X, Feng Y, Liu C (2021) Environmental regulation, resource misallocation and industrial total factor productivity: a spatial empirical study based on China’s provincial panel data. Sustainability 13(4):2390

    Article  Google Scholar 

  • Feng, C., & Liao, X. (2020). An overview of “Energy+ Internet” in China. Journal of Cleaner Production, 258, 120630.

  • Fotheringham AS, Crespo R, Yao J (2015) Geographical and temporal weighted regression (GTWR). Geogr Anal 47(4):431–452

    Article  Google Scholar 

  • Gibbins J, Chalmers H (2008) Carbon Capture and Storage Energy Policy 36(12):4317–4322

    Google Scholar 

  • Gong J (2002) Clarifying the standard deviational ellipse. Geogr Anal 34(2):155–167

    Article  Google Scholar 

  • Guan, D., Peters, G. P., Weber, C. L., & Hubacek, K. (2009). Journey to world top emitter: an analysis of the driving forces of China’s recent CO2 emissions surge. Geophysical Research Letters, 36(4).

  • Han J, Miao J, Du G, Yan D, Miao Z (2021) Can market-oriented reform inhibit carbon dioxide emissions in China? A new perspective from factor market distortion. Sustainable Production and Consumption 27:1498–1513

    Article  Google Scholar 

  • Hansen BE (1999) Threshold effects in non-dynamic panels: estimation, testing, and inference. Journal of Econometrics 93(2):345–368

    Article  Google Scholar 

  • Hao, Y., Gai, Z., & Wu, H. (2020). How do resource misallocation and government corruption affect green total factor energy efficiency? Evidence from China. Energy Policy, 143, 111562.

  • Hao, Y., Song, J., & Shen, Z. (2021). Does industrial agglomeration affect the regional environment? Evidence from Chinese cities. Environmental Science and Pollution Research, 1–16.

  • Hossein Motlagh N, Mohammadrezaei M, Hunt J, Zakeri B (2020) Internet of things (IoT) and the energy sector. Energies 13(2):494

    Article  Google Scholar 

  • Hou W, Tian G, Guo L, Wang X, Zhang X, Ning Z (2017) Cooperative mechanism for energy transportation and storage in internet of energy. IEEE Access 5:1363–1375

    Article  Google Scholar 

  • Hsieh CT, Klenow PJ (2009) Misallocation and manufacturing TFP in China and India. Q J Econ 124(4):1403–1448

    Article  Google Scholar 

  • Hu, K., & Shi, D. (2021). The impact of government-enterprise collusion on environmental pollution in China. Journal of Environmental Management, 292, 112744.

  • Huang AQ, Crow ML, Heydt GT, Zheng JP, Dale SJ (2010) The future renewable electric energy delivery and management (FREEDM) system: the energy internet. Proc IEEE 99(1):133–148

    Article  Google Scholar 

  • Hussain SM, Nadeem F, Aftab MA, Ali I, Ustun TS (2019) The emerging energy internet: architecture, benefits, challenges, and future prospects. Electronics 8(9):1037

    Article  Google Scholar 

  • Jia, W., Kang, C., Liu, C., & Li, M. (2011). Capability of smart grid to promote low-carbon development and its benefits evaluation model. Dianli Xitong Zidonghua(Automation of Electric Power Systems), 35(1), 7–12.

  • Jiye W, Kun M, Junwei C, Zhihua C, Lingchao G, Chuang L (2015) Information technology for energy internet: a survey. Journal of Computer Research and Development 52(5):1109

    Google Scholar 

  • Ju K, Wang Q, Liu L, Zhou D (2019) Measurement of the price distortion degree for exhaustible energy resources in China: a discount rate perspective. Emerg Mark Financ Trade 55(12):2718–2737

    Article  Google Scholar 

  • Kong, Q., Peng, D., Ruijia, Z., & Wong, Z. (2021). Resource misallocation, production efficiency and outward foreign direct investment decisions of Chinese enterprises. Research in International Business and Finance, 55, 101343.

  • Li G, Lu S, Shao S, Yang L, Zhang K (2021) Do environmental regulations hamper small enterprises’ market entry? Evidence from China. Bus Strateg Environ 30(1):252–266

    Article  Google Scholar 

  • Li R, Chen L, Yuan T, Li C (2016) Optimal dispatch of zero-carbon-emission micro energy internet integrated with non-supplementary fired compressed air energy storage system. Journal of Modern Power Systems and Clean Energy 4(4):566–580

    Article  Google Scholar 

  • Lin, B., & Li, Z. (2021). Does natural gas pricing reform establish an effective mechanism in China: a policy evaluation perspective. Applied Energy, 282, 116205.

  • Liu, G., Qu, L., Zeng, R., & Gao, F. (2019). Energy internet in china. In The energy internet (pp. 265–282). Woodhead Publishing.

  • Long GQ, Li S (2021) Does the energy internet improve the efficiency of resource allocation?—theoretical mechanism and case analysis. In IOP Conference Series: Earth and Environmental Science (Vol. 691, No. 1, p. 012021). IOP Publishing

  • Margolies, R. (2015). Resource allocation for the Internet of everything: from energy harvesting tags to cellular networks. Columbia University.

  • Meng Y, Liu L, Wang J, Ran Q, Yang X, Shen J (2021) Assessing the impact of the national sustainable development planning of resource-based cities policy on pollutionemission intensity: evidence from 270 prefecture-level cities in China. Sustainability 13(13):7293

    Article  Google Scholar 

  • Mi Z, Zheng J, Meng J, Shan Y, Zheng H, Ou J, ... & Wei YM (2018) China’s energy consumption in the new normal. Earth's Future, 6(7), 1007-1016

  • Nguyen, H. P., Le, P. Q. H., Pham, V. V., Nguyen, X. P., Balasubramaniam, D., & Hoang, A. T. (2021). Application of the internet of things in 3E (efficiency, economy, and environment) factor-based energy management as smart and sustainable strategy. Energy Sources, Part A: Recovery, Utilization, and Environmental Effects, 1–23.

  • Ouyang X, Sun C (2015) Energy savings potential in China’s industrial sector: from the perspectives of factor price distortion and allocative inefficiency. Energy Economics 48:117–126

    Article  Google Scholar 

  • Ouyang X, Wei X, Sun C, Du G (2018) Impact of factor price distortions on energy efficiency: evidence from provincial-level panel data in China. Energy Policy 118:573–583

    Article  Google Scholar 

  • Ren, S., Hao, Y., Xu, L., Wu, H., & Ba, N. (2021). Digitalization and energy: how does internet development affect China’s energy consumption?. Energy Economics, 98, 105220.

  • Restuccia D, Rogerson R (2008) Policy distortions and aggregate productivity with heterogeneous establishments. Rev Econ Dyn 11(4):707–720

    Article  Google Scholar 

  • Rui, L. I. (2021). Energy internet evaluation index system under the zero carbon goal. In E3S web of conferences (Vol. 252, p. 03058). EDP Sciences.

  • Ryzhenkov M (2016) Resource misallocation and manufacturing productivity: the case of Ukraine. J Comp Econ 44(1):41–55

    Article  Google Scholar 

  • Shao, S., Liu, L., & Tian, Z. (2021). Does the environmental inequality matter? A literature review. Environmental Geochemistry and Health, 1–24.

  • Shi, D., & Yu, H. (2020). Reevaluating the subjective welfare loss of air pollution. Journal of Cleaner Production, 257, 120445.

  • Song, M., Xie, Q., & Shen, Z. (2021). Impact of green credit on high-efficiency utilization of energy in China considering environmental constraints. Energy Policy, 153, 112267.

  • Su X, Yang X, Zhang J, Yan J, Zhao J, Shen J, Ran Q (2021) Analysis of the impacts of economic growth targets and marketization on energy efficiency: evidence from China. Sustainability 13(8):4393

    Article  Google Scholar 

  • Sun C, Ma T, Ouyang X, Wang R (2021a) Does service trade globalization promote trade and low-carbon globalization? Evidence from 30 countries. Emerg Mark Financ Trade 57(5):1455–1473

    Article  Google Scholar 

  • Sun, C., Zhang, W., Luo, Y., & Li, J. (2021b). Road construction and air quality: empirical study of cities in China. Journal of Cleaner Production, 319, 128649.

  • Sun Y, Li M, Zhang M, Khan HSUD, Li J, Li Z, ... & Anaba OA (2021c). A study on China’s economic growth, green energy technology, and carbon emissions based on the Kuznets curve (EKC). Environmental Science and Pollution Research, 28(6), 7200-7211

  • Tan, R., Xu, M., & Sun, C. (2021). The impacts of energy reallocation on economic output and CO2 emissions in China. Energy Economics, 94, 105062.

  • Wang, B., Yu, M., Zhu, Y., & Bao, P. (2021a). Unveiling the driving factors of carbon emissions from industrial resource allocation in China: a spatial econometric perspective. Energy Policy, 158, 112557.

  • Wang K, Hu X, Li H, Li P, Zeng D, Guo S (2017) A survey on energy internet communications for sustainability. IEEE Transactions on Sustainable Computing 2(3):231–254

    Article  Google Scholar 

  • Wang, M., & Feng, C. (2021). The consequences of industrial restructuring, regional balanced development, and market-oriented reform for China’s carbon dioxide emissions: a multi-tier meta-frontier DEA-based decomposition analysis. Technological Forecasting and Social Change, 164, 120507.

  • Wang W, Wang J, Wulaer S, Chen B, Yang X (2021b) The effect of innovative entrepreneurial vitality on economic resilience based on a spatial perspective: economic policy uncertainty as a moderating variable. Sustainability 13(19):10677

    Article  Google Scholar 

  • Wang X, Bai M, Xie C (2019) Investigating CO2 mitigation potentials and the impact of oil price distortion in China’s transport sector. Energy Policy 130:320–327

    Article  CAS  Google Scholar 

  • Wei C, Li CZ (2017) Resource misallocation in Chinese manufacturing enterprises: evidence from firm-level data. J Clean Prod 142:837–845

    Article  Google Scholar 

  • Wu H, Hao Y, Weng JH (2019) How does energy consumption affect China’s urbanization? New evidence from dynamic threshold panel models. Energy Policy 127:24–38

    Article  Google Scholar 

  • Wu, H., Hao, Y., Ren, S., Yang, X., & Xie, G. (2021a). Does internet development improve green total factor energy efficiency? Evidence from China. Energy Policy, 153, 112247.

  • Wu H, Xia Y, Yang X, Hao Y, Ren S (2021b) Does environmental pollution promote China’s crime rate? A new perspective through government official corruption. Struct Chang Econ Dyn 57:292–307

    Article  Google Scholar 

  • Wu, H., Xu, L., Ren, S., Hao, Y., & Yan, G. (2020a). How do energy consumption and environmental regulation affect carbon emissions in China? New evidence from a dynamic threshold panel model. Resources Policy, 67, 101678.

  • Wu, Y., Heerink, N., & Yu, L. (2020b). Real estate boom and resource misallocation in manufacturing industries: evidence from China. China Economic Review, 60, 101400.

  • Wu, Y., Wu, Y., Guerrero, J. M., & Vasquez, J. C. (2021c). Digitalization and decentralization driving transactive energy internet: key technologies and infrastructures. International Journal of Electrical Power & Energy Systems, 126, 106593.

  • Yongjun Xu (2021) The development of energy internet under the strategy of carbon neutralization. Zhang Jiang Science and Technology Review 04:28–29 ((in Chinese))

    Google Scholar 

  • Xu M, Tan R (2021) Removing energy allocation distortion to increase economic output and energy efficiency in China. Energy Policy 150:112110

  • Yang M, Yang F, Sun C (2018) Factor market distortion correction, resource reallocation and potential productivity gains: an empirical study on China’s heavy industry sector. Energy Economics 69:270–279

    Article  Google Scholar 

  • Yang, P., Mi, Z., Coffman, D. M., Cao, Y. F., Yao, Y. F., & Li, J. (2021a). The impact of climate risk valuation on the regional mitigation strategies. Journal of Cleaner Production, 127786.

  • Yang, S. X., Nie, T. Q., & Li, C. C. (2021b). Research on the contribution of regional energy internet emission reduction considering time-of-use tariff. Energy, 122170.

  • Yang, S. X., Zhu, C. X., Qiao, L., & Chi, Y. Y. (2020). Dynamic assessment of energy internet’s emission reduction effect—a case study of Yanqing, Beijing. Journal of Cleaner Production, 272, 122663.

  • Yang S, Zhang D, Li D (2019) A calculation model for CO2 emission reduction of energy internet: a case study of Yanqing. Sustainability 11(9):2502

    Article  Google Scholar 

  • Yang X, Wu H, Ren S, Ran Q, Zhang J (2021c) Does the development of the internet contribute to air pollution control in China? Mechanism discussion and empirical test. Struct Chang Econ Dyn 56:207–224

    Article  Google Scholar 

  • Yang, X., Zhang, J., Ren, S., & Ran, Q. (2021d). Can the new energy demonstration city policy reduce environmental pollution? Evidence from a quasi-natural experiment in China. Journal of Cleaner Production, 287, 125015.

  • Yu, C. H., Wu, X., Lee, W. C., & Zhao, J. (2021). Resource misallocation in the Chinese wind power industry: the role of feed-in tariff policy. Energy Economics, 98, 105236.

  • Yu S, Sun Y, Niu X, Zhao C (2010) Energy internet system based on distributed renewable energy generation. Electric Power Automation Equipment 5:104–108

    Google Scholar 

  • Zhang H, Li Y, Gao DW, Zhou J (2017) Distributed optimal energy management for energy internet. IEEE Trans Industr Inf 13(6):3081–3097

    Article  Google Scholar 

  • Zhang T, Zhang F, Zhang Y (2016) Study on energy management system of energy internet. Power System Technology 40(1):146–155

    Google Scholar 

  • Zhang, W., You, J., & Lin, W. (2021). Internet plus and China industrial system’s low-carbon development. Renewable and Sustainable Energy Reviews, 151, 111499.

  • Zhihong J, Jian H, Wenzhou L, Zhe C, Ning L, Siyuan W, ... & Chang L (2018) Energy internet-a new driving force for sustainable urban development. Energy Procedia, 152, 1206-1211

  • Zhou K, Yang S, Shao Z (2016) Energy internet: the business perspective. Appl Energy 178:212–222

    Article  Google Scholar 

  • Zhou, Z., Xiong, F., Xu, C., Zhou, S., & Gong, J. (2017, April). Energy management for energy internet: a combination of game theory and big data-based renewable power forecasting. In 2017 IEEE international conference on energy internet (ICEI) (pp. 198–203). IEEE.

Download references

Acknowledgements

We thank the editor and the reviewers for their comments to improve the manuscript. We would also like to thank Abd Alwahed Dagestani from Business School of Central South University for helping to improve an earlier version of our manuscript.

Funding

The authors acknowledge financial support from the Project of National Natural Science Foundation of China (71463057), the Project of Natural Science Foundation of Xinjiang Uygur Autonomous Region (2017D01C071), and the graduate research and innovation project of Xinjiang University (XJ2021G014, XJ2021G013). The party central committee’s Xinjiang-Governance strategy theory and practice research key project (19ZJFLZ09). The usual disclaimer applies.

Author information

Authors and Affiliations

Authors

Contributions

Xiaodong Yang: conceptualization, project administration, writing—review and editing, writing—original draft. Qiying Ran: formal analysis, data curation. Bing Chen: software, visualization. Weilong Wang: writing—original draft, writing—review and editing, formal analysis. Siyu Ren: methodology, data curation, writing—review and editing, validation. Xufeng Su: writing—review and editing, validation. Jianlong Wang: writing—review and editing, writing—original draft, conceptualization, methodology, funding acquisition, supervision.

Corresponding authors

Correspondence to Weilong Wang or Jianlong Wang.

Ethics declarations

Ethics approval and consent to participate

Not applicable.

Consent for publication

Not applicable.

Competing interests

The authors declare no competing interests.

Additional information

Responsible Editor: Philippe Garrigues

Publisher's Note

Springer Nature remains neutral with regard to jurisdictional claims in published maps and institutional affiliations.

Rights and permissions

Reprints and permissions

About this article

Check for updates. Verify currency and authenticity via CrossMark

Cite this article

Yang, X., Su, X., Ran, Q. et al. Assessing the impact of energy internet and energy misallocation on carbon emissions: new insights from China. Environ Sci Pollut Res 29, 23436–23460 (2022). https://doi.org/10.1007/s11356-021-17217-8

Download citation

  • Received:

  • Accepted:

  • Published:

  • Issue Date:

  • DOI: https://doi.org/10.1007/s11356-021-17217-8

Keywords

Navigation