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Spatial Econometric Analysis of Energy Efficiency Convergence of Chinese Provinces

Spatial patterns of energy efficiency and its spillovers have always been key issues in the energy economics. What are the effects of energy consumption and efficiency convergence? What are the driving forces behind the spatial convergence process? This paper investigates the convergence process of the energy efficiency in 29 provinces of China over 1995-2004. The data trends show some evidence of convergence over 1995-1999 while divergence over 2000-2004. And the carefully spatial econometric analysis of spatial lag model (SLM) and spatial error model (SEM) verify that energy efficiency over the same period show a convergence process or divergence in the provinces of OLS estimate when other factors are controlled. Keywords-Energy efficiency;Convergence;Spatial econometrics;