Revealing energy-economic inequality in China: A quantification and decomposition analysis

Abstract

Unequal exchanges of energy consumption and economic benefits among provinces hinder sustainable development, underscoring the need to evaluate trade-induced disparities. Using the latest multiregional input–output tables, we examine the transfers of energy consumption and value-added embodied in China's interregional trade. We then develop a mutual EEI index and an extended EEI index to quantify bilateral and aggregate energy–economic inequality (EEI). Finally, we employ energy-related Gini coefficients to evaluate overall inequality and identify its drivers. The results reveal that: (1) in 2017, 41.12 % of energy consumption and 32.29 % of value-added were transferred across provinces, with the north, northeast, and northwest being major net exporters of energy consumption, while the southwest and northwest were net importers of value-added; (2) the highest EEI mainly occurs between developed and less developed regions, where trade benefits concentrate in more developed regions but diminish over time, whereas disadvantaged provinces are often located in the northwest; and (3) overall EEI has widened, with heavy industry and construction as the primary contributors on the production and consumption sides, respectively, and significant influences from between-group effects and coal consumption. These findings provide insights for allocating energy-saving responsibilities and distributing economic benefits more equitably, ultimately supporting sustainable trade patterns.