Balancing Environmental Regulation and Marketization: A Quantile Analysis of Energy Efficiency in China's Provinces

This study explores the impact of environmental regulations and marketization on energy efficiency in China. A moderation model and quantile regression analysis are used. The results show that command-and-control and market-based environmental regulations negatively impact energy efficiency, particularly at lower quantiles such as the 0.1 quantiles and in regions with lower energy efficiency levels. Market-based regulations also significantly reduce energy efficiency in areas with low energy efficiency, while their impact is relatively less substantial in regions with higher energy efficiency. The study concludes that advancing marketization policies represents a strategic opportunity to mitigate the adverse impacts of stringent environmental regulations on energy efficiency, thereby fostering sustainable economic development in China.