Analyzing the dynamic effect of energy endowment-demand distortion on sustainable development: Insights from China's regional disparity

The distribution of China's energy resources is concentrated in the central and western regions, whereas the energy demand is predominantly centered in the eastern regions. Under the ambitious "carbon neutrality" goal, how to effectively quantify and respond to the impact of this energy "endowment-demand" distortion (EEDD) on economy and environment has become a key issue. We introduce an EEDD index that quantifies the distortion characteristics of China's energy endowment and demand. Based on the EEDD index, a panel vector auto regression-generalized method of moments (PVAR-GMM) model is adopted to assess the interactive effects between regional EEDD and sustainable development variables. The obtained results indicate that the energy endowment-demand distortions are progressively worsening across most provinces. Interestingly, we discover that the EEDD has significant beneficial effects on regional sustainable development. Moreover, the EEDD is found to be significantly influenced by the sustainability-related variables. These impacts between EEDD and sustainable development variables demonstrate significant regional heterogeneity. This study provides crucial empirical evidence for advancing the comprehensive and sustainable development of regional energy, environment, and economy.