Energy, environment and industry: Instrumental approaches for environmental regulation on energy efficiency

As the global community grapples with the imperative to transition towards sustainable energy systems, the role of environmental regulation in fostering energy efficiency has become a critical subject of inquiry. This study investigates the relationship between environmental regulations and energy efficiency within the framework of the just energy transition, which seeks to address socio-economic disparities while advancing environmental sustainability. Through a comprehensive review of existing literature, policy analyses, and empirical studies, this research aims to elucidate the mechanisms by which environmental regulations may contribute to or hinder the enhancement of energy efficiency. Over the 15-year span from 2007 to 2021, the overall trend in environmental regulation intensity reveals a substantial reduction, plummeting from an initial measurement of 0.5646 in 2007 to a significantly lower value of 0.1237 in 2021. The positive coefficient of the quadratic term for environmental regulation indicates a U-shaped relationship between environmental regulation and energy efficiency. It is evident that energy consumption structure, environmental protection investment, and industrial agglomeration are crucial mechanisms through which environmental regulation impacts energy efficiency. By synthesizing current insights, this study endeavors to provide a nuanced understanding of the intricate interplay between environmental regulation and energy efficiency in the pursuit of a just and sustainable energy transition. The findings hold implications for policymakers, industry stakeholders, and advocates engaged in shaping effective and equitable strategies for the global energy transition.