Green efficiency of natural gas and driving factors analysis: the role of the natural gas price in China

To explore the influence of natural gas price on the green efficiency of natural gas in China, this paper first assesses the levels of green efficiency of natural gas in 30 provinces. Then, we employ the panel data of 30 provinces from 2006 to 2017 to explore the nexus by employing the S-GMM method. We also investigate the regional heterogeneity, asymmetry, and mediating mechanism. The major conclusions are highlighted as follows: (1) the green efficiency of natural gas in China has increased remarkably and now shows significant differences among provinces; (2) the increase in the natural gas price can be positively related to the green efficiency of natural gas in China, a result that is robust in the robustness tests; (3) asymmetry and regional heterogeneity exist among the nexus between price and the green efficiency of natural gas, specifically, regions with lower economic development and lower green efficiency equip a higher coefficient of price; and (4) the gas price can promote the green efficiency of gas indirectly through the consumption effect and green technology effect. Several policy implications are presented in this study to improve the green efficiency of natural gas and achieve sustainable growth in China.