Study on Regional Economic Effect of "West-East Power Transmission"

Abstract

There is a certain mismatch between China's energy distribution and economic development. In this regard, the "West-East Power Transmission" project has optimized the allocation of China's power resources by exploiting the energy potential of the west. Based on the relevant economic data of 31 provincial administrative units in China from 1995 to 2018, combined with theoretical mechanism analysis, this paper hopes to explore the regional economic effect of "west point to East transmission" by designing a dynamic two-way fixed effect DID model divided into input and output areas. It is found that the policy of "power transmission from west to East" has no significant promoting effect on the whole, but has significant promoting effect on the economy of the import area in the medium and long term. In the input area, it mainly improves the output value of the tertiary industry and promotes the optimization of industrial structure. In addition, the heterogeneity robust estimators of de Chaisemartin and D 'Haultfoeuille were also used to estimate the policy effect at the input site, and the results were similar to those of dynamic TWFE.