Abstract: This paper examines the spatial relationship between national energy consumption patterns and regional air pollution. Using provincial-level data on four air pollutants and country-level measures of renewable and non-renewable energy consumption, we estimate spatial Durbin models to assess whether pollution outcomes are shaped not only by domestic energy use but also by pollution patterns in neighboring regions. The analysis relies on an inverse-distance spatial weight matrix based on regional centroids. Preliminary evidence indicates strong positive spatial dependence across all pollutants, suggesting that air pollution is clustered at the regional level. The results suggest that higher non-renewable energy consumption is consistently associated with higher regional pollution, while the role of renewable energy is more heterogeneous across pollutants. By estimating direct, indirect, and total spatial effects, the paper contributes to the literature on energy use, environmental quality, and spatial spillovers, highlighting the regional consequences of national energy choices.
Author: Myrto KASIOUMI, Nikos FATOUROS, Mingze LI
Keywords: Renewable energy; non-renewable energy; air pollution; spatial Durbin model; spatial spillovers; regional pollution; energy consumption; environmental policy