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This paper aims to examine the causal relations between economic growth, electricity consumption, and urbanization indicators. Heterogeneous panel data techniques are performed to help shed light on the importance of the heterogeneity among three economic regions within China from 2000 to 2017. Our results show that the three indicators are all stationary and cointegrated after the first difference. Heterogeneity of the Granger causality is found between these three variables varies across the eastern, central, and western economic regions in China. In the long run, the eastern region presents a similar trend as the national level that long-run Granger causality of the three variables is found. Conversely, there is a unidirectional long-run causal relationship from economic growth to electricity consumption in the central region, while there is a bi-directional long-run causal relationship between economic growth and electricity consumption in the western region in China. Our empirical findings highlight the "urbanization ladder" effect which implies that as development, urbanization factor in the eastern region may play a promotion role in the tri-variate system when the urbanization reaches a higher level, while it may lack the influence in the central and western regions of China. From a regional perspective, it is further indicated that the improvement of urbanization can be practical measures in the central and western parts of China in the long run. • Economic growth, electricity consumption, and urbanization are cointegrated in eastern, central, and western China. • Granger causalities between the three variables vary across the three economic regions in China. • Urbanization does not have a causal effect on economic growth & electricity consumption in central-western China. • It is essential to accelerate the urbanization process in the central-western areas in China in the long run. [ABSTRACT FROM AUTHOR]

The complex impact of urbanization and the enormous pressure to reduce carbon emissions are two major challenges facing China. However, few studies have considered how urbanization affects carbon emission efficiency. To explore the impact of urbanization on carbon emission efficiency, this study evaluates the carbon emission efficiency based on the panel data of 30 provinces in China from 2000 to 2016. The correlations between six factors, including the level of urbanization, and carbon efficiency were analyzed by using a stochastic frontier model that combines with the translog production function. The results suggest that, first, despite the steady improvement in China's carbon efficiency, the average carbon efficiency is 0.5730 in 2016, with room for improvement of 42.70%. Second, there is an inverted U-shaped relationship between urbanization and carbon emission efficiency. The coefficient of the urbanization level is −0.6370, and the coefficient of its square is 1.2310. In the early stage, the expansion of the scope of urbanization promotes the improvement of carbon emission efficiency. Once the urbanization level passes the critical point, the economic growth rate will lag behind the growth rate of carbon emissions. Third, economic development level, energy consumption structure, foreign trade, and government intervention are positively correlated with carbon emission efficiency. Industrial structure inhibits the improvement of carbon emission efficiency. The conclusion provides a theoretical reference for urban planning and the green economy for government policymakers. Image 1 • China's average carbon efficiency is 0.5730. • There is spatial heterogeneity in carbon emission efficiency. • The relationship between urbanization and emission efficiency is inverted U-shaped. • The economic level and energy structure are negatively correlated with efficiency. • Foreign trade and government intervention inhibit carbon emission efficiency. [ABSTRACT FROM AUTHOR]