The influence of market segmentation on energy efficiency in electric power industry: Empirical evidence from China

In this paper, panel data from 30 provinces in China from 1999 to 2019 were selected. In using empirical research based on a two-way fixed effects model, this paper explores the impact of market segmentation on energy efficiency in electric power industry (EEE) and explores how the impact varies under different traffic accessibility levels. The results of study show that: Firstly, market segmentation inhibits the improvement of EEE. Secondly, traffic infrastructure has a positive moderating effect on EEE, that is, the more developed the traffic infrastructure is, the weaker the inhibiting effect of market segmentation on EEE is. Thirdly, empirical research methods based on a two-way fixed effects model is more accurate and reliable in measuring the impact of market segmentation on EEE. Such a method is an extension of traditional EEE analysis models. From the perspective of EEE, this paper discusses the moderating effects of transportation infrastructure development in the context of market segmentation, providing a theoretical foundation and decision-making basis for improving EEE.