Siyi Chen, Yaning Song, Chien-Chiang Lee
As a landmark project of China’s Western Development Strategy, the West-East Natural Gas Pipeline (WENGP) reshapes China’s energy system and transforms patterns of social life and household behavior. Using panel data from 295 cities in China from 2000 to 2021, this research examines the effects of the first and second lines of the WENGP on energy utilization efficiency (EUE). By treating the project’s completion as a natural experiment and employing staggered DID and spatial DID methods, we find that EUE in areas along the pipeline has increased by 10%. Additionally, the pipeline promotes EUE in economically connected areas. Mechanism analyses indicate that changes in household energy consumption preferences are the primary influencing factor. It suggests that infrastructure-induced energy transition operates largely through social and behavioral transformation rather than purely technological substitution. These results accurately identify the environmental effects of the WENGP, and provide empirical evidence for how other developing countries can achieve green development.