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Why does energy intensity fluctuate in China?

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  • Chai, Jian
  • Guo, Ju-E
  • Wang, Shou-Yang
  • Lai, Kin Keung
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    Abstract

    Energy intensity reflects energy usage efficiency of an economy, in the process of production and consuming of economic output. Why does energy intensity fluctuate in China? In this paper, we explores the distortion of different energy prices, the change of energy structure, technological and final demand structure and their impact on energy intensity in China, based on the path analysis method and input-output structure decomposition model, respectively. And three results have been showed in this paper: first, proved that optimize the relative prices of different types of energy is the most important pricing mechanism when cut down the energy intensity; second, showed that the proportion of oil consumption is the limiting factor that has led to energy intensity change; third, built an input-output structure decomposition analysis model and analyzed technological changes, final demand structure changes, and their direct and indirect impact on energy intensity based on energy input-occupancy-output tables of 30 industry sectors of China in 1992, 1997, 2002 and 2004, which suggest that the fluctuation of energy intensity is mainly due to technology advances and the corresponding change in industrial structure.

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    File URL: http://www.sciencedirect.com/science/article/B6V2W-4X541P9-5/2/b662f507941cf66d744f59d0ff799e78
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    Bibliographic Info

    Article provided by Elsevier in its journal Energy Policy.

    Volume (Year): 37 (2009)
    Issue (Month): 12 (December)
    Pages: 5717-5731

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    Handle: RePEc:eee:enepol:v:37:y:2009:i:12:p:5717-5731

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    Web page: http://www.elsevier.com/locate/enpol

    Related research

    Keywords: Input-occupancy-output table Structure decomposition analysis Path analysis;

    References

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    Citations

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    Cited by:
    1. Su, Bin & Ang, B.W., 2012. "Structural decomposition analysis applied to energy and emissions: Some methodological developments," Energy Economics, Elsevier, vol. 34(1), pages 177-188.
    2. Youguo Zhang, 2012. "Scale, Technique and Composition Effects in Trade-Related Carbon Emissions in China," Environmental & Resource Economics, European Association of Environmental and Resource Economists, vol. 51(3), pages 371-389, March.
    3. Chai, Jian & Guo, Ju-E. & Meng, Lei & Wang, Shou-Yang, 2011. "Exploring the core factors and its dynamic effects on oil price: An application on path analysis and BVAR-TVP model," Energy Policy, Elsevier, vol. 39(12), pages 8022-8036.
    4. Zhao, Xiaoli & Li, Na & Ma, Chunbo, 2011. "Residential Energy Consumption in Urban China," Working Papers 117810, University of Western Australia, School of Agricultural and Resource Economics.
    5. Wang, Xin, 2011. "On China's energy intensity statistics: Toward a comprehensive and transparent indicator," Energy Policy, Elsevier, vol. 39(11), pages 7284-7289.
    6. Zeng, Lin & Xu, Ming & Liang, Sai & Zeng, Siyu & Zhang, Tianzhu, 2014. "Revisiting drivers of energy intensity in China during 1997–2007: A structural decomposition analysis," Energy Policy, Elsevier, vol. 67(C), pages 640-647.

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