Why does energy intensity fluctuate in China?
AbstractEnergy 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.
Download InfoIf you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
Bibliographic InfoArticle provided by Elsevier in its journal Energy Policy.
Volume (Year): 37 (2009)
Issue (Month): 12 (December)
Contact details of provider:
Web page: http://www.elsevier.com/locate/enpol
Input-occupancy-output table Structure decomposition analysis Path analysis;
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Lescaroux, François, 2008. "Decomposition of US manufacturing energy intensity and elasticities of components with respect to energy prices," Energy Economics, Elsevier, vol. 30(3), pages 1068-1080, May.
- Silveria, Fernando Castellanos & Luken, Ralph A., 2008. "Global overview of industrial energy intensity," Energy Policy, Elsevier, vol. 36(7), pages 2658-2664, July.
- J. Daniel Khazzoom, 1980. "Economic Implications of Mandated Efficiency in Standards for Household Appliances," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 21-40.
- Keppler, Jan Horst & Birol, Fatih, 2000. "Prices, technology development and the rebound effect," Economics Papers from University Paris Dauphine 123456789/10972, Paris Dauphine University.
- Liao, Hua & Fan, Ying & Wei, Yi-Ming, 2007. "What induced China's energy intensity to fluctuate: 1997-2006?," Energy Policy, Elsevier, vol. 35(9), pages 4640-4649, September.
- Tiwari, Piyush, 2000. "An analysis of sectoral energy intensity in India," Energy Policy, Elsevier, vol. 28(11), pages 771-778, September.
- Richard F. Garbaccio & Mun S. Ho & Dale W. Jorgenson, 1999. "Why Has the Energy-Output Ratio Fallen in China?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 63-91.
- Ma, Chunbo & Stern, David I., 2008.
"China's changing energy intensity trend: A decomposition analysis,"
Elsevier, vol. 30(3), pages 1037-1053, May.
- Chunbo Ma & David I. Stern, 2006. "China's Changing Energy Intensity Trend: A Decomposition Analysis," Rensselaer Working Papers in Economics 0615, Rensselaer Polytechnic Institute, Department of Economics.
- Pan, Haoran, 2006. "Dynamic and endogenous change of input-output structure with specific layers of technology," Structural Change and Economic Dynamics, Elsevier, vol. 17(2), pages 200-223, June.
- John Gibson & Bongguen Kim & Hengyun Ma & Les Oxley, 2008.
"China’s Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution,"
Working Papers in Economics
08/01, University of Canterbury, Department of Economics and Finance.
- Ma, Hengyun & Oxley, Les & Gibson, John & Kim, Bonggeun, 2008. "China's energy economy: Technical change, factor demand and interfactor/interfuel substitution," Energy Economics, Elsevier, vol. 30(5), pages 2167-2183, September.
- Hengyun Ma & Les Oxley & John Gibson & Bongguen Kim, 2009. "China's Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution," Working Papers 09_02, Motu Economic and Public Policy Research.
- Hang, Leiming & Tu, Meizeng, 2007. "The impacts of energy prices on energy intensity: Evidence from China," Energy Policy, Elsevier, vol. 35(5), pages 2978-2988, May.
- Mukherjee, Kankana, 2008. "Energy use efficiency in U.S. manufacturing: A nonparametric analysis," Energy Economics, Elsevier, vol. 30(1), pages 76-96, January.
- Rose, A. & Chen, C. Y., 1991. "Sources of change in energy use in the U.S. economy, 1972-1982 : A structural decomposition analysis," Resources and Energy, Elsevier, vol. 13(1), pages 1-21, April.
- Xiaoli Han & TK. Lakshmanan, 1994. "Structural Changes and Energy Consumption in the Japanese Economy 1975-95: An Input-Output Analysis," The Energy Journal, International Association for Energy Economics, vol. 0(Number 3), pages 165-188.
- Birol, Fatih & Keppler, Jan Horst, 2000. "Prices, technology development and the rebound effect," Energy Policy, Elsevier, vol. 28(6-7), pages 457-469, June.
- Fisher-Vanden, Karen & Jefferson, Gary H. & Liu, Hongmei & Tao, Quan, 2004. "What is driving China's decline in energy intensity?," Resource and Energy Economics, Elsevier, vol. 26(1), pages 77-97, March.
- Weber, Christopher L., 2009. "Measuring structural change and energy use: Decomposition of the US economy from 1997 to 2002," Energy Policy, Elsevier, vol. 37(4), pages 1561-1570, April.
- Oikonomou, Vlasis & Jepma, Catrinus & Becchis, Franco & Russolillo, Daniele, 2008. "White Certificates for energy efficiency improvement with energy taxes: A theoretical economic model," Energy Economics, Elsevier, vol. 30(6), pages 3044-3062, November.
- Liu, Na & Ang, B.W., 2007. "Factors shaping aggregate energy intensity trend for industry: Energy intensity versus product mix," Energy Economics, Elsevier, vol. 29(4), pages 609-635, July.
- Wu, Rong-Hwa & Chen, Chia-Yon, 1990. "On the application of input-output analysis to energy issues," Energy Economics, Elsevier, vol. 12(1), pages 71-76, January.
- Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
- Sinton, Jonathan E. & Levine, Mark D., 1994. "Changing energy intensity in Chinese industry : The relatively importance of structural shift and intensity change," Energy Policy, Elsevier, vol. 22(3), pages 239-255, March.
- Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-71, August.
- Cornillie, Jan & Fankhauser, Samuel, 2004. "The energy intensity of transition countries," Energy Economics, Elsevier, vol. 26(3), pages 283-295, May.
- Wachsmann, Ulrike & Wood, Richard & Lenzen, Manfred & Schaeffer, Roberto, 2009. "Structural decomposition of energy use in Brazil from 1970 to 1996," Applied Energy, Elsevier, vol. 86(4), pages 578-587, April.
- Andrews, Clinton J. & Krogmann, Uta, 2009. "Technology diffusion and energy intensity in US commercial buildings," Energy Policy, Elsevier, vol. 37(2), pages 541-553, February.
- 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.
- 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.
- Wang, Xin, 2011. "On China's energy intensity statistics: Toward a comprehensive and transparent indicator," Energy Policy, Elsevier, vol. 39(11), pages 7284-7289.
- 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.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Zhang, Lei).
If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.
If references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link to it, you can help with this form.
If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.