IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v238y2022ipcs0360544221022131.html
   My bibliography  Save this article

How to control China's energy consumption through technological progress: A spatial heterogeneous investigation

Author

Listed:
  • Huang, Junbing
  • Xiang, Shiqi
  • Wu, Panling
  • Chen, Xiang

Abstract

Technological progress has long been recognised as one of the most effective tools for resolving the contradiction between economic growth and energy consumption. However, previous studies assessing the impact of technological progress on energy consumption have been mostly comprehensive. Additionally, knowledge of the mechanisms influencing their relationship is limited, and the role of spatial correlation in determining regional energy consumption has been largely ignored. Using Chinese provincial data from 2000 to 2016, this study employs a slack-based version of the Malmquist-Luenberger index to measure and decompose technological progress. A dynamic spatial panel model is applied to account for spatial correlation and explore technological progress from this decomposition perspective. The estimated results show that before decomposition, technological progress is incapable of effectively decreasing energy consumption. After technological progress has been decomposed into efficiency and technical change, only the direct spillover effect of efficiency change is significant. A further decomposition for efficiency change results in a significant effect of reducing energy consumption, mostly from the direct effect of pure efficiency change. Lastly, we offer some specific recommendations for China's government to implement and better employ technological progress as a powerful tool to control energy consumption.

Suggested Citation

  • Huang, Junbing & Xiang, Shiqi & Wu, Panling & Chen, Xiang, 2022. "How to control China's energy consumption through technological progress: A spatial heterogeneous investigation," Energy, Elsevier, vol. 238(PC).
    • Handle: RePEc:eee:energy:v:238:y:2022:i:pc:s0360544221022131
    DOI: 10.1016/j.energy.2021.121965
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544221022131
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2021.121965?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Khan, Zeeshan & Malik, Muhammad Yousaf & Latif, Kashmala & Jiao, Zhilun, 2020. "Heterogeneous effect of eco-innovation and human capital on renewable & non-renewable energy consumption: Disaggregate analysis for G-7 countries," Energy, Elsevier, vol. 209(C).
    2. Shahbaz, Muhammad & Lean, Hooi Hooi, 2012. "Does financial development increase energy consumption? The role of industrialization and urbanization in Tunisia," Energy Policy, Elsevier, vol. 40(C), pages 473-479.
    3. Kong, Yuan & Feng, Chao & Yang, Jun, 2020. "How does China manage its energy market? A perspective of policy evolution," Energy Policy, Elsevier, vol. 147(C).
    4. Gene M. Grossman & Alan B. Krueger, 1995. "Economic Growth and the Environment," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 110(2), pages 353-377.
    5. Hao, Yu & Peng, Hui, 2017. "On the convergence in China's provincial per capita energy consumption: New evidence from a spatial econometric analysis," Energy Economics, Elsevier, vol. 68(C), pages 31-43.
    6. Huang, Junbing & Xiang, Shiqi & Wang, Yajun & Chen, Xiang, 2021. "Energy-saving R&D and carbon intensity in China," Energy Economics, Elsevier, vol. 98(C).
    7. Wang, Ailun & Hu, Shuo & Lin, Boqiang, 2021. "Emission abatement cost in China with consideration of technological heterogeneity," Applied Energy, Elsevier, vol. 290(C).
    8. Fare, Rolf & Shawna Grosskopf & Mary Norris & Zhongyang Zhang, 1994. "Productivity Growth, Technical Progress, and Efficiency Change in Industrialized Countries," American Economic Review, American Economic Association, vol. 84(1), pages 66-83, March.
    9. Lei Jin & Keran Duan & Xu Tang, 2018. "What Is the Relationship between Technological Innovation and Energy Consumption? Empirical Analysis Based on Provincial Panel Data from China," Sustainability, MDPI, vol. 10(1), pages 1-13, January.
    10. Kahrl, Fredrich & Roland-Holst, David, 2008. "Energy and exports in China," China Economic Review, Elsevier, vol. 19(4), pages 649-658, December.
    11. An, Hui & Xu, Jianjun & Ma, Xuejiao, 2020. "Does technological progress and industrial structure reduce electricity consumption? Evidence from spatial and heterogeneity analysis," Structural Change and Economic Dynamics, Elsevier, vol. 52(C), pages 206-220.
    12. Liu, Zuankuo & Xin, Li, 2019. "Has China's Belt and Road Initiative promoted its green total factor productivity？——Evidence from primary provinces along the route," Energy Policy, Elsevier, vol. 129(C), pages 360-369.
    13. Wu, Yinyin & Wang, Ping & Liu, Xin & Chen, Jiandong & Song, Malin, 2020. "Analysis of regional carbon allocation and carbon trading based on net primary productivity in China," China Economic Review, Elsevier, vol. 60(C).
    14. Li, Ke & Lin, Boqiang, 2018. "How to promote energy efficiency through technological progress in China?," Energy, Elsevier, vol. 143(C), pages 812-821.
    15. Chen, Jiandong & Xu, Chong & Shahbaz, Muhammad & Song, Malin, 2021. "Interaction determinants and projections of China’s energy consumption: 1997–2030," Applied Energy, Elsevier, vol. 283(C).
    16. Hualin Xie & Guiying Liu & Qu Liu & Peng Wang, 2014. "Analysis of Spatial Disparities and Driving Factors of Energy Consumption Change in China Based on Spatial Statistics," Sustainability, MDPI, vol. 6(4), pages 1-17, April.
    17. Yu, Yantuan & Zhang, Ning & Kim, Jong Dae, 2020. "Impact of urbanization on energy demand: An empirical study of the Yangtze River Economic Belt in China," Energy Policy, Elsevier, vol. 139(C).
    18. Gilio, Leandro & Azanha Ferraz Dias de Moraes, Márcia, 2016. "Sugarcane industry's socioeconomic impact in São Paulo, Brazil: A spatial dynamic panel approach," Energy Economics, Elsevier, vol. 58(C), pages 27-37.
    19. Lin, Boqiang & Liu, Xia, 2012. "Dilemma between economic development and energy conservation: Energy rebound effect in China," Energy, Elsevier, vol. 45(1), pages 867-873.
    20. Adams, F. Gerard & Shachmurove, Yochanan, 2008. "Modeling and forecasting energy consumption in China: Implications for Chinese energy demand and imports in 2020," Energy Economics, Elsevier, vol. 30(3), pages 1263-1278, May.
    21. Zhang, Xi & Geng, Yong & Shao, Shuai & Wilson, Jeffrey & Song, Xiaoqian & You, Wei, 2020. "China’s non-fossil energy development and its 2030 CO2 reduction targets: The role of urbanization," Applied Energy, Elsevier, vol. 261(C).
    22. Wang, Zhaohua & Feng, Chao, 2015. "Sources of production inefficiency and productivity growth in China: A global data envelopment analysis," Energy Economics, Elsevier, vol. 49(C), pages 380-389.
    23. Huang, Junbing & Du, Dan & Hao, Yu, 2017. "The driving forces of the change in China's energy intensity: An empirical research using DEA-Malmquist and spatial panel estimations," Economic Modelling, Elsevier, vol. 65(C), pages 41-50.
    24. Pérez, Karen & González-Araya, Marcela C. & Iriarte, Alfredo, 2017. "Energy and GHG emission efficiency in the Chilean manufacturing industry: Sectoral and regional analysis by DEA and Malmquist indexes," Energy Economics, Elsevier, vol. 66(C), pages 290-302.
    25. Hong, Jingke & Li, Clyde Zhengdao & Shen, Qiping & Xue, Fan & Sun, Bingxia & Zheng, Wei, 2017. "An Overview of the driving forces behind energy demand in China's construction industry: Evidence from 1990 to 2012," Renewable and Sustainable Energy Reviews, Elsevier, vol. 73(C), pages 85-94.
    26. Chica-Olmo, Jorge & Sari-Hassoun, Salaheddine & Moya-Fernández, Pablo, 2020. "Spatial relationship between economic growth and renewable energy consumption in 26 European countries," Energy Economics, Elsevier, vol. 92(C).
    27. Baz, Khan & Xu, Deyi & Ampofo, Gideon Minua Kwaku & Ali, Imad & Khan, Imran & Cheng, Jinhua & Ali, Hashmat, 2019. "Energy consumption and economic growth nexus: New evidence from Pakistan using asymmetric analysis," Energy, Elsevier, vol. 189(C).
    28. Feng, Chao & Wang, Miao & Liu, Guan-Chun & Huang, Jian-Bai, 2017. "Sources of economic growth in China from 2000–2013 and its further sustainable growth path: A three-hierarchy meta-frontier data envelopment analysis," Economic Modelling, Elsevier, vol. 64(C), pages 334-348.
    29. Tone, Kaoru, 2001. "A slacks-based measure of efficiency in data envelopment analysis," European Journal of Operational Research, Elsevier, vol. 130(3), pages 498-509, May.
    30. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Oryani, Bahareh & Kamyab, Hesam & Mоridiаn, Аli & Azizi, Zahra & Rezania, Shahabaldin & Chelliapan, Shreeshivadasan, 2022. "Does structural change boost the energy demand in a fossil fuel-driven economy? New evidence from Iran," Energy, Elsevier, vol. 254(PC).
    2. Hao, Yu & Guo, Yunxia & Li, Suixin & Luo, Shiyue & Jiang, Xueting & Shen, Zhiyang & Wu, Haitao, 2022. "Towards achieving the sustainable development goal of industry: How does industrial agglomeration affect air pollution?," Innovation and Green Development, Elsevier, vol. 1(1).
    3. Yong He & Hongyan Zuo & Nuo Liao, 2023. "Assessing the impact of reverse technology spillover of outward foreign direct investment on energy efficiency," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 25(5), pages 4385-4410, May.
    4. Che, Shuai & Wang, Jun, 2022. "Policy effectiveness of market-oriented energy reform: Experience from China energy-consumption permit trading scheme," Energy, Elsevier, vol. 261(PB).
    5. Huang, Junbing & Luan, Bingjiang & He, Wanrui & Chen, Xiang & Li, Mengfan, 2022. "Energy technology of conservation versus substitution and energy intensity in China," Energy, Elsevier, vol. 244(PA).
    6. Hui Zhang & Haiqian Ke, 2022. "Spatial Spillover Effects of Directed Technical Change on Urban Carbon Intensity, Based on 283 Cities in China from 2008 to 2019," IJERPH, MDPI, vol. 19(3), pages 1-19, February.
    7. Luan, Bingjiang & Zou, Hong & Huang, Junbing, 2023. "Digital divide and household energy poverty in China," Energy Economics, Elsevier, vol. 119(C).
    8. Chang, Kai & Long, Yu & Yang, Jiahui & Zhang, Huijia & Xue, Chenqi & Liu, Jianing, 2022. "Effects of subsidy and tax rebate policies on green firm research and development efficiency in China," Energy, Elsevier, vol. 258(C).
    9. Choi, Donghyun & Kim, Yeong Jae, 2023. "Local and global experience curves for lumpy and granular energy technologies," Energy Policy, Elsevier, vol. 174(C).
    10. Huiping Wang & Peiling Liu, 2023. "Spatial Correlation Network of Energy Consumption and Its Influencing Factors in the Yangtze River Delta Urban Agglomeration," Sustainability, MDPI, vol. 15(4), pages 1-20, February.
    11. Huang, Junbing & Wang, Yajun & Guo, Lili, 2022. "Energy intensity and energy-specific technological progress: A case study in Guangdong province of China," Renewable Energy, Elsevier, vol. 184(C), pages 990-1001.
    12. Song, Xiaoxin & Li, Rongrong, 2023. "Tracing and excavating critical paths and sectors for embodied energy consumption in global supply chains: A case study of China," Energy, Elsevier, vol. 284(C).
    13. Hu, Changshuai & Du, Dan & Huang, Junbing, 2023. "The driving effect of energy demand evolution: From the perspective of heterogeneity in technology," Energy, Elsevier, vol. 275(C).
    14. Bangjun, Wang & Linyu, Cui & Feng, Ji & Yue, Wang, 2023. "Research on club convergence effect and its influencing factors of per capita energy consumption: Evidence from the data of 243 prefecture-level cities in China," Energy, Elsevier, vol. 263(PB).
    15. Liu, Jie & Qian, Haoqi & Zhang, Qian & Lin, Zhiyan & Siano, Pierluigi, 2023. "Corruption induced energy inefficiencies: Evidence from China's energy investment projects," Energy Policy, Elsevier, vol. 183(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hu, Changshuai & Du, Dan & Huang, Junbing, 2023. "The driving effect of energy demand evolution: From the perspective of heterogeneity in technology," Energy, Elsevier, vol. 275(C).
    2. Huang, Junbing & Chen, Xiang & Cai, Xiaochen & Zou, Hong, 2021. "Assessing the impact of energy-saving R&D on China’s energy consumption: Evidence from dynamic spatial panel model," Energy, Elsevier, vol. 218(C).
    3. Wang, Xiong & Wang, Xiao & Ren, Xiaohang & Wen, Fenghua, 2022. "Can digital financial inclusion affect CO2 emissions of China at the prefecture level? Evidence from a spatial econometric approach," Energy Economics, Elsevier, vol. 109(C).
    4. Wang, You & Gong, Xu, 2022. "Analyzing the difference evolution of provincial energy consumption in China using the functional data analysis method," Energy Economics, Elsevier, vol. 105(C).
    5. Daberechi Chikezie Ekwueme & Taiwo Temitope Lasisi & Kayode Kolawole Eluwole, 2023. "Environmental sustainability in Asian countries: Understanding the criticality of economic growth, industrialization, tourism import, and energy use," Energy & Environment, , vol. 34(5), pages 1592-1618, August.
    6. Meiling Wang & Silu Pang & Ikram Hmani & Ilham Hmani & Cunfang Li & Zhengxia He, 2021. "Towards sustainable development: How does technological innovation drive the increase in green total factor productivity?," Sustainable Development, John Wiley & Sons, Ltd., vol. 29(1), pages 217-227, January.
    7. Huang, He & Hong, Jingke & Wang, Xianzhu & Chang-Richards, Alice & Zhang, Jingxiao & Qiao, Bei, 2022. "A spatiotemporal analysis of the driving forces behind the energy interactions of the Chinese economy: Evidence from static and dynamic perspectives," Energy, Elsevier, vol. 239(PB).
    8. Doğan, Buhari & Ghosh, Sudeshna & Hoang, Dung Phuong & Chu, Lan Khanh, 2022. "Are economic complexity and eco-innovation mutually exclusive to control energy demand and environmental quality in E7 and G7 countries?," Technology in Society, Elsevier, vol. 68(C).
    9. Zhou, Anhua & Li, Jun, 2021. "Investigate the impact of market reforms on the improvement of manufacturing energy efficiency under China’s provincial-level data," Energy, Elsevier, vol. 228(C).
    10. Jiang Du & Mengqin Zhao & Ming Zeng & Kezhen Han & Huaping Sun, 2020. "Spatial Effects of Urban Agglomeration on Energy Efficiency: Evidence from China," Sustainability, MDPI, vol. 12(8), pages 1-19, April.
    11. Pan Rao & Xiaojin Liu & Shubin Zhu & Xiaolan Kang & Xinglei Zhao & Fangting Xie, 2022. "Does the Application of ICTs Improve the Efficiency of Agricultural Carbon Reduction? Evidence from Broadband Adoption in Rural China," IJERPH, MDPI, vol. 19(13), pages 1-19, June.
    12. Muhammad Shahbaz & Avik Sinha & Andreas Kontoleon, 2022. "Decomposing scale and technique effects of economic growth on energy consumption: Fresh evidence from developing economies," International Journal of Finance & Economics, John Wiley & Sons, Ltd., vol. 27(2), pages 1848-1869, April.
    13. Xu, Lan & Yang, Jun & Cheng, Jixin & Dong, Hanghang, 2022. "How has China's low-carbon city pilot policy influenced its CO2 abatement costs? Analysis from the perspective of the shadow price," Energy Economics, Elsevier, vol. 115(C).
    14. Zhang, Qianxiao & Shah, Syed Ale Raza & Yang, Ling, 2022. "An Appreciated Response of Disaggregated Energies Consumption towards the Sustainable Growth: A debate on G-10 Economies," Energy, Elsevier, vol. 254(PA).
    15. Li, Ke & Lin, Boqiang, 2015. "Impacts of urbanization and industrialization on energy consumption/CO2 emissions: Does the level of development matter?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1107-1122.
    16. Iftikhar Yasin & Nawaz Ahmad & M. Aslam Chaudhary, 2020. "Catechizing the Environmental-Impression of Urbanization, Financial Development, and Political Institutions: A Circumstance of Ecological Footprints in 110 Developed and Less-Developed Countries," Social Indicators Research: An International and Interdisciplinary Journal for Quality-of-Life Measurement, Springer, vol. 147(2), pages 621-649, January.
    17. Liu, Tie-Ying & Lee, Chien-Chiang, 2020. "Convergence of the world’s energy use," Resource and Energy Economics, Elsevier, vol. 62(C).
    18. Zhang, Qianxue & Liao, Hua & Hao, Yu, 2018. "Does one path fit all? An empirical study on the relationship between energy consumption and economic development for individual Chinese provinces," Energy, Elsevier, vol. 150(C), pages 527-543.
    19. Huang, Junbing & Luan, Bingjiang & He, Wanrui & Chen, Xiang & Li, Mengfan, 2022. "Energy technology of conservation versus substitution and energy intensity in China," Energy, Elsevier, vol. 244(PA).
    20. Huang, Junbing & Li, Xinghao & Wang, Yajun & Lei, Hongyan, 2021. "The effect of energy patents on China's carbon emissions: Evidence from the STIRPAT model," Technological Forecasting and Social Change, Elsevier, vol. 173(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:energy:v:238:y:2022:i:pc:s0360544221022131. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/energy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.