IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v286y2024ics0360544223026592.html
   My bibliography  Save this article

Impact of fossil fuel subsidies on energy-saving technological change in China

Author

Listed:
  • Li, Zhi
  • Zhao, Qing
  • Guo, Hong
  • Huang, Ruting

Abstract

Fossil energy subsidies are intended to protect consumers by lowering energy costs, but they come at a substantial cost by damaging other pillars of sustainable development. Phasing out fossil fuel subsidies has caused heated academic and policy attention in developing countries; nevertheless, the implications of fossil fuel subsidies remain controversial. The novelty of this research is the first to empirically investigate the impact of fossil fuel subsidies on energy-saving technological change. To this aim, we adopt the price-gap approach, DEA method, and IV-Probit model to estimate these effects using China's provincial data from 2003 to 2017. The results show that fossil fuel subsidies still exist in China with significant differences in fuel types. Based on our findings, technological progress exhibits an energy-saving bias between energy and capital, while a labor-saving bias between energy and labor. As for the interaction, fossil fuel subsidies significantly impact energy-saving technological change. Therefore, some strategic measures are required to reform fossil energy subsidies and promote energy-saving technologies in China.

Suggested Citation

  • Li, Zhi & Zhao, Qing & Guo, Hong & Huang, Ruting, 2024. "Impact of fossil fuel subsidies on energy-saving technological change in China," Energy, Elsevier, vol. 286(C).
    • Handle: RePEc:eee:energy:v:286:y:2024:i:c:s0360544223026592
    DOI: 10.1016/j.energy.2023.129265
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223026592
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.129265?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.

    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:286:y:2024:i:c:s0360544223026592. 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.

    We have no bibliographic references for this item. You can help adding them by using 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.