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Total-factor energy efficiency in China’s sugar manufacturing industry

Author

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  • Lei Ru
  • Wei Si

Abstract

Purpose - – The purpose of this paper is to evaluate the total-factor energy efficiency (TFEE) in China’s sugar manufacturing industry using firm-level data from 2002/2003 to 2012/2013 crushing seasons, and further explore the determinants of TFEE. Design/methodology/approach - – Modified data envelopment analysis is used to measure the TFEE of each sugar mill during the crushing seasons. Then heteroskedastic fractional probit model is applied to estimate the determinants of TFEE because of the bounded nature of TFEE and heteroskedasticity of unbalanced panel. Findings - – The results show that throughout the crushing seasons, the average TFEE is 0.57; there are spatial differences of TFEE in Guangxi sugar industry, highest in southern area; the TFEE of foreign-owned sugar mills is larger than that of private-owned and state-owned sugar mills; the larger the enterprise size, the higher the TFEE; private ownership, large size, raw material, safe productivity, total recovery rate as well as technical progress can improve TFEE significantly. Originality/value - – This paper analyzes TFEE using a rich data set at firm level, allowing the existence of firm heterogeneity, as well as being complementary to the study of energy efficiency in China’s sugar industry. Moreover, ownership structure is involved in the determinants of TFEE, which is rarely done in literature. Lastly, heteroskedastic fractional probit model is employed to recognize the bounded nature of TFEE as well as selection bias of unbalanced panel to study the determinants of TFEE.

Suggested Citation

  • Lei Ru & Wei Si, 2015. "Total-factor energy efficiency in China’s sugar manufacturing industry," China Agricultural Economic Review, Emerald Group Publishing Limited, vol. 7(3), pages 360-373, September.
    • Handle: RePEc:eme:caerpp:v:7:y:2015:i:3:p:360-373
    DOI: 10.1108/CAER-11-2014-0131
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    Citations

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    Cited by:

    1. Mo, Qianci & Zhu, Xishan & Deng, Chenquan & Cen, Shuhai & Ye, Haibo & Wang, Chunqiang & Lu, Wei & Chen, Xiaojun & Lin, Xingsu, 2023. "Analysis on influencing factors and improvement of thermal efficiency of bagasse boilers based on performance test data," Energy, Elsevier, vol. 271(C).
    2. Lawrence, Akvile & Karlsson, Magnus & Nehler, Therese & Thollander, Patrik, 2019. "Effects of monetary investment, payback time and firm characteristics on electricity saving in energy-intensive industry," Applied Energy, Elsevier, vol. 240(C), pages 499-512.
    3. Solnørdal, Mette Talseth & Thyholdt, Sverre Braathen, 2019. "Absorptive capacity and energy efficiency in manufacturing firms – An empirical analysis in Norway," Energy Policy, Elsevier, vol. 132(C), pages 978-990.

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