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Total Factor Productivity and Energy Intensity: An Empirical Study of China’s Cement Industry

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  • Hui Hu
  • Xiang Li
  • Fuxia Yang
  • Jesmin Islam

Abstract

China is the largest cement producer and consumer in the world. The cement industry’s rapid growth has led to a large demand of energy. This study reviews China’s cement industry in terms of energy intensity and examines the effects of technological progress on energy intensity. It also discusses the feasibility of achieving China’s energy reduction targets. We employ the Granger causality test and find that the total factor productivity or technological progress causes the energy intensity of the cement industry. Impulse responses analysis also proves that in the long run the technological change contributes to the decline in energy intensity of cement production.

Suggested Citation

  • Hui Hu & Xiang Li & Fuxia Yang & Jesmin Islam, 2016. "Total Factor Productivity and Energy Intensity: An Empirical Study of China’s Cement Industry," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(6), pages 1405-1413, June.
    • Handle: RePEc:mes:emfitr:v:52:y:2016:i:6:p:1405-1413
    DOI: 10.1080/1540496X.2016.1168119
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    Cited by:

    1. Hu, Hui & Xie, Nan & Fang, Debin & Zhang, Xiaoling, 2018. "The role of renewable energy consumption and commercial services trade in carbon dioxide reduction: Evidence from 25 developing countries," Applied Energy, Elsevier, vol. 211(C), pages 1229-1244.
    2. Wan, Junmin & Qiu, Qiqi, 2023. "Industrial investments and housing prices in China," International Review of Economics & Finance, Elsevier, vol. 84(C), pages 832-852.
    3. Zha, Jianping & Tan, Ting & Fan, Rong & Xu, Han & Ma, Siqi, 2020. "How to reduce energy intensity to achieve sustainable development of China's transport sector? A cross-regional comparison analysis," Socio-Economic Planning Sciences, Elsevier, vol. 71(C).

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