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The energy rebound effects across China’s industrial sectors: An output distance function approach

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  • Li, Ke
  • Zhang, Ning
  • Liu, Yanchu

Abstract

Improving energy efficiency sustainability is a target of the Chinese government. However, the effectiveness of energy conservation policy is affected by the energy rebound effect under which energy efficiency improvement reduces the effective price of energy services, thereby completely or partially offsetting the energy saved by efficiency improvement. Based on the output distance function, this paper develops an improved estimation model of the energy rebound effect, which is logically consistent with the quantities of energy savings and energy rebounds induced by technological progress. Results show that the aggregate energy rebound effect of 36 industrial sectors in China over 1998–2011 is 88.42%, which implies that most of the expected energy savings are mitigated. Investment-driven economic growth is not conducive to energy-saving and results in a strong energy rebound effect in the following year. The equipment and high-end manufacturing sectors have low levels of rebound effect, indicating that increasing the proportion of such firms in the total manufacturing sector can improve the performance of energy conservation. The high level and heterogeneity in rebound effects strongly suggest that varies strategies are necessary for energy conservation among China’s industrial sectors.

Suggested Citation

  • Li, Ke & Zhang, Ning & Liu, Yanchu, 2016. "The energy rebound effects across China’s industrial sectors: An output distance function approach," Applied Energy, Elsevier, vol. 184(C), pages 1165-1175.
  • Handle: RePEc:eee:appene:v:184:y:2016:i:c:p:1165-1175
    DOI: 10.1016/j.apenergy.2016.06.117
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    Cited by:

    1. Wen, Fenghua & Ye, Zhengke & Yang, Huaidong & Li, Ke, 2018. "Exploring the rebound effect from the perspective of household: An analysis of China's provincial level," Energy Economics, Elsevier, vol. 75(C), pages 345-356.
    2. Lin, Boqiang & Chen, Yufang & Zhang, Guoliang, 2017. "Technological progress and rebound effect in China's nonferrous metals industry: An empirical study," Energy Policy, Elsevier, vol. 109(C), pages 520-529.
    3. Qiang Du & Yi Li & Libiao Bai, 2017. "The Energy Rebound Effect for the Construction Industry: Empirical Evidence from China," Sustainability, MDPI, Open Access Journal, vol. 9(5), pages 1-11, May.
    4. Zhou, Meifang & Liu, Yu & Feng, Shenghao & Liu, Yang & Lu, Yingying, 2018. "Decomposition of rebound effect: An energy-specific, general equilibrium analysis in the context of China," Applied Energy, Elsevier, vol. 221(C), pages 280-298.
    5. Kulmer, Veronika & Seebauer, Sebastian, 2019. "How robust are estimates of the rebound effect of energy efficiency improvements? A sensitivity analysis of consumer heterogeneity and elasticities," Energy Policy, Elsevier, vol. 132(C), pages 1-14.
    6. Zhang, Yue-Jun & Peng, Hua-Rong & Su, Bin, 2017. "Energy rebound effect in China's Industry: An aggregate and disaggregate analysis," Energy Economics, Elsevier, vol. 61(C), pages 199-208.
    7. Wang, Juan & Hu, Mingming & Rodrigues, João F.D., 2018. "The evolution and driving forces of industrial aggregate energy intensity in China: An extended decomposition analysis," Applied Energy, Elsevier, vol. 228(C), pages 2195-2206.
    8. Safarzadeh, Soroush & Rasti-Barzoki, Morteza, 2019. "A game theoretic approach for pricing policies in a duopolistic supply chain considering energy productivity, industrial rebound effect, and government policies," Energy, Elsevier, vol. 167(C), pages 92-105.
    9. Kulmer, Veronika & Seebauer, Sebastian, 2017. "How Robust are Estimates of the Rebound Effect of Energy Efficiency Improvements? A Sensitivity Analysis of Consumer Heterogeneity and Elasticities," FCN Working Papers 16/2017, E.ON Energy Research Center, Future Energy Consumer Needs and Behavior (FCN).
    10. Shao, Shuai & Guo, Longfei & Yu, Mingliang & Yang, Lili & Guan, Dabo, 2019. "Does the rebound effect matter in energy import-dependent mega-cities? Evidence from Shanghai (China)," Applied Energy, Elsevier, vol. 241(C), pages 212-228.
    11. Jin, Taeyoung & Kim, Jinsoo, 2019. "A new approach for assessing the macroeconomic growth energy rebound effect," Applied Energy, Elsevier, vol. 239(C), pages 192-200.
    12. Wang, Miao & Feng, Chao, 2018. "Investigating the drivers of energy-related CO2 emissions in China’s industrial sector: From regional and provincial perspectives," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 136-147.

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