Effects of substituting energy with capital on China's aggregated energy and environmental efficiency
Substituting energy with capital (SEC) in economic productions has become a common practice both for business owners and policy-makers to improve their energy and environmental efficiency. However, seldom previous studies on energy efficiency and/or environmental performance evaluation took this role into account. This paper aims to shed some light on the effects of SEC on China's aggregated energy and environmental efficiency (AEEE) within a parametric stochastic frontier analysis framework. Moreover, influencing factors of regional efficiency score are also discussed using a pooled regression model. The results indicate that SEC poses significant effects on improving China's AEEE, and this impact appears obvious regional variation that regions with lower efficiency scores hold more extensive potential to improve their AEEE by means of SEC. Furthermore, upgrading industrial structure and decreasing the proportion of coal in energy consumption make great sense to improve China's AEEE.
If you experience problems downloading a file, check if you have the proper application to view it first. In case of further problems read the IDEAS help page. Note that these files are not on the IDEAS site. Please be patient as the files may be large.
As the access to this document is restricted, you may want to look for a different version under "Related research" (further below) or search for a different version of it.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Ma, Chunbo & Stern, David I., 2008.
"China's changing energy intensity trend: A decomposition analysis,"
Elsevier, vol. 30(3), pages 1037-1053, May.
- Chunbo Ma & David I. Stern, 2006. "China's Changing Energy Intensity Trend: A Decomposition Analysis," Rensselaer Working Papers in Economics 0615, Rensselaer Polytechnic Institute, Department of Economics.
- Yeh, Tsai-lien & Chen, Tser-yieth & Lai, Pei-ying, 2010. "A comparative study of energy utilization efficiency between Taiwan and China," Energy Policy, Elsevier, vol. 38(5), pages 2386-2394, May.
- John Gibson & Bongguen Kim & Hengyun Ma & Les Oxley, 2008.
"China’s Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution,"
Working Papers in Economics
08/01, University of Canterbury, Department of Economics and Finance.
- Ma, Hengyun & Oxley, Les & Gibson, John & Kim, Bonggeun, 2008. "China's energy economy: Technical change, factor demand and interfactor/interfuel substitution," Energy Economics, Elsevier, vol. 30(5), pages 2167-2183, September.
- Hengyun Ma & Les Oxley & John Gibson & Bongguen Kim, 2009. "China's Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution," Working Papers 09_02, Motu Economic and Public Policy Research.
- Ozatalay, Savas & Grubaugh, Stephen & Long, Thomas Veach, II, 1979. "Energy Substitution and National Energy Policy," American Economic Review, American Economic Association, vol. 69(2), pages 369-371, May.
- Dixon, Robert K. & McGowan, Elizabeth & Onysko, Ganna & Scheer, Richard M., 2010. "US energy conservation and efficiency policies: Challenges and opportunities," Energy Policy, Elsevier, vol. 38(11), pages 6398-6408, November.
- Fan, Ying & Liao, Hua & Wei, Yi-Ming, 2007. "Can market oriented economic reforms contribute to energy efficiency improvement? Evidence from China," Energy Policy, Elsevier, vol. 35(4), pages 2287-2295, April.
- Lin, Tyrone T. & Huang, Shio-Ling, 2010. "An entry and exit model on the energy-saving investment strategy with real options," Energy Policy, Elsevier, vol. 38(2), pages 794-802, February.
- Tovar, Beatriz & Martín-Cejas, Roberto Rendeiro, 2010. "Technical efficiency and productivity changes in Spanish airports: A parametric distance functions approach," Transportation Research Part E: Logistics and Transportation Review, Elsevier, vol. 46(2), pages 249-260, March.
- Tim Coelli & Sergio Perelman, 2000. "Technical efficiency of European railways: a distance function approach," Applied Economics, Taylor & Francis Journals, vol. 32(15), pages 1967-1976.
- Zhang, Bing & Bi, Jun & Fan, Ziying & Yuan, Zengwei & Ge, Junjie, 2008. "Eco-efficiency analysis of industrial system in China: A data envelopment analysis approach," Ecological Economics, Elsevier, vol. 68(1-2), pages 306-316, December.
- Boyd, Gale A. & Pang, Joseph X., 2000. "Estimating the linkage between energy efficiency and productivity," Energy Policy, Elsevier, vol. 28(5), pages 289-296, May.
- Price, Lynn & Levine, Mark D. & Zhou, Nan & Fridley, David & Aden, Nathaniel & Lu, Hongyou & McNeil, Michael & Zheng, Nina & Qin, Yining & Yowargana, Ping, 2011. "Assessment of China's energy-saving and emission-reduction accomplishments and opportunities during the 11th Five Year Plan," Energy Policy, Elsevier, vol. 39(4), pages 2165-2178, April.
- Feng, Taiwen & Sun, Linyan & Zhang, Ying, 2009. "The relationship between energy consumption structure, economic structure and energy intensity in China," Energy Policy, Elsevier, vol. 37(12), pages 5475-5483, December.
- Shi, Guang-Ming & Bi, Jun & Wang, Jin-Nan, 2010. "Chinese regional industrial energy efficiency evaluation based on a DEA model of fixing non-energy inputs," Energy Policy, Elsevier, vol. 38(10), pages 6172-6179, October.
- Andrews-Speed, Philip, 2009. "China's ongoing energy efficiency drive: Origins, progress and prospects," Energy Policy, Elsevier, vol. 37(4), pages 1331-1344, April.
- Hu, Jin-Li & Lio, Mon-Chi & Yeh, Fang-Yu & Lin, Cheng-Hsun, 2011. "Environment-adjusted regional energy efficiency in Taiwan," Applied Energy, Elsevier, vol. 88(8), pages 2893-2899, August.
- Smyth, Russell & Narayan, Paresh Kumar & Shi, Hongliang, 2011. "Substitution between energy and classical factor inputs in the Chinese steel sector," Applied Energy, Elsevier, vol. 88(1), pages 361-367, January.
- Bian, Yiwen & Yang, Feng, 2010. "Resource and environment efficiency analysis of provinces in China: A DEA approach based on Shannon's entropy," Energy Policy, Elsevier, vol. 38(4), pages 1909-1917, April.
- Cuesta, Rafael A. & Knox, C.A. & Zofío, José Luis, 2007.
"Environmental Efficiency Measurement with Translog Distance Functions: A Parametric Approach,"
Working Papers in Economic Theory
2007/02, Universidad Autónoma de Madrid (Spain), Department of Economic Analysis (Economic Theory and Economic History).
- Cuesta, Rafael A. & Lovell, C.A. Knox & Zofío, José L., 2009. "Environmental efficiency measurement with translog distance functions: A parametric approach," Ecological Economics, Elsevier, vol. 68(8-9), pages 2232-2242, June.
- Fare, Rolf & Grosskopf, Shawna & Noh, Dong-Woon & Weber, William, 2005. "Characteristics of a polluting technology: theory and practice," Journal of Econometrics, Elsevier, vol. 126(2), pages 469-492, June.
- Seiford, Lawrence M. & Thrall, Robert M., 1990. "Recent developments in DEA : The mathematical programming approach to frontier analysis," Journal of Econometrics, Elsevier, vol. 46(1-2), pages 7-38.
- Rafael Cuesta & José Zofío, 2005. "Hyperbolic Efficiency and Parametric Distance Functions: With Application to Spanish Savings Banks," Journal of Productivity Analysis, Springer, vol. 24(1), pages 31-48, 09.
- Fare, Rolf & Grosskopf, Shawna & Pasurka, Carl Jr., 2007. "Pollution abatement activities and traditional productivity," Ecological Economics, Elsevier, vol. 62(3-4), pages 673-682, May.
- Chung, William, 2011. "Review of building energy-use performance benchmarking methodologies," Applied Energy, Elsevier, vol. 88(5), pages 1470-1479, May.
- Wang, Bing & Kocaoglu, Dundar F. & Daim, Tugrul U. & Yang, Jiting, 2010. "A decision model for energy resource selection in China," Energy Policy, Elsevier, vol. 38(11), pages 7130-7141, November.
- Zhou, P. & Ang, B.W., 2008. "Linear programming models for measuring economy-wide energy efficiency performance," Energy Policy, Elsevier, vol. 36(8), pages 2901-2906, August.
- Jun Zhang, 2008. "Estimation of China's provincial capital stock (1952-2004) with applications," Journal of Chinese Economic and Business Studies, Taylor & Francis Journals, vol. 6(2), pages 177-196.
- Hu, Jin-Li & Wang, Shih-Chuan, 2006. "Total-factor energy efficiency of regions in China," Energy Policy, Elsevier, vol. 34(17), pages 3206-3217, November.
- Ma, Hengyun & Oxley, Les & Gibson, John, 2009. "Substitution possibilities and determinants of energy intensity for China," Energy Policy, Elsevier, vol. 37(5), pages 1793-1804, May.
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:39:y:2011:i:10:p:6065-6072. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.