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How to promote energy conservation in China’s chemical industry

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  • Lin, Boqiang
  • Long, Houyin

Abstract

Fossil fuel consumption in China’s chemical industry accounted for 19.7% of the total industrial fossil fuel consumption, and the industry has become the second highest energy intensive sector in the country. Therefore, it is extremely urgent and important to study the problems related to fossil fuel consumption in the industry. This paper adopts the factor decomposition and the EG co-integration methods to investigate the influencing factors of fossil energy consumption and measure the saving potential of fossil fuel. The paper concludes that the influencing factors can be divided into positive driving factors (labor productivity effect and sector scale effect) and negative driving factors (energy intensity effect and energy structure effect). Among them, labor productivity and energy intensity are the main factors affecting fossil fuel demand. The largest saving potentials of fossil fuels are predicted to be 23.3Mtce in 2015 and 70.6Mtce in 2020 under the middle scenario and 46.8Mtce in 2015 and 100.5Mtce in 2020 under the ideal scenario, respectively. Finally, this paper provides some policy implications on fossil fuel conservation.

Suggested Citation

  • Lin, Boqiang & Long, Houyin, 2014. "How to promote energy conservation in China’s chemical industry," Energy Policy, Elsevier, vol. 73(C), pages 93-102.
  • Handle: RePEc:eee:enepol:v:73:y:2014:i:c:p:93-102
    DOI: 10.1016/j.enpol.2014.05.056
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    Cited by:

    1. Vicent Alcántara Escolano & Emilio Padilla Rosa & Pablo del Río González, 2020. "The driving factors of CO2 emissions from electricity generation in Spain: A decomposition analysis," Working Papers wpdea2005, Department of Applied Economics at Universitat Autonoma of Barcelona.
    2. Yuhuan Zhao & Hao Li & Zhonghua Zhang & Yongfeng Zhang & Song Wang & Ya Liu, 2017. "Decomposition and scenario analysis of CO2 emissions in China’s power industry: based on LMDI method," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 86(2), pages 645-668, March.
    3. Zhong, Sheng, 2018. "Structural decompositions of energy consumption between 1995 and 2009: Evidence from WIOD," Energy Policy, Elsevier, vol. 122(C), pages 655-667.
    4. Ke Wang & Linan Che & Chunbo Ma & Yi-Ming Wei, 2017. "The Shadow Price of CO2 Emissions in China's Iron and Steel Industry," CEEP-BIT Working Papers 105, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
    5. Suyi Kim, 2017. "LMDI Decomposition Analysis of Energy Consumption in the Korean Manufacturing Sector," Sustainability, MDPI, Open Access Journal, vol. 9(2), pages 1-17, February.

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    Keywords

    LMDI; Co-integration; Fossil fuel conservation;

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