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Energy structure, marginal efficiency and substitution rate: An empirical study of China

Author

Listed:
  • Han, Zhi-Yong
  • Fan, Ying
  • Jiao, Jian-Ling
  • Yan, Ji-Sheng
  • Wei, Yi-Ming

Abstract

Energy efficiency is an important factor in developing energy policies as it represents the extent to which resources support economic output. In recent literature, relevant studies have mainly focused on aggregate energy efficiency, but rarely touched on the marginal efficiency of diverse energy resources and their comparative substitution rate. During 1978–2003, China's energy efficiency continually increased; and consequently became a hot topic in contemporary literature. However, there is no empirical study on the relationship between energy structure and energy efficiency. In order to close the gap, this paper reports the empirical study of the impact of China's energy structure on its energy efficiency from 1978 to 2003. The work covered primary estimation of the marginal efficiency of coal and petroleum in China, as well as the comparative substitution rate. Results indicate that the substitution rate between petroleum and coal is a factor of 5.38.

Suggested Citation

  • Han, Zhi-Yong & Fan, Ying & Jiao, Jian-Ling & Yan, Ji-Sheng & Wei, Yi-Ming, 2007. "Energy structure, marginal efficiency and substitution rate: An empirical study of China," Energy, Elsevier, vol. 32(6), pages 935-942.
  • Handle: RePEc:eee:energy:v:32:y:2007:i:6:p:935-942
    DOI: 10.1016/j.energy.2006.10.008
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    References listed on IDEAS

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    Citations

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    Cited by:

    1. Chang, Ming-Chung, 2016. "Applying the energy productivity index that considers maximized energy reduction on SADC (Southern Africa Development Community) members," Energy, Elsevier, vol. 95(C), pages 313-323.
    2. Wang, Zhao-Hua & Zeng, Hua-Lin & Wei, Yi-Ming & Zhang, Yi-Xiang, 2012. "Regional total factor energy efficiency: An empirical analysis of industrial sector in China," Applied Energy, Elsevier, vol. 97(C), pages 115-123.
    3. Chia-Jung Tu & Ming-Chung Chang & Chiang-Ping Chen, 2016. "Progressive Time-Weighted Dynamic Energy Efficiency, Energy Decoupling Rate, and Decarbonization: An Empirical Study on G7 and BRICS," Sustainability, MDPI, Open Access Journal, vol. 8(9), pages 1-17, September.
    4. Ma, Linwei & Liu, Pei & Fu, Feng & Li, Zheng & Ni, Weidou, 2011. "Integrated energy strategy for the sustainable development of China," Energy, Elsevier, vol. 36(2), pages 1143-1154.
    5. repec:spr:nathaz:v:92:y:2018:i:3:d:10.1007_s11069-018-3269-0 is not listed on IDEAS
    6. Andrews-Speed, Philip, 2009. "China's ongoing energy efficiency drive: Origins, progress and prospects," Energy Policy, Elsevier, vol. 37(4), pages 1331-1344, April.
    7. Xiaoli, Zhao & Rui, Yang & Qian, Ma, 2014. "China's total factor energy efficiency of provincial industrial sectors," Energy, Elsevier, vol. 65(C), pages 52-61.
    8. Honma, Satoshi & Hu, Jin-Li, 2009. "Total-factor energy productivity growth of regions in Japan," Energy Policy, Elsevier, vol. 37(10), pages 3941-3950, October.
    9. Chang, Tzu-Pu & Hu, Jin-Li, 2010. "Total-factor energy productivity growth, technical progress, and efficiency change: An empirical study of China," Applied Energy, Elsevier, vol. 87(10), pages 3262-3270, October.
    10. repec:eee:energy:v:145:y:2018:i:c:p:582-591 is not listed on IDEAS
    11. Chai, Jian & Guo, Ju-E & Wang, Shou-Yang & Lai, Kin Keung, 2009. "Why does energy intensity fluctuate in China?," Energy Policy, Elsevier, vol. 37(12), pages 5717-5731, December.
    12. Kahrl, Fredrich & Roland-Holst, David, 2009. "Growth and structural change in China's energy economy," Energy, Elsevier, vol. 34(7), pages 894-903.
    13. 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.
    14. Zhao, Yuchun & Akbarzadeh, Aliakbar & Andrews, John, 2009. "Simultaneous desalination and power generation using solar energy," Renewable Energy, Elsevier, vol. 34(2), pages 401-408.
    15. Xie, Chunping & Hawkes, Adam D., 2015. "Estimation of inter-fuel substitution possibilities in China's transport industry using ridge regression," Energy, Elsevier, vol. 88(C), pages 260-267.
    16. repec:spr:annopr:v:255:y:2017:i:1:d:10.1007_s10479-015-1938-x is not listed on IDEAS
    17. repec:eee:enepol:v:110:y:2017:i:c:p:710-718 is not listed on IDEAS
    18. Lin, Boqiang & Xie, Chunping, 2014. "Energy substitution effect on transport industry of China-based on trans-log production function," Energy, Elsevier, vol. 67(C), pages 213-222.
    19. Chen, Xiude & Qin, Quande & Wei, Y.-M., 2016. "Energy productivity and Chinese local officials’ promotions: Evidence from provincial governors," Energy Policy, Elsevier, vol. 95(C), pages 103-112.
    20. Peng, Lihong & Zhang, Yiting & Wang, Yejun & Zeng, Xiaoling & Peng, Najun & Yu, Ang, 2015. "Energy efficiency and influencing factor analysis in the overall Chinese textile industry," Energy, Elsevier, vol. 93(P1), pages 1222-1229.
    21. Hu, Baiding, 2014. "Measuring plant level energy efficiency in China's energy sector in the presence of allocative inefficiency," China Economic Review, Elsevier, vol. 31(C), pages 130-144.

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