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Direct and indirect energy use in China and the United States

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  • Liu, Hongtao
  • Polenske, Karen R.
  • Guilhoto, Joaquim José Martins
  • Xi, Youmin

Abstract

Greenhouse gas reduction and energy saving are becoming two important issues in both industrialized and developing countries, and policymakers are developing means to reduce total domestic energy use. We evaluate and compare the direct and the indirect energy use both in the People's Republic of China (China) and the United States of America (US) by looking at a series of hybrid energy input–output tables (1997, 2002, and 2007). We also apply SDA (structural decomposition analysis), to identify the factors causing energy intensity (energy use per unit of gross domestic product) to differ between the two countries, which lead to potential energy-saving options. Our results show that, besides the differences in direct energy use, huge differences also exist in indirect energy use between the two countries. Differences in indirect energy use are mainly due to differences in technology. Technological change and industrial-structure change are key factors to explain the inequality of energy intensity, while there is a significant trend towards the convergence of sectoral energy efficiency between the two countries.

Suggested Citation

  • Liu, Hongtao & Polenske, Karen R. & Guilhoto, Joaquim José Martins & Xi, Youmin, 2014. "Direct and indirect energy use in China and the United States," Energy, Elsevier, vol. 71(C), pages 414-420.
  • Handle: RePEc:eee:energy:v:71:y:2014:i:c:p:414-420
    DOI: 10.1016/j.energy.2014.04.089
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    Cited by:

    1. Cui, Lian-Biao & Peng, Pan & Zhu, Lei, 2015. "Embodied energy, export policy adjustment and China's sustainable development: A multi-regional input-output analysis," Energy, Elsevier, vol. 82(C), pages 457-467.
    2. Tolga Kaya, 2017. "Unraveling the Energy use Network of Construction Sector in Turkey using Structural Path Analysis," International Journal of Energy Economics and Policy, Econjournals, vol. 7(1), pages 31-43.
    3. Changjian Wang & Fei Wang, 2015. "Structural Decomposition Analysis of Carbon Emissions and Policy Recommendations for Energy Sustainability in Xinjiang," Sustainability, MDPI, Open Access Journal, vol. 7(6), pages 1-20, June.
    4. Heinrichs, Heidi Ursula & Schumann, Diana & Vögele, Stefan & Biß, Klaus Hendrik & Shamon, Hawal & Markewitz, Peter & Többen, Johannes & Gillessen, Bastian & Gotzens, Fabian & Ernst, Anna, 2017. "Integrated assessment of a phase-out of coal-fired power plants in Germany," Energy, Elsevier, vol. 126(C), pages 285-305.
    5. Zhang, Qianxue & Liao, Hua & Hao, Yu, 2018. "Does one path fit all? An empirical study on the relationship between energy consumption and economic development for individual Chinese provinces," Energy, Elsevier, vol. 150(C), pages 527-543.

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