Will the aggregation approach affect energy efficiency performance assessment?
Aggregate energy is usually measured in the linear weighted summation of various energy types based on thermal dynamics laws. This measurement is scientific and acceptable in the physics or energy engineering world. However, it implicitly assumes that all energy types are perfectly substitutable and thus may result in distorted conclusions in energy-economy research. In economics world, production factors are usually non-linearly aggregated using Divisia approach, which is derived from microeconomic theory and considers the heterogeneity and imperfect substitutability among various energies. Using which “ruler” to measure the aggregate energy, the linear one or the others, will certainly affect the conclusions and energy saving incentives of the economic agents. Inequitable energy aggregations may bring out speculations or discouraged behaviors. According to China's current provincial energy efficiency performance assessment policy, the central government assigned the target of reducing the national aggregate energy intensity by 20% in 2006–2010 to provincial authorities in 2006. And in July 2011, the central government formally released the provincial assessment results based on conventional linear aggregation approach (coal equivalent). Our re-examination review this policy and show that the official results are quite different to that based on Divisia approach. From the perspective of economics, some local performances are overestimated and others are underestimated. To raise the equity and incentive compatibility of the assessment, we suggest the central take the imperfect substitutability or energy structure changes into consideration. We also discuss the difficulties and deficiencies when using Divisia aggregate approach.
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.
Volume (Year): 16 (2012)
Issue (Month): 7 ()
|Contact details of provider:|| Web page: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/description#description|
|Order Information:|| Postal: http://www.elsevier.com/wps/find/journaldescription.cws_home/600126/bibliographic|
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.:
- Bert M. Balk, 2005. "Divisia price and quantity indices: 80 years after," Statistica Neerlandica, Netherlands Society for Statistics and Operations Research, vol. 59(2), pages 119-158.
- Stern, David I., 2010.
Elsevier, vol. 69(7), pages 1471-1478, May.
- Liao, Hua & Wei, Yi-Ming, 2010.
"China's energy consumption: A perspective from Divisia aggregation approach,"
Elsevier, vol. 35(1), pages 28-34.
- Hua Liao & Yi-Ming Wei, 2009. "China's energy consumption: A perspective from Divisia aggregation approach," CEEP-BIT Working Papers 1, Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology.
- Chen, G.Q. & Chen, B., 2007. "Resource analysis of the Chinese society 1980-2002 based on exergy--Part 1: Fossil fuels and energy minerals," Energy Policy, Elsevier, vol. 35(4), pages 2038-2050, April.
- Cellura, Maurizio & Longo, Sonia & Mistretta, Marina, 2012. "Application of the Structural Decomposition Analysis to assess the indirect energy consumption and air emission changes related to Italian households consumption," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(2), pages 1135-1145.
- Chen, G.Q. & Chen, B., 2007. "Resource analysis of the Chinese society 1980-2002 based on energy--Part 5: Resource structure and intensity," Energy Policy, Elsevier, vol. 35(4), pages 2087-2095, April.
- Zha, Donglan & Zhou, Dequn & Ding, Ning, 2009. "The contribution degree of sub-sectors to structure effect and intensity effects on industry energy intensity in China from 1993 to 2003," Renewable and Sustainable Energy Reviews, Elsevier, vol. 13(4), pages 895-902, May.
- Liao, Hua & Fan, Ying & Wei, Yi-Ming, 2007. "What induced China's energy intensity to fluctuate: 1997-2006?," Energy Policy, Elsevier, vol. 35(9), pages 4640-4649, September.
When requesting a correction, please mention this item's handle: RePEc:eee:rensus:v:16:y:2012:i:7:p:4537-4542. 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: (Zhang, Lei)
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.