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What is the driving force of the energy productivity? Evidence from China

Author

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  • WEI Chu

    (School of Economics and Management, Zhejiang Sci-Tech University, Hangzhou 310018, China)

  • SHEN Man-hong

    (College of Economics, Zhejiang University, Hangzhou 310010, China)

Abstract

This paper identifies the determinants of energy productivity based on a basic economic growth model. Using panel data including 29 provinces from 1995 to 2007, we find that energy productivity is negatively associated with the industry sector share in GDP and the state-owned sector share in GDP, and is positively associated with the electricity share in energy consumption. In addition, we find that there exists a big gap of energy efficiency among eastern, middle and western region in China. Our results suggest that we should induce the industry development structure from the industrial sector to service sector, prompt the reform of state-owned enterprises, as well as improve the energy consumption structure dominated by coal to diversified cleaning energy.

Suggested Citation

  • WEI Chu & SHEN Man-hong, 2009. "What is the driving force of the energy productivity? Evidence from China," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 4(2), pages 265-273, June.
    • Handle: RePEc:fec:journl:v:4:y:2009:i:2:p:265-273
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    File URL: http://journal.hep.com.cn/fec/EN/10.1007/s11459-009-0015-2
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    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • O47 - Economic Development, Innovation, Technological Change, and Growth - - Economic Growth and Aggregate Productivity - - - Empirical Studies of Economic Growth; Aggregate Productivity; Cross-Country Output Convergence

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