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Quantitative Evaluation and Characteristic Analysis of Resource Allocation Efficiency of the Energy Industry in the Yangtze River Economic Belt

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  • Wanhao Dong

    (School of Public Finance and Administration, Shanghai Lixin University of Accounting and Finance, Shanghai 201620, China)

  • Jin Yao

    (Institute of Economics, Shanghai Academy of Social Sciences, Shanghai 200020, China)

  • Bochao Zhang

    (Institute of Economics, Shanghai Academy of Social Sciences, Shanghai 200020, China)

Abstract

The resource allocation efficiency of the energy industry in the Yangtze River economic belt is related to the green and high-quality development of the region. This study constructed a quantitative model which modified from the traditional HK model to evaluate the efficiency of energy industry resource allocation. This paper makes a quantitative evaluation of the efficiency of inter-industrial and inter-regional resource allocation of the energy industry in the Yangtze River economic belt from 2000 to 2019. The results show that: the average annual loss of total factor productivity of the energy industry in the Yangtze River economic belt is as high as 25.11% due to the misallocation of resources among the energy industries, capital misallocation, labor misallocation, and intermediate input misallocation were 12.32%, 7.08%, and 5.08%, respectively. The misallocation of resources among the energy industries of the provinces in upper, middle, and lower reaches is gradually increasing in turn. The average annual loss of total factor productivity (TFP) in the energy industry of the Yangtze River economic belt is 6.5% due to the misallocation of resources between regions. Capital misallocation, labor misallocation, and intermediate input misallocation were 2.48%, 3.40%, and 0.63%, respectively. In the upper, middle, and lower reaches of the Yangtze River, the labor force, capital, and intermediate input of each province’s energy industry were misallocated to a different extent. According to the trend of resource input in the energy industry of various provinces and cities, the middle and lower reaches of the Yangtze River also show different characteristics.

Suggested Citation

  • Wanhao Dong & Jin Yao & Bochao Zhang, 2022. "Quantitative Evaluation and Characteristic Analysis of Resource Allocation Efficiency of the Energy Industry in the Yangtze River Economic Belt," Sustainability, MDPI, vol. 14(24), pages 1-18, December.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:24:p:16971-:d:1007099
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    References listed on IDEAS

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    1. Chang-Tai Hsieh & Peter J. Klenow, 2009. "Misallocation and Manufacturing TFP in China and India," The Quarterly Journal of Economics, President and Fellows of Harvard College, vol. 124(4), pages 1403-1448.
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    3. Loren Brandt & Trevor Tombe & Xiadong Zhu, 2013. "Factor Market Distortions Across Time, Space, and Sectors in China," Review of Economic Dynamics, Elsevier for the Society for Economic Dynamics, vol. 16(1), pages 39-58, January.
    4. Hu, Haisheng & Dong, Wanhao & Zhou, Qian, 2021. "A comparative study on the environmental and economic effects of a resource tax and carbon tax in China: Analysis based on the computable general equilibrium model," Energy Policy, Elsevier, vol. 156(C).
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