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Is China’s Manufacturing Industry Efficient? Evidence from an Energy-Rebound Effect Perspective

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  • Guangyu Chen
  • Boqiang Lin
  • Bin Ye

Abstract

Majority of the increase in global energy consumption is from China; hence, studying energy issues, especially in China’s manufacturing industry (CMI), is worthwhile and of much interest in the academic field. Based on the translog cost function, we develop a research framework to study the rebound effect of CMI. Considering the effect of asymmetric energy price, we augment the energy-cost function with asymmetric influence constraint of energy price. Again, we add time series data of CMI’s capital, labor, energy, and mid-input to the model to calculate the direct rebound effect of CMI. We find that the rebound effect of CMI is 44.2%, and CMI still has large energy-conservation potentials. Based on the results of this study, some policy recommendations are provided.

Suggested Citation

  • Guangyu Chen & Boqiang Lin & Bin Ye, 2018. "Is China’s Manufacturing Industry Efficient? Evidence from an Energy-Rebound Effect Perspective," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(10), pages 2245-2257, August.
    • Handle: RePEc:mes:emfitr:v:54:y:2018:i:10:p:2245-2257
    DOI: 10.1080/1540496X.2018.1471394
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    Cited by:

    1. Yan Lu & Xu Yang & Yixiang Ma & Lean Yu, 2022. "Rebound Effect of China’s Electric Power Demand in the Context of Technological Innovation," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    2. Safarzadeh, Soroush & Rasti-Barzoki, Morteza & Hejazi, Seyed Reza, 2020. "A review of optimal energy policy instruments on industrial energy efficiency programs, rebound effects, and government policies," Energy Policy, Elsevier, vol. 139(C).

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