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Can Industrial Restructuring Significantly Reduce Energy Consumption? Evidence from China

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  • Boqiang Lin
  • Guanglu Zhang

Abstract

This article uses China’s input–output (I-O) tables in 2002, 2007, and 2012 to estimate the real energy consumption of each sector after the I-O adjustment. The relationship between the sectors is further analyzed using the utility analysis method based on ecological network analysis. The empirical results show that although the traditional energy-intensive industries are the major energy-consuming sectors from a direct energy consumption perspective, large energy consumption by energy-intensive industries is transferred to downstream industries through intermediate products after the I-O adjustment. Specifically, the building industry and service sector are the sectors with the highest real energy consumption. With the upgrading and optimization of the industrial structure, the proportion of energy-intensive sectors in China is declining. However, the development of the service sector and infrastructure construction still requires large intermediate inputs. Thus, industrial restructuring cannot significantly reduce China’s total energy consumption.

Suggested Citation

  • Boqiang Lin & Guanglu Zhang, 2018. "Can Industrial Restructuring Significantly Reduce Energy Consumption? Evidence from China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 54(5), pages 1082-1095, April.
    • Handle: RePEc:mes:emfitr:v:54:y:2018:i:5:p:1082-1095
    DOI: 10.1080/1540496X.2018.1425836
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    Cited by:

    1. Li, Mengna & Pan, Xiongfeng & Yuan, Sai, 2022. "Do the national industrial relocation demonstration zones have higher regional energy efficiency?," Applied Energy, Elsevier, vol. 306(PA).
    2. Zhijun Feng & Wen Zhou & Qian Ming, 2019. "Embodied Energy Flow Patterns of the Internal and External Industries of Manufacturing in China," Sustainability, MDPI, vol. 11(2), pages 1-24, January.
    3. Yanhong Liu & Xinjian Huang & Weiliang Chen, 2019. "The Dynamic Effect of High-Tech Industries’ R&D Investment on Energy Consumption," Sustainability, MDPI, vol. 11(15), pages 1-23, July.
    4. Yanbing Mao & Kui Liu & Jizhi Zhou, 2019. "Evolution of Green Industrial Growth between Europe and China based on the Energy Consumption Model," Sustainability, MDPI, vol. 11(24), pages 1-15, December.
    5. Hao, Xiaoli & Deng, Feng, 2019. "The marginal and double threshold effects of regional innovation on energy consumption structure: Evidence from resource-based regions in China," Energy Policy, Elsevier, vol. 131(C), pages 144-154.

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