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Factors Influencing Energy Intensity in Four Chinese Industries

Author

Listed:
  • Karen Fisher-Vanden
  • Yong Hu
  • Gary Jefferson
  • Michael Rock
  • Michael Toman

Abstract

In this paper, we investigate the determinants of decline in energy intensity in four Chinese industries—pulp and paper, cement, iron and steel, and aluminum. This paper attempts to answer the following key question: For the purpose of promoting energy efficiency, do prices, technology, enterprise restructuring and other policy-related instruments affect various sectors uniformly so as to justify uniform industrial energy conservation policies, or do different industries respond significantly differently so as to require policies that are tailored to each sector separately? In this paper, we examine this question using data for China’s most energy-intensive large and medium-size enterprises over the period 1999-2004. Our results suggest that in all four industries rising energy costs are a significant contributor to the decline in energy intensity over our period of study. China’s industrial policies encouraging consolidations and scale economies also seem to have contributed to reductions in energy intensity in these four industries.

Suggested Citation

  • Karen Fisher-Vanden & Yong Hu & Gary Jefferson & Michael Rock & Michael Toman, 2016. "Factors Influencing Energy Intensity in Four Chinese Industries," The Energy Journal, , vol. 37(1_suppl), pages 153-178, January.
    • Handle: RePEc:sae:enejou:v:37:y:2016:i:1_suppl:p:153-178
    DOI: 10.5547/01956574.37.SI1.kfis
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    References listed on IDEAS

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    1. Fan, Ying & Liao, Hua & Wei, Yi-Ming, 2007. "Can market oriented economic reforms contribute to energy efficiency improvement? Evidence from China," Energy Policy, Elsevier, vol. 35(4), pages 2287-2295, April.
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    3. Hang, Leiming & Tu, Meizeng, 2007. "The impacts of energy prices on energy intensity: Evidence from China," Energy Policy, Elsevier, vol. 35(5), pages 2978-2988, May.
    4. Mielnik, Otavio & Goldemberg, Jose, 2002. "Foreign direct investment and decoupling between energy and gross domestic product in developing countries," Energy Policy, Elsevier, vol. 30(2), pages 87-89, January.
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    6. Kinoshita, Yuko, 2001. "R&D and Technology Spillovers through FDI: Innovation and Absorptive Capacity," CEPR Discussion Papers 2775, C.E.P.R. Discussion Papers.
    7. Michael T. Rock, 2012. "What can Indonesia learn from China's industrial energy saving programs?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 48(1), pages 33-55, April.
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    Cited by:

    1. Iris Claus & Les Oxley & Siqi Zheng & Cong Sun & Ye Qi & Matthew E. Kahn, 2014. "The Evolving Geography Of China'S Industrial Production: Implications For Pollution Dynamics And Urban Quality Of Life," Journal of Economic Surveys, Wiley Blackwell, vol. 28(4), pages 709-724, September.
    2. Rahko, Jaana, 2025. "Vertical spillovers and the energy intensity of European industries," Energy Economics, Elsevier, vol. 141(C).
    3. Ibn-Mohammed, T. & Serrenho, A.C. & Fujii, H. & Acquaye, A. & Morrison-Saunders, A., 2025. "Decarbonising the UK pulp, paper and printing sector: Balancing sustainability and global competitiveness through insights from LMDI and MRIO analysis," Energy Economics, Elsevier, vol. 150(C).
    4. Egidijus Norvaiša & Viktorija Bobinaitė & Inga Konstantinavičiūtė & Vaclovas Miškinis, 2024. "Energy Intensity Forecasting Models for Manufacturing Industries of “Catching Up” Economies: Lithuanian Case," Energies, MDPI, vol. 17(12), pages 1-34, June.

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    • F0 - International Economics - - General

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