Which provincial administrative regions in China should reduce their coal consumption? An environmental energy input requirement function based analysis

Hong-Zhou Li, Maria Kopsakangas-Savolainen, Ming-Zhe Yan, Jian-Lin Wang and Bai-Chen Xie

Energy Policy, 2019, vol. 127, issue C, 51-63

Abstract: The study is designed to examine whether or not there are scientific grounds for Directive 2984 which was issued to reduce coal consumption by the Chinese central government in 2014. We propose a parametric stochastic frontier model that can be used to measure non-radial environmental energy efficiency, which has not been addressed so far and gather a panel data set covering 29 provincial administrative regions in Mainland China between 2000 and 2013. Our empirical results demonstrate the existence of inappropriateness and self-contradiction in this mandatory plan and offer a new list of regions for coal consumption reduction. We also recommend the implementation of regulatory impact analysis in the second round of this mandatory plan to improve transparency and consistency in the short run and the establishment of more market-based or market-mimicking incentive-compatible measures to reduce greenhouse gas emissions in the long run.

Keywords: Environment energy efficiency; Undesirable outputs; SFA; Coal consumption reduction plan; China (search for similar items in EconPapers)
Date: 2019
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (6) Track citations by RSS feed

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0301421518307675
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:enepol:v:127:y:2019:i:c:p:51-63

DOI: 10.1016/j.enpol.2018.11.037

Access Statistics for this article

Energy Policy is currently edited by N. France

More articles in Energy Policy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().