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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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    Cited by:

    1. Victor Ajayi & David Reiner, 2018. "European Industrial Energy Intensity: The Role of Innovation 1995-2009," Working Papers EPRG 1818, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    2. Le Tang, 2020. "Energy prices and investment in energy efficiency: evidence from Chinese industry 1997–2004," Asian-Pacific Economic Literature, The Crawford School, The Australian National University, vol. 34(2), pages 93-105, November.
    3. Liu, Liang & Yang, Kun & Fujii, Hidemichi & Liu, Jun, 2021. "Artificial intelligence and energy intensity in China’s industrial sector: Effect and transmission channel," Economic Analysis and Policy, Elsevier, vol. 70(C), pages 276-293.
    4. Bhat, Javed Ahmad & Haider, Salman & Kamaiah, Bandi, 2018. "Interstate energy efficiency of Indian paper industry: A slack-based non-parametric approach," Energy, Elsevier, vol. 161(C), pages 284-298.
    5. Lu & Pollitt, M. G. & Wang, K. & Wei, Y-M., 2023. "The Incremental Impact of China's Carbon," Cambridge Working Papers in Economics 2349, Faculty of Economics, University of Cambridge.
    6. Singer, Gregor, 2024. "Complementary inputs and industrial development: can lower electricity prices improve energy efficiency?," LSE Research Online Documents on Economics 122365, London School of Economics and Political Science, LSE Library.
    7. Xiekui Zhang & Peiyao Liu & Hongfei Zhu, 2022. "The Impact of Industrial Intelligence on Energy Intensity: Evidence from China," Sustainability, MDPI, vol. 14(12), pages 1-16, June.
    8. Cui, Huanyu & Cao, Yuequn, 2023. "How can market-oriented environmental regulation improve urban energy efficiency? Evidence from quasi-experiment in China's SO2 trading emissions system," Energy, Elsevier, vol. 278(C).
    9. Mei Lu & Michael G. Pollitt & Ke Wang & Yi-Ming Wei, 2023. "The incremental impact of China’s carbon trading pilots," Working Papers EPRG2316, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    10. Bożena Gajdzik & Włodzimierz Sroka & Jolita Vveinhardt, 2021. "Energy Intensity of Steel Manufactured Utilising EAF Technology as a Function of Investments Made: The Case of the Steel Industry in Poland," Energies, MDPI, vol. 14(16), pages 1-17, August.
    11. 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.
    12. Wu, Ya & Su, JingRong & Li, Ke & Sun, Chuanwang, 2019. "Comparative study on power efficiency of China's provincial steel industry and its influencing factors," Energy, Elsevier, vol. 175(C), pages 1009-1020.
    13. Tang, Le & Jefferson, Gary, 2024. "A DSGE model of energy efficiency with vintage capital in Chinese industry," Economic Modelling, Elsevier, vol. 132(C).
    14. 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.
    15. Isabelle Cadoret & Fabio Padovano, 2018. "Derterminants and consequences of the stringency of environmental policies: an empirical test," Economics Working Paper from Condorcet Center for political Economy at CREM-CNRS 2018-04-ccr, Condorcet Center for political Economy.
    16. Wang, En-Ze & Lee, Chien-Chiang & Li, Yaya, 2022. "Assessing the impact of industrial robots on manufacturing energy intensity in 38 countries," Energy Economics, Elsevier, vol. 105(C).
    17. Shuxing Chen & Xiangyang Du & Junbing Huang & Cheng Huang, 2019. "The Impact of Foreign and Indigenous Innovations on the Energy Intensity of China’s Industries," Sustainability, MDPI, vol. 11(4), pages 1-18, February.
    18. Haider, Salman & Danish, Mohd Shadab & Sharma, Ruchi, 2019. "Assessing energy efficiency of Indian paper industry and influencing factors: A slack-based firm-level analysis," Energy Economics, Elsevier, vol. 81(C), pages 454-464.
    19. Si, Shuyang & Lyu, Mingjie & Lin Lawell, C.-Y. Cynthia & Chen, Song, 2018. "The effects of energy-related policies on energy consumption in China," Energy Economics, Elsevier, vol. 76(C), pages 202-227.
    20. Zhang, Xiaoyu & Zhou, Jinlan & Du, Xiaodong, 2022. "Impact of oil price uncertainty shocks on China’s macro-economy," Resources Policy, Elsevier, vol. 79(C).

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    More about this item

    Keywords

    China; Energy intensity; Industrial sector;
    All these keywords.

    JEL classification:

    • F0 - International Economics - - General

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