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Impact of Economic Structural Changes on Energy Macro-efficiency

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Energy Economics: Energy Efficiency in China

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Abstract

China is in the process of industrialization and the changes in its industrial structure are relatively rapid. The state of the industrial structure restricts the final demand structure and national income distribution structure. In contrast, the direction and speed of changes in the industrial structure are led by the final demand structure and national income distribution structure. In this chapter, we will use quantitative analysis (methods such as national economic accounting and statistical methods) to analyze the influence of China’s industrial structure, end-use structure, and national economic distribution structure on its energy macro-efficiency in a step-by-step fashion from the endogenous to exogenous factors. Further, we will analyze the direct and indirect effects of urbanization on residential energy consumption. We mainly discuss the economic structure and energy macro-efficiency. To be consistent with the current policies in China and some of the popular literature, we adopt energy intensity (energy consumption per unit of GDP and energy consumption per unit of added value) to directly describe these issues.

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Notes

  1. 1.

    Coal equivalent calculation at constant prices, Base year = 2005.

  2. 2.

    If you remove the impact of the “great leap forward,” from 1953 to 1977, China’s total energy consumption per unit of GDP was steadily rising. The planned economic system is not enough to fully explain the reasoning behind this outcome. Since the first five-year plan and even before that time, China has been engaged in the process of industrialization and its industrial system had begun to gradually form, even though there were many structural problems. According to the experience of the developed countries, the energy consumption per unit of GDP often rises in the early stage of industrialization (the rising amplitude or speed is worth further research).

  3. 3.

    In much of the literature, it is defined as the “efficiency effect” or “technical effect”. The following chapters of this book will include further discussions of this matter.

  4. 4.

    To find the difference, we use the “sector intensity,” which actually means the energy consumption per added value for that sector.

  5. 5.

    Strictly speaking, the cost price index is the price index of gross output, which is different from the price index of added value. However, considering the accounting method for added value in China, we employ the cost price index.

  6. 6.

    Because input–output analysis belongs to the flow-analysis methods, energy exports here does not include the energy consumption caused by fixed capital. If this consumption is added, then the energy exports would be larger.

  7. 7.

    Data source: The official website of the Ministry of Finance.

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Authors and Affiliations

  1. School of Management and Economics, Center for Energy and Environmental Policy Research, Beijing Institute of Technology (BIT), Beijing, China

    Yi-Ming Wei & Hua Liao

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  1. Yi-Ming Wei
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  2. Hua Liao
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Correspondence to Yi-Ming Wei .

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Wei, YM., Liao, H. (2016). Impact of Economic Structural Changes on Energy Macro-efficiency. In: Energy Economics: Energy Efficiency in China. Springer, Cham. https://doi.org/10.1007/978-3-319-44631-8_3

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  • DOI: https://doi.org/10.1007/978-3-319-44631-8_3

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  • Publisher Name: Springer, Cham

  • Print ISBN: 978-3-319-44629-5

  • Online ISBN: 978-3-319-44631-8

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