Dynamic Evolution Mechanism of China Total Factor Energy Efficiency: Cointegration Analysis Using the Panel Data From 1991 to 2009

Abstract

In this paper, the panel data model is built to research the dynamic evolution mechanism of the total factor energy efficiency (TFEE). Then by using the panel data of China from 1991 to 2009, this paper estimates China's TFEE based on the input to the guide DEA model, and empirically researches on the dynamic evolution mechanism of the China's TFEE by comparatively analyzing the contribution rate of every influencing factor to the growth rate of TFEE. The empirical research results show that the TFEE level in China is lower on the whole; only in 2009 the TFEE values achieved its efficiency frontier; there is a panel cointegration in the long run relationship between TFEE and influencing factors. It is clear that both the industrial structure and the structure of energy consumption have negative influence on TFEE, while education level, technical advancement and government influence have positive influence on TFEE. The education level has the greatest contribution to the growth of TFEE. The TFEE will be pushed forward by these influencing factors. The research conclusions of this paper confirm the idea that the increase of energy efficiency depends on the improvement of revelant influencing factors.