The impact of coal and non‐coal consumption on China's energy performance improvement

Abstract

China is the world's largest energy consumer, and coal accounts for a higher proportion of the country's total energy consumption, yet during its 12th five‐year plan (2011–2015), the coal share among total energy consumption significantly decreased. Previous studies exploring energy performance typically used energy consumption as an input, but this lacks the analytical capacity for the structure of energy consumption. Thus, this study splits energy input into two different inputs, coal consumption and non‐coal energy consumption, and based on their differences with other variables, uses the hybrid dynamic data envelopment analysis model to assess the energy performance of China's provincial industrial sector during the period 2011 to 2015. We then compare coal consumption's and non‐coal consumption's rooms for improvement and conclude that provinces in eastern and central China should reduce the amount of coal consumption, thereby improving energy performance. Conversely, provinces in the western region should target a balance between energy utilization efficiency and coal consumption.

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