The Influence of Energy Price Distortion on Region Energy Efficiency in China’s Energy-Intensive Industries from the Perspectives of Urban Heterogeneity

This study examines how the low-carbon pilot city policy (LCPCP) affects energy efficiency from the angles of green technology innovation and upgrading industrial structure by using panel data collected from Chinese cities between 2007 and 2019. The research results include: (1) Based on the time-varying difference-in-differences method, LCPCP has significantly improved energy efficiency, while such results remain significant after replacing the method of measuring the dependent variable and testing with the placebo test and the method of PSM-DID. (2) The heterogeneity analysis shows that compared to resource-based cities (RBC), LCPCP has a greater impact in non-resource-based cities (NRBC). Compared to the Central regions (CR) and Western regions (WR), LCPCP has a stronger impact in the Eastern region (ER). (3) A mechanism inspection shows that LCPCP can promote energy efficiency through both upgrading industrial structure and green technology innovation. LCPCP is of great importance for improving energy efficiency.

“…Second, we divide the LPG, NG and CE of each city by the coefficient CEI to calculate the total EC of the city. The formulas for these calculations are given in Equations ( 4) and (5).…”

Section: Variable Selectionmentioning

confidence: 99%

“…China is a country with high energy usage, primarily from coal. Longterm energy efficiency declines have been caused by the extensive economic development paradigm [5]. The efficiency of energy usage must be raised if China is to meet its goals for long-term, high-quality economic development.…”

Section: Introductionmentioning

confidence: 99%

Can Low-Carbon Pilot City Policies Improve Energy Efficiency? Evidence from China

Liu

Wang

et al. 2023

“…Stochastic frontier analysis (SFA) has been extensively employed to appraise energy efficiency across diverse domains. Notably, several studies have examined energy efficiency in diverse sectors, such as the manufacturing industry in the United States [11][12][13], industries with high energy consumption in China [14], the steel and paper industries in India [15,16], the manufacturing industry in Sweden [17] and Kenya [18], the industrial sectors in Japan [19], and the major industries in Vietnam [20]. Additionally, some studies estimated regional energy efficiency in China [21][22][23][24][25][26], Japan [27,28], the United States [29], Portugal [30], and Cameroon [31].…”

Section: Literature Reviewmentioning

confidence: 99%

Estimating Energy Efficiency and Energy Saving Potential in the Republic of Korea’s Offshore Fisheries

Jeon,

Nam

2023

The Republic of Korea’s government has established a carbon negativity policy to mitigate climate change in the fisheries sector. To achieve this objective, the government proposed enhancing energy efficiency in vessel fisheries, known for high carbon emissions. However, it was difficult to find research that investigated the energy consumption status of vessel fisheries. Thus, this study aims to calculate the offshore fisheries’ energy efficiency (EE) and to estimate the energy saving potential (ESP) needed in order to achieve efficient energy consumption. For this purpose, annual fisheries management surveys and data on the tax-free petroleum supply are employed. This study measures the EE and the ESP of offshore fisheries by year and fishing gear by employing the stochastic frontier analysis (SFA), which considers exogenous determinants of energy inefficiency. The analysis results show a decline in the EE over time and an increasing trend in the ESP. Notably, the trawl and fleet fisheries tend to have lower energy efficiency. Furthermore, the trawl and fleet fisheries were identified as having the highest ESP. Therefore, to utilize energy efficiently and reduce energy consumption in offshore fisheries, this study suggests scaling down fleet fisheries, developing energy saving fishing nets and eco-friendly fishing vessels, expanding modernization projects for fishing vessels, and revising the related acts.

“…D gas = (P g − P t3 )/P t3 (6) where D coal , D oil , and D gas indicate price distortions in coal, oil, and natural gas, respectively. P c , P o , and P g are the real prices.…”

Section: Measurement Of Energy Price Distortionsmentioning

confidence: 99%

“…Distortions in energy prices occur when the real price deviates from its equilibrium level under a perfectly competitive market, meaning that energy is not allocated optimally. The majority of existing studies use energy as an input factor to measure price distortions [4][5][6]. Since market-oriented reforms of various energy prices in China have not been synchronized, the distortions vary across different energy products.…”

Section: Introductionmentioning

confidence: 99%

How Energy Price Distortions Affect China’s Economic Growth and Carbon Emissions

Sha

2022

China’s energy market reform is characterized by “asymmetry” as a result of the transition from a planned economy to a market economy, leading to typical distortions in energy prices. Using panel data from 30 Chinese provinces during 2006–2018, this paper examines the impact of the price distortions of fossil energy sources (coal, oil, and natural gas) as well as renewable energy on China’s economic growth and carbon emissions. The results show that coal price distortion is the highest among the fossil energy sources, followed by oil and natural gas. Renewable energy price is positively distorted. Not all price distortions of energy sources significantly impede economic growth—only those of coal and renewable energy. In contrast, oil and natural gas price distortions promote economic growth. All four energy price distortions contribute significantly to the increase in carbon emissions. Further analysis reveals that regional heterogeneity exists in the impact of energy price distortions on economic growth and carbon emissions. Additionally, this study finds that technological innovation, industrial structure upgrading, the investment effect, the optimization of energy consumption structure, and environmental regulations are important transmission mechanisms of energy price distortions affecting China’s economic growth and carbon emissions. The findings of this study can help us to understand the relationship between energy price distortions and China’s economic growth and carbon emissions, and provide a reference for formulating energy price reform policies that benefit the win-win development of China’s economy and environment.