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Can China's Energy Intensity Constraint Policy Promote Total Factor Energy Efficiency? Evidence from the Industrial Sector

Shuai Shao, Zhenbing Yang, Lili Yang, and Shuang Ma

Year: 2019
Volume: Volume 40
Number: Number 4
DOI: 10.5547/01956574.40.4.ssha
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Abstract:
As part of the country's efforts to achieve green development, China implemented a mandatory energy intensity reduction target in its 11th "Five-Year Plan (FYP)" in 2006, and then began to roll out a series of relevant measures. However, existing studies have paid little attention to the actual effects of China's energy intensity constraint policy (EICP). In this paper, using panel data from China's 36 industrial sub-sectors covering the years from 2001 to 2014, we adopt the difference-in-differences (DID) method to investigate for the first time the EICP's (marginal) effect on total factor energy efficiency growth (TFEEG). We also estimate the superposition effect caused by the introduction of a carbon intensity constraint policy (CICP) on TFEEG, through the difference-in-difference-in-differences (DDD) strategy. Finally, using counterfactual, re-grouping and quasi-DID analyses, we conduct a series of robustness tests of the empirical results. The results show that the TFEEG in China's industrial sector experienced an overall declining trend between 2001 and 2014. The implementation of the EICP has had a significantly negative effect on the improvement of the TFEEG of sub-sectors with higher levels of energy intensity. After the implementation of the EICP, the TFEEG rate of these sub-sectors declined by 4.31%, compared to the rate of the other sub-sectors. The results of a series of robustness tests indicate that such a negative effect is credible. The marginal effect in the first two years after the implementation of the EICP was significantly negative, while the superposition effect of the introduction of a CICP on industrial TFEEG remained negative. Thus, the Chinese government should reinforce the implementation of energy-saving policies by introducing additional market-oriented auxiliary policies to propel the green development transformation of China's industrial sector.



Impact of the Feed-in Tariff Policy on Renewable Innovation: Evidence from Wind Power Industry and Photovoltaic Power Industry in China

Boqiang Lin and Yufang Chen

Year: 2023
Volume: Volume 44
Number: Number 2
DOI: 10.5547/01956574.44.2.blin
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Abstract:
Technological innovation is the key to develop wind power and photovoltaic power industries. The feed-in tariff (FIT) policy, as a demand-pull policy, is important to support renewable energy technological innovation. Using the "difference-in-differences" method, this paper investigates the impact of FIT policy of wind power and the impact of the FIT policy designed according to differences in the distribution of resources on wind power technological innovation. The findings show that the FIT policy can drive patenting in wind power technologies during the implementation period, but may play a relatively weak promoting role in technological innovation in the latter term, and the FIT policy designed according to differences in the distribution of resources also stimulates more patent counts. Finally, based on the fixed effect negative binomial regression model, this paper finds that the higher feed-in tariffs can increase the patent counts in photovoltaic power technologies.



High-Speed Rail and Energy Productivity: Evidence from China

Yantuan Yu and Shuai Shao

Year: 2024
Volume: Volume 45
Number: Number 1
DOI: 10.5547/01956574.45.1.yayu
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Abstract:
Using the difference-in-differences method combined with the propensity score matching, this study identifies the causal relationship between high-speed rail (HSR) and energy productivity in China. Furthermore, we investigate the mechanism through which HSR affects energy productivity, as well as the heterogeneity of the impact across quantiles and distances. The results show that HSR connection contributes to the improvement of energy productivity. This finding is consolidated after a potential endogeneity problem is addressed using the instrumental variable method and a variety of potential confounders are controlled through a series of robustness checks. On average, the marginal impact of HSR on energy productivity is approximately 9%. Moreover, HSR connection cannot be completely substituted by traditional railway and aviation in improving energy productivity. The heterogeneity analysis suggests that the positive energy productivity effect of HSR gradually decreases with an increasing distance to the nearest HSR station. In addition, HSR network accessibility has a significant positive effect on energy productivity, while technological innovation mediates the relationship between HSR development and energy productivity. We propose that to achieve the long-term improvement of energy productivity, policymakers should comprehensively consider both transit-oriented development and ecology-oriented development modes.



The Effects of The Multi-Target Policy on Green Productivity: Evidence from China’s Fossil Fuel Power Plants

Yu Zhao, Yunning Ma, Yongrok Choi, and Ning Zhang

Year: 2024
Volume: Volume 45
Number: Number 3
DOI: 10.5547/01956574.45.3.yzha
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Abstract:
We propose the non-radial meta-frontier global Luenberger productivity index, which addresses the issues of technology heterogeneity, slack variable, and linear programming infeasibility, and decompose it based on the technology perspective and factor perspective. With the dataset of China's power plants from 2005 to 2015, we identify the effects of the multi-targets, including energy-saving targets and SO2 reduction targets, in the 12th Five-Year Plan on green productivity encompassing all channels of effects. A 1% increase in the average energy-saving target cumulatively increases green productivity by 0.50%, while a 1% increase in the average SO2 reduction target cumulatively decreases that by 0.03%. In all channels, the technology leadership effect and generation efficiency exhibit sensitivity. Differential effects of the multi-targets on state-owned versus non-state-owned plants imply significant differences in observed production technology.





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