Research On China’s Industrial Energy Efficiency Under The Environmental System Constraints

The past 20 years, energy Problem has become the issue and hot spots of China’s economic development. China’s current energy situation is not optimistic, which may be mainly reflected in three aspects:increasing consumption demand, resource constraints growing obvious, Energy efficiency being relatively lower, energy-saving and consumption-reducution becoming very difficult, the contradiction of energy consumption structure and environmental pollution becoming worse. Improving energy efficiency helps to alleviate these problems.This dissertation is an empirical analysis driven by Chinese industrial energy efficiency, combined with the productivity theory, the economic growth theory, the energy economic theory and environmental economic theory, the energy efficiency model under total-factor productivity framework is constructed by the non-parametric Data Envelopment Analysis (DEA),including the pollutants, which is different from the existing research. This indicator can be used to evaluate the relative utilization efficiency score during the production process for different Decision Making Units(DMU).Then the econometric model which incorporates explanation variables can be employed to measure each one’s contribution to the diversity of the energy efficiency.Chapter 1 aims to answer "Why study China’s industrial energy efficiency and how to measure energy efficiency".This paper, from Chinese current energy supply, demand, efficiency, and environmental pressure, has expounded that China’s industrial sustainable development is inseparable from the improvement of energy efficiency."What is energy efficiency, how to measure energy efficiency, as well as factors affecting energy efficiency?"-In Chapter 2, the energy-related theories and existing energy efficiency literatures were sorted and summarized to clarify the context of energy efficiency. Then, Chapter 3 is aim to introduce the some models as the single-factor model commonly used, and the energy efficiency model under total-factor productivity framework. Is China’s energy efficiency high or low? And why? That is the main purpose of Chapter 4.By using the panel data cross 96 countries from 1980 to 2007, each country’s total-factor energy technical efficiency score is measured and the international comparison indicated that China lags behind most of countries. One main reason is the scale inefficiency in the national wide, which result from the regional competition and market segmentation under the arrangement of decentralized fiscal institution, as well as the excessive capital deepening during the process of industrialization.China is in the process of industrialization, industrial energy consumption and pollution emissions account for more than 70% of the total level. Therefore, the study of energy and environmental issues will have to research on industrial energy consumption and pollution emissions. Chapter 5, by using China’s 36 industrial sector from 1999 to 2007 panel data, estimates each industry’s total-factor energy efficiency, which shows that Chinese industrial sections’ energy efficiency is generally low and serious polarization, and the differences of industrial property structure, scale, capital per labor, the energy structure are the driving force. Further, in Chapter 6, we use china’s 28 provincial-level panel data from 1999 to 2008 to measure the industrial energy efficiency, the result shows there is great differences of regional industrial energy efficiency, and differences of industrial economic structure (scale, property and capital per labor), living standards, technical innovation, energy structure, foreign direct investment and other factors may well explain the regional differences in energy efficiency.Energy shortage and environmental pollution has become the two main difficulties in the process of china’s industrialization, how to achieve sustainable development? Chapter 7 analyzes qualitatively the coordination among the industrial sustainable development, energy and environmental protection.Furthermore, the chapter 8 studies the feasibility of China’s energy-saving and emission reduction target and possible output loss. Based on the panel data of 37 industrial sections from 2005 to 2007, the energy conservation potential and the emission reduction potential for each section are estimated and aggregate to the national wide level; the results showed that the majority of industrial sections’ energy-saving and emission reduction potential are very great. In theory, the mandatory target in the "Eleventh Five-Year Planning" can be achieved.