How To Bail Out Heating Industry From Intensive Energy Consumption And Low Efficiency In China

In recent years,heating industry develops rapidly as a part of infrastructure construction.Heating industry in China is mainly coal-fired heavy industry.Coal consumption accounts for 90%of the industry's total energy consumption during 1985-2014.As a result,heating industry's high energy consumption and emissions bring intensive pollution to the environment,especially in the main factor of atmospheric pollution in China.The disadvantages of heating industry are intensive energy consumption,high pollution,high input,but low output.As a public service,heating is closely related to the livelihood of the people,not only is closely connected with energy and environment.Therefore,it is of important practical significance to study how to bail out the heating industry out of the plight of intensive energy consumption but low efficiency,and guide the industry transit to sustainable development in the future.Embrace this core topic,this paper carries on the research from these three main points:energy,efficiency and price.The three points are close to each other.Then,this paper are built on these five questions:First,it is necessary to make sure what factors influence the energy consumption of heating industry in China and figure out its energy saving potential.Second,it has to figure out the real energy saving effect,that is,whether there is energy rebound effct.Third,analyzing the relation between input factors and outputs,especially the relationship between energy and outputs is important to energy conservation.Fourth,it is necessary to analyze the heating efficiency,especially the total-factor integrated efficiency.Fifth,heat pricing mechanism helps promote heating energy saving and efficiency improvement,how to rationalize heat tariff is the key to energy conservation and efficiency improvement.Based on this research idea,this paper carries on the sudy through a series of subjects combination,spicifically,the analysis of the factors affecting energy consumption and energy saving potential of the heating industry,the energy rebound effect,the relationship between input factors and outputs,total-factor energy efficiency and carbon dioxide efficiency and integrated efficiency,heating costs and subsidies.Most of the exist:ing literature about China's heating industry are from a technical point of view,discussions from the viewpoint of energy economic theory is still less,and,most of the existing literature just discussed a single question of heating industry in China,lacking of systematically research on heating in China.This paper is from energy economics perspective,and uses economic empirical models to analyze heating industry in China completely.Through a series of analysis of the energy consumption of heating in China,energy saving potential and actual result,the relationship between the input factors and outputs,total-factor integrated efficiency,heating costs and subsidies to explore how to help heating in China to get rid of the plight of intensive energy consumption and low energy efficiency.Research results show that during 1985-2014,a long-term cointegration relationship between the heating energy consumption and other four variables:1%GDP growth will lead to the heating energy consumption increased by 1.362%;1%rise in urban population density,central heating area and energy prices will lead to 0.294%,0.138%and 0.071%decline in heating energy consumption.By increasing urban population density,raising energy prices,expanding central heating area,in 2020,energy saving can reach 5501.58 mtce in China's heating industry,which can reduce 1.15%of China's energy demand.Cross price elasticities of energy and labor,energy and capital,are 0.3737 and 0.2199 respectively.Cross price elasticities of labor and energy,labor and capital,are 0.3793 and 0.1018 respectively.Cross price elasticities of capital and energy,capital and labor,are 0.1188 and 0.0542 respectively.The energy rebound effect exists in the heating industry in China,which is 39.96%.Input factors configuration do not realize the optimal allocation in China's heating industry,leading to input factors can not play the largest effect economic growth of outputs.Labor input accumulation effect is the largest,and energy accumulation effect is the second largest,capital accumulation effect is the smallest.All inputs have increasing returns to scale,but the increasing scale effect is weakening.Capital rely on technological progress had the greatest influence on output economic growth,followed by energy,finally the labor.Technological progress contribution to the economic growth of outputs is weak and slow.Capital investment in science and technology in China's heating industry is insufficient.Efficiency of capital in China's heating industry needs to be improved.During 1999-2014,the average total-factor energy efficiency of the thermal power industry is 0.578 in the north,and 0.661 in the south.The average total-factor of the thermal power industry CO2 emissions efficiency is 0.547 in the north,and 0.649 in the south.The average total-factor integrated efficiency of the thermal power industry is 0.572 in the north,and 0.587 in the south.Total-factor efficiency of the industry in the south is slightly higher than in the north.Technological advance is the source of adcance in the south,and technical efficiency is the source of adcance in the north.However,technological catch-up effect is not obvious in the north and the south thermal power industry.Average proportion of heating cost accounting for the thermoelectric cost is higher in the north than in the south,which is 26.3%in the north and 24.1%in the south.It is a common phenomenon in China that existing heat tariff subsidize heat users,specifically,the subsidies to residential users are much more than the non-residential users.