A Study On Biased Technical Progress And Its Impact On Energy Efficiency Of Chinese Industry

With China’s rapid economic development and its industrialization, energy shortage and environmental problems are increasingly prominent, especially to industry. So that improving energy efficiency becomes the inevitable choice for China’s sustainable development,and the key to increase energy efficiency is technical progress.This paper bases on the current situation of energy use of industry during 1990-2012, on the perspective of the bias of technical progress,uses the CES function and SUR method to estimate the elasticity of substitution between energy and non-energy factor and the bias of the overall technical progress.Then, we use VAR model to explore the long-term relationship among technical progress of energy, energy price and energy efficiency. At last, we use the ECM to compare the difference of the influence to the energy efficiency between the high-energy industries and other industries, which provides a theoretical basis for the government making decisions. Conclusions as follows:(1) Over the past twenty years, high-energy industries occupy the majority of the whole capital and energy in the industry wide, while they contribute little to the added value. Besides,the energy efficiency of the high-energy industries is far less than that of other industries, while it has a significant impact to the whole industry.(2) The elasticity of substitution between energy and non-energy factor reveals to be0.167, which means there exist a complementary relationship between them. Based on this result,we found that the technical progress of non-energy factor develop much more fast then that of energy factor, so that the overall technical progress is biased to energy, that suggests we prefer to use more energy factor in the production process. Besides, by comparing the technical progress of the high-energy industries and other industries, it finds that the high-energy one appeals to be relatively backward.(3) There is a long-term co-integration relationship among technical progress of energy,energy price and energy efficiency. Comparing two types of industries, we find the impact of technical progress of energy to energy efficiency in high-energy industries is more significant than that of others, while the impact of energy price is more significant in other industries.