| China's economic development has entered a moderate growth compared to the previous years of double-digit GDP growth rates, economic development has entered a new phase, economic growth is currently slowing down coupled with the emergence of new problems especially in steel, coal and cement sectors. Other industries also continued to report losses and substantial decline of profits. Faced with new situations and new problems of China's economic development, in the second half of 2015, the government proposed economic measures for supply-side reforms aimed at product quality improvement, optimization and adjustment of economic structure, factor allocation for to correct distortion, improving the efficiency of elements of production, deducing inventories, deleveraging, lowering cost, filling the short board, and thus promote economic development.The energy sectors, being a vital sector to the economy, it provides a backbone for the development of other sectors. To make supply-side reforms, energy is the first sector to be reformed, most especially the coal energy production sector requires urgent adjustment. The fact that China is a major consumer and producer of energy means that energy plays an irreplaceable role in her economy. To be able to make proper supply-side reforms in the energy sector, we must first fully identify the contribution and importance of each energy sector to the process of economic development. In this paper, the basic Input-Output Technique is used to build a model to evaluate the economic importance of the energy sector. Criteria used for evaluation are established based on the following grounds: First, The Net Value Added, standard based on initial input perspective, by measuring the value added to the national economy as a result of addition of one unit of initial input into one industry minus the net system consumption; Second; the proportion of energy consumption based on the energy consumption point of view in each industry;Third; the ratio of energy input in various industries based on the energy input point of view, to measure the ratio of energy input to the total input in each industry; Fourth, the share of each industry's output value to the total national economy, by doing htese we can understand the position of each energy industry in the whole national economyFrom China's input-output table, empirical analysis can be done to measure the economic importance of energy sector to China's economy, in order to better analyze the development of this sector this article first attempts to analyze the United States energy sector in the same way as China and finally makes a comparative analysis of the energy sector in both these countries. As for the empirical analysis of the United States, first the paper induce the America industry-industry input-output table based on the supply and use tables under industrial techinique assumption. Then in order to compare the results on the same dimension, the America industries are classified according to Chinese industry classification principles. Based on the model established, an empirical analysis was carried out using China and America input-output tables of the year 2012.The paper concludes that: In terms of net value added; coal, electricity and oil industries make up the top three out of all 17 industries, their net value added were 1.651, 1.022 and 0.977 respectively, which is higher than the average 0.664, indicating that energy industry has the highest boost to the economy.On the proportion of energy consumption, the five largest sectors in coal consumption are coking, gas and oil industry, mining, electricity generation and heating and water processing and manufacturing, metal products industry, non-metallic mineral products industry. On the power consumption, the five largest sectors are electricity, heat and water processing and manufacturing, mining, non-metallic mineral products, metal products industry, and chemicals industry. On the oil consumption, the largest five sectors are transportation and warehousing post information transmission computer software and services, and coking, gas and oil industry, chemical, mining, real estate industries. Energy is consumed more in secondary heavy industries.On the proportion of energy input, the cumulative energy consumption by coking, gas and oil industry, electric power and heat water processing and manufacturing, metal products industry products, non-metallic mineral products industry, and mining industry make up the three largest investment industries, energy is more important for these sectors. For the entire national economy; Coal, electricity and oil industries accounted for 4.84%, 2.92%, 2.54% respectively, which added up to 10.30%. It shows clearly that energy sector occupies a vital role in the economy. Thereafter, the paper compares the empirical results of China and America, we found that; in terms of net value added, not only in the energy sector, but also in most industries, China's net value added was significantly lower than that of America, which is one among the main reasons why China's economy lags behind American economy. From the ratio of energy consumption and energy input proportion for various industries, we can clearly see the gap between China and America in terms of energy efficiency.Finally, on the perspective of the economic structure between China and America, the biggest difference is the gap in initial input share between China and America, the initial input accounted for 57.64% in America economic system, while for China it was only 33.52%. As for the energy sectors, the three energy sectors cumulatively accounted for 5.08% in America economic system and 10.30% for China, this reflects that American economic structure is better than that of China and thus China faces a grim task under supply-side reforms. Finally, the paper points out and describe the innovation of the article, it also mentions problems encountered during the course of the study, and presents areas and problems that require further research. |
PDF Full Text Request