Unveiling the energy efficiency paradox: Industrial automation and energy rebound in China

Yating Deng, Yueqing Zou and Fengtao Guang

Energy, 2025, vol. 328, issue C

Abstract: The swift advancement of industrial automation technology has led to behavioral alterations in the micro-units (individuals and firms) and then macro-units (countries and regions), inevitably shaping the energy rebound effect. Therefore, this study explores the impact of industrial automation on the energy rebound effect, which has not been extensively studied across China's various regions. Our results identify a significant positive effect of industrial automation on the energy rebound effect in China, with a 10 % advancement in industrial automation leading to a 0.44 % rise in the energy rebound effect. Besides, expediting market processes and reducing government intervention can mitigate such energy rebound effects. Moreover, a negative impact between industrial automation and the rebound effect is found in highly automated regions, while the positive effect of industrial automation on the rebound effect is pronounced in economically underdeveloped and resource-based regions. Furthermore, non-linear analysis reveals that industrial automation exerts an inverted U-shaped impact on the energy rebound effect, with 57.70 % of samples falling on the left side. These findings offer valuable insights for navigating the challenges posed by the energy efficiency paradox via industrial automation.

Keywords: Industrial automation; Energy efficiency; Energy rebound; Inverted U-shaped impact; Non-radial directional distance function (search for similar items in EconPapers)
Date: 2025
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:328:y:2025:i:c:s0360544225021243

DOI: 10.1016/j.energy.2025.136482

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