Industrial energy consumption and pollutant emissions: Combined decomposition of relative performance and absolute changes

Sicen Liu, Xiaodong Chen, Zhiyang Shen and Tomas Baležentis

Business Strategy and the Environment, 2022, vol. 31, issue 7, 3454-3469

Abstract: Combined decomposition of relative productivity growth and absolute changes in input/output variables helps to identify the driving forces of energy conservation and emission reduction. This paper proposes a framework based on the Luenberger productivity indicator (LPI) and the logarithmic mean Divisia index (LMDI) approach to analyze the energy–economy–environment nexus. The empirical case of the China's industrial sector for 2006–2014 is analyzed. Following this approach, we present a variable‐specific decomposition framework which attributes the overall productivity change and its sources to individual input/output variables. Empirically, we examine the relationships between the productivity growth and energy consumption within the LPI–LMDI framework across China's province‐level regions. The results show important spatial variation in the productivity measures. The LPI–LMDI decomposition implies that the industrial energy consumption increased with productivity growth appearing as the only mitigating factor. As regards the industrial SO2 emission, the individual productivity growth effect and the efficiency change effect remained as suppressing factors for emission abatement. These results can be used for evidence‐based decision making.

Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations:

Downloads: (external link)
https://doi.org/10.1002/bse.3094

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:bla:bstrat:v:31:y:2022:i:7:p:3454-3469

Ordering information: This journal article can be ordered from
http://onlinelibrary ... 1002/(ISSN)1099-0836

Access Statistics for this article

Business Strategy and the Environment is currently edited by Richard Welford

More articles in Business Strategy and the Environment from Wiley Blackwell
Bibliographic data for series maintained by Wiley Content Delivery ().