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Energy rebound effect in China's Industry: An aggregate and disaggregate analysis

Yue-Jun Zhang (), Hua-Rong Peng and Bin Su

Energy Economics, 2017, vol. 61, issue C, 199-208

Abstract: Considering the crucial role of industrial sectors in energy conservation, this paper investigates the impact of output growth on energy consumption in China's industrial sectors with an index decomposition model and the energy rebound effect in the industrial sectors with a panel data model using the annual data during 1994–2012. The empirical results indicate that: first, industrial output growth is proved to be the major factor in promoting industrial energy consumption, while energy intensity reduction and structure shifts across industrial sub-sectors play the dominant roles in slowing down industrial energy consumption. Second, there does exist energy rebound effect in China's aggregate Industry, which ranges from 20% to 76% during 1995–2012 (or 39% on average). In particular, the energy rebound effect in Manufacturing is relatively smaller during the sample period (i.e., 28% on average). Finally, the energy rebound effect in both China's aggregate Industry and Manufacturing exhibit an overall decreasing trend over time.

Keywords: Energy rebound effect; Industry; Manufacturing; Index decomposition model; Resource-specific technological change; Panel data model (search for similar items in EconPapers)
JEL-codes: O13 P28 Q43 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (44)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:61:y:2017:i:c:p:199-208

DOI: 10.1016/j.eneco.2016.11.011

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Energy Economics is currently edited by R. S. J. Tol, Beng Ang, Lance Bachmeier, Perry Sadorsky, Ugur Soytas and J. P. Weyant

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