Energy Efficiency of China’s Iron and Steel Industry from the Perspective of Technology Heterogeneity

Xiaoling Wang, Feng He, Linfeng Zhang and Lili Chen
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Xiaoling Wang: School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China
Feng He: School of Economics and Management, University of Science and Technology Beijing, Beijing 100083, China
Linfeng Zhang: Department of development and science and technology, China Iron and Steel Association, Beijing 100711, China
Lili Chen: School of Economics and Management, Tsinghua University, Beijing 100084; China

Energies, 2018, vol. 11, issue 5, 1-11

Abstract: This paper investigates energy efficiency with the presence of undeniable outputs, efficiency gaps across regions, and determinants of inefficiency of the Chinese Iron and Steel (IS) industry by combining hybrid measure technology and the meta-frontier approach. Empirical results obtained from analyses based on panel data spanning 2010–2015 reveal the necessity of green transition of the IS industry. Simultaneously addressing power supply, environmental impacts, and value creation of energy is still one of the most formidable challenges facing the IS industry nowadays. Moreover, distinct spatial heterogeneity in technology exists extensively across the regions. Energy efficiency of the IS industry in the eastern region performed the best, whereas the central and western areas fell behind due to the intension of managerial failure and expansion of the technology gap. Based on the findings, general and regional-specific policy implications and suggestions are posited.

Keywords: China’s iron and steel industry; energy efficiency; undesirable hybrid measure; technology heterogeneity (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (11)

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