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Can Industrial Restructuring Significantly Reduce Energy Consumption? Evidence from China

Boqiang Lin () and Guanglu Zhang

Emerging Markets Finance and Trade, 2018, vol. 54, issue 5, 1082-1095

Abstract: This article uses China’s input–output (I-O) tables in 2002, 2007, and 2012 to estimate the real energy consumption of each sector after the I-O adjustment. The relationship between the sectors is further analyzed using the utility analysis method based on ecological network analysis. The empirical results show that although the traditional energy-intensive industries are the major energy-consuming sectors from a direct energy consumption perspective, large energy consumption by energy-intensive industries is transferred to downstream industries through intermediate products after the I-O adjustment. Specifically, the building industry and service sector are the sectors with the highest real energy consumption. With the upgrading and optimization of the industrial structure, the proportion of energy-intensive sectors in China is declining. However, the development of the service sector and infrastructure construction still requires large intermediate inputs. Thus, industrial restructuring cannot significantly reduce China’s total energy consumption.

Date: 2018
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DOI: 10.1080/1540496X.2018.1425836

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