IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v156y2021ics0301421521003438.html
   My bibliography  Save this article

Structural evolution of energy embodied in final demand as economic growth: Empirical evidence from 25 countries

Author

Listed:
  • Zhang, Yi
  • Fan, Ying
  • Xia, Yan

Abstract

Most countries of the world have put forward the goal of striving for carbon neutrality. The goal is hard to achieve by only relying on supply side solutions for the world. Most countries should pay more attention to the potential of energy conservation and emission reduction in the field of final demand. We construct an empirical analytic framework to investigate energy demand characteristics as economic growth from the perspective of final demand, and the results show a U-shaped curve relationship between the ratio of energy embodied in consumption to energy embodied in investment (REECEEI) and real gross domestic product per capita. The REECEEIs of major developing and developed countries are very different. Compare to the average baseline curve scenario, there is a notable conservation potential of energy embodied in final demand for major developing and developed countries. In climate negotiation, the demand for energy embodied in investment of developing countries should be guaranteed because it is the foundation of their economic development. To conserve energy and reduce emissions in the field of final demand, developing countries should focus on the field of energy embodied in investment, while developed countries should focus on the field of energy embodied in consumption.

Suggested Citation

  • Zhang, Yi & Fan, Ying & Xia, Yan, 2021. "Structural evolution of energy embodied in final demand as economic growth: Empirical evidence from 25 countries," Energy Policy, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:enepol:v:156:y:2021:i:c:s0301421521003438
    DOI: 10.1016/j.enpol.2021.112473
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421521003438
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2021.112473?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Oded Galor & Omer Moav, 2004. "From Physical to Human Capital Accumulation: Inequality and the Process of Development," The Review of Economic Studies, Review of Economic Studies Ltd, vol. 71(4), pages 1001-1026.
    2. Liu, Hong-Tao & Guo, Ju-E & Qian, Dong & Xi, You-Min, 2009. "Comprehensive evaluation of household indirect energy consumption and impacts of alternative energy policies in China by input-output analysis," Energy Policy, Elsevier, vol. 37(8), pages 3194-3204, August.
    3. Lea Cassar, 2007. "Convergence, Inequality and Education in the Galor and Zeira Model," Rivista di Politica Economica, SIPI Spa, vol. 97(6), pages 229-254, November-.
    4. Chenery, Hollis & Taylor, Lance, 1968. "Development Patterns: Among Countries And Over Time," Center for International Affairs (CIA) Archive 294545, Harvard University, Center for International Affairs.
    5. Heling Shi & Xiaokai Yang, 2006. "A New Theory Of Industrialization," World Scientific Book Chapters, in: Christis Tombazos & Xiaokai Yang (ed.), Inframarginal Contributions To Development Economics, chapter 17, pages 437-460, World Scientific Publishing Co. Pte. Ltd..
    6. Cui, Lian-Biao & Peng, Pan & Zhu, Lei, 2015. "Embodied energy, export policy adjustment and China's sustainable development: A multi-regional input-output analysis," Energy, Elsevier, vol. 82(C), pages 457-467.
    7. Li, Feng & Xiao, Jing Jian, 2020. "Losing the future: Household wealth from urban housing demolition and children's human capital in China," China Economic Review, Elsevier, vol. 63(C).
    8. W. W. Rostow, 1959. "The Stages Of Economic Growth," Economic History Review, Economic History Society, vol. 12(1), pages 1-16, August.
    9. Jeff Borland & Xiaokai Yang, 2006. "Specialization, Product Development, Evolution Of The Institution Of The Firm, And Economic Growth," World Scientific Book Chapters, in: Christis Tombazos & Xiaokai Yang (ed.), Inframarginal Contributions To Development Economics, chapter 12, pages 291-325, World Scientific Publishing Co. Pte. Ltd..
    10. Wiedmann, Thomas, 2009. "A review of recent multi-region input-output models used for consumption-based emission and resource accounting," Ecological Economics, Elsevier, vol. 69(2), pages 211-222, December.
    11. Liang, Qiao-Mei & Fan, Ying & Wei, Yi-Ming, 2007. "Multi-regional input-output model for regional energy requirements and CO2 emissions in China," Energy Policy, Elsevier, vol. 35(3), pages 1685-1700, March.
    12. Jiang, Lei & He, Shixiong & Tian, Xi & Zhang, Bo & Zhou, Haifeng, 2020. "Energy use embodied in international trade of 39 countries: Spatial transfer patterns and driving factors," Energy, Elsevier, vol. 195(C).
    13. K. J. Arrow, 1971. "The Economic Implications of Learning by Doing," Palgrave Macmillan Books, in: F. H. Hahn (ed.), Readings in the Theory of Growth, chapter 11, pages 131-149, Palgrave Macmillan.
    14. Wiedmann, Thomas & Lenzen, Manfred & Turner, Karen & Barrett, John, 2007. "Examining the global environmental impact of regional consumption activities -- Part 2: Review of input-output models for the assessment of environmental impacts embodied in trade," Ecological Economics, Elsevier, vol. 61(1), pages 15-26, February.
    15. Geert Reuten, 1998. "The Status of Marx’s Reproduction Schemes: Conventional or Dialectical Logic?," Palgrave Macmillan Books, in: Christopher J. Arthur & Geert Reuten (ed.), The Circulation of Capital, chapter 8, pages 187-229, Palgrave Macmillan.
    16. Chen, Z.M. & Chen, G.Q., 2011. "An overview of energy consumption of the globalized world economy," Energy Policy, Elsevier, vol. 39(10), pages 5920-5928, October.
    17. Unknown, 2016. "Energy for Sustainable Development," Conference Proceedings 253270, Guru Arjan Dev Institute of Development Studies (IDSAsr).
    18. Chung, Whan-Sam & Tohno, Susumu & Shim, Sang Yul, 2009. "An estimation of energy and GHG emission intensity caused by energy consumption in Korea: An energy IO approach," Applied Energy, Elsevier, vol. 86(10), pages 1902-1914, October.
    19. Chen, B. & Li, J.S. & Wu, X.F. & Han, M.Y. & Zeng, L. & Li, Z. & Chen, G.Q., 2018. "Global energy flows embodied in international trade: A combination of environmentally extended input–output analysis and complex network analysis," Applied Energy, Elsevier, vol. 210(C), pages 98-107.
    20. Lambert, Jessica G. & Hall, Charles A.S. & Balogh, Stephen & Gupta, Ajay & Arnold, Michelle, 2014. "Energy, EROI and quality of life," Energy Policy, Elsevier, vol. 64(C), pages 153-167.
    21. Su, Bin & Ang, B.W., 2013. "Input–output analysis of CO2 emissions embodied in trade: Competitive versus non-competitive imports," Energy Policy, Elsevier, vol. 56(C), pages 83-87.
    22. Li, Feng & Xiao, Jing Jian & Cai, Feiying, 2019. "Wealth, labor supply and life satisfaction: The case of urban housing demolition in China," Economics Letters, Elsevier, vol. 183(C), pages 1-1.
    23. Im, Kyung So & Pesaran, M. Hashem & Shin, Yongcheol, 2003. "Testing for unit roots in heterogeneous panels," Journal of Econometrics, Elsevier, vol. 115(1), pages 53-74, July.
    24. Wu, X.F. & Chen, G.Q., 2017. "Global primary energy use associated with production, consumption and international trade," Energy Policy, Elsevier, vol. 111(C), pages 85-94.
    25. Sun, Chuanwang & Ma, Tiemeng & Xu, Meilian, 2018. "Exploring the prospects of cooperation in the manufacturing industries between India and China: A perspective of embodied energy in India-China trade," Energy Policy, Elsevier, vol. 113(C), pages 643-650.
    26. Yi Zhang & Yan Xia & Ying Fan, 2013. "How CO 2 emissions structure evolves with the process of industrialisation," International Journal of Global Environmental Issues, Inderscience Enterprises Ltd, vol. 13(1), pages 43-63.
    27. Levin, Andrew & Lin, Chien-Fu & James Chu, Chia-Shang, 2002. "Unit root tests in panel data: asymptotic and finite-sample properties," Journal of Econometrics, Elsevier, vol. 108(1), pages 1-24, May.
    28. Chen, G.Q. & Zhang, Bo, 2010. "Greenhouse gas emissions in China 2007: Inventory and input-output analysis," Energy Policy, Elsevier, vol. 38(10), pages 6180-6193, October.
    29. Leontief, Wassily, 1970. "Environmental Repercussions and the Economic Structure: An Input-Output Approach," The Review of Economics and Statistics, MIT Press, vol. 52(3), pages 262-271, August.
    30. Munksgaard, Jesper & Pedersen, Klaus Alsted, 2001. "CO2 accounts for open economies: producer or consumer responsibility?," Energy Policy, Elsevier, vol. 29(4), pages 327-334, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Małgorzata Sztorc, 2022. "The Implementation of the European Green Deal Strategy as a Challenge for Energy Management in the Face of the COVID-19 Pandemic," Energies, MDPI, vol. 15(7), pages 1-21, April.
    2. Anatolyy Dzyuba & Irina Solovyeva & Aleksandr Semikolenov, 2023. "Raising the Resilience of Industrial Manufacturers through Implementing Natural Gas-Fired Distributed Energy Resource Systems with Demand Response," Sustainability, MDPI, vol. 15(10), pages 1-24, May.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Zhang, Bo & Chen, Z.M. & Xia, X.H. & Xu, X.Y. & Chen, Y.B., 2013. "The impact of domestic trade on China's regional energy uses: A multi-regional input–output modeling," Energy Policy, Elsevier, vol. 63(C), pages 1169-1181.
    2. Jinghan Chen & Wen Zhou & Hongtao Yang, 2019. "Is Embodied Energy a Better Starting Point for Solving Energy Security Issues?—Based on an Overview of Embodied Energy-Related Research," Sustainability, MDPI, vol. 11(16), pages 1-22, August.
    3. Zhang, Bo & Qu, Xue & Meng, Jing & Sun, Xudong, 2017. "Identifying primary energy requirements in structural path analysis: A case study of China 2012," Applied Energy, Elsevier, vol. 191(C), pages 425-435.
    4. Jiang, Lei & He, Shixiong & Tian, Xi & Zhang, Bo & Zhou, Haifeng, 2020. "Energy use embodied in international trade of 39 countries: Spatial transfer patterns and driving factors," Energy, Elsevier, vol. 195(C).
    5. Zhang, Zhonghua & Zhao, Yuhuan & Su, Bin & Zhang, Yongfeng & Wang, Song & Liu, Ya & Li, Hao, 2017. "Embodied carbon in China’s foreign trade: An online SCI-E and SSCI based literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 68(P1), pages 492-510.
    6. Cui, Lian-Biao & Peng, Pan & Zhu, Lei, 2015. "Embodied energy, export policy adjustment and China's sustainable development: A multi-regional input-output analysis," Energy, Elsevier, vol. 82(C), pages 457-467.
    7. Chen, G.Q. & Chen, Z.M., 2011. "Greenhouse gas emissions and natural resources use by the world economy: Ecological input–output modeling," Ecological Modelling, Elsevier, vol. 222(14), pages 2362-2376.
    8. Chen, G.Q. & Zhang, Bo, 2010. "Greenhouse gas emissions in China 2007: Inventory and input-output analysis," Energy Policy, Elsevier, vol. 38(10), pages 6180-6193, October.
    9. Usubiaga-Liaño, Arkaitz & Arto, Iñaki & Acosta-Fernández, José, 2021. "Double accounting in energy footprint and related assessments: How common is it and what are the consequences?," Energy, Elsevier, vol. 222(C).
    10. Chen, Z.M. & Chen, G.Q., 2011. "Embodied carbon dioxide emission at supra-national scale: A coalition analysis for G7, BRIC, and the rest of the world," Energy Policy, Elsevier, vol. 39(5), pages 2899-2909, May.
    11. Hong, Jingke & Shen, Qiping & Xue, Fan, 2016. "A multi-regional structural path analysis of the energy supply chain in China's construction industry," Energy Policy, Elsevier, vol. 92(C), pages 56-68.
    12. Tarancon, Miguel Angel & Del Río, Pablo, 2012. "Assessing energy-related CO2 emissions with sensitivity analysis and input-output techniques," Energy, Elsevier, vol. 37(1), pages 161-170.
    13. Zhang, Bo & Qiao, H. & Chen, B., 2015. "Embodied energy uses by China’s four municipalities: A study based on multi-regional input–output model," Ecological Modelling, Elsevier, vol. 318(C), pages 138-149.
    14. Chen, Zhan-Ming & Liu, Yu & Qin, Ping & Zhang, Bo & Lester, Leo & Chen, Guanghua & Guo, Yumei & Zheng, Xinye, 2015. "Environmental externality of coal use in China: Welfare effect and tax regulation," Applied Energy, Elsevier, vol. 156(C), pages 16-31.
    15. Ding, Tao & Ning, Yadong & Zhang, Yan, 2018. "The contribution of China’s bilateral trade to global carbon emissions in the context of globalization," Structural Change and Economic Dynamics, Elsevier, vol. 46(C), pages 78-88.
    16. Su, Bin & Ang, B.W. & Low, Melissa, 2013. "Input–output analysis of CO2 emissions embodied in trade and the driving forces: Processing and normal exports," Ecological Economics, Elsevier, vol. 88(C), pages 119-125.
    17. Hong, Jingke & Shen, Geoffrey Qiping & Guo, Shan & Xue, Fan & Zheng, Wei, 2016. "Energy use embodied in China׳s construction industry: A multi-regional input–output analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 1303-1312.
    18. Tang, Miaohan & Hong, Jingke & Liu, Guiwen & Shen, Geoffrey Qiping, 2019. "Exploring energy flows embodied in China's economy from the regional and sectoral perspectives via combination of multi-regional input–output analysis and a complex network approach," Energy, Elsevier, vol. 170(C), pages 1191-1201.
    19. Lixiao Zhang & Qiuhong Hu & Fan Zhang, 2014. "Input-Output Modeling for Urban Energy Consumption in Beijing: Dynamics and Comparison," PLOS ONE, Public Library of Science, vol. 9(3), pages 1-11, March.
    20. Li, Meng & Gao, Yuning & Meng, Bo & Yang, Zhusong, 2021. "Managing the mitigation: Analysis of the effectiveness of target-based policies on China's provincial carbon emission and transfer," Energy Policy, Elsevier, vol. 151(C).

    More about this item

    Keywords

    Energy; Economic growth; Climate change; Carbon neutrality;
    All these keywords.

    JEL classification:

    • B22 - Schools of Economic Thought and Methodology - - History of Economic Thought since 1925 - - - Macroeconomics
    • C33 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Models with Panel Data; Spatio-temporal Models
    • E11 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Marxian; Sraffian; Kaleckian
    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:156:y:2021:i:c:s0301421521003438. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.