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A comparative study of energy consumption and efficiency of Japanese and Chinese manufacturing industry

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  • Zhao, Yue
  • Ke, Jing
  • Ni, Chun Chun
  • McNeil, Michael
  • Khanna, Nina Zheng
  • Zhou, Nan
  • Fridley, David
  • Li, Qiqiang

Abstract

The industrial sector consumes about 50% of the world׳s delivered energy and thus has a large impact on the world׳s energy production and consumption. Japan is one of the leading countries in industrial efficiency while China is the world׳s largest industrial energy consumer. This study analyzes the energy consumption and efficiency of the Japanese and Chinese manufacturing industry. Analysis shows that the energy intensity of both Japanese and Chinese manufacturing industry has decreased significantly. Decomposition analysis shows that the efficiency effect played an important role in reducing energy intensity; improvement of the energy efficiency of both Japanese and Chinese manufacturing industry showed a trend of exponential decay. Structural effect significantly reduced the energy intensity of the Japanese manufacturing industry while having a relatively small influence on the energy intensity of the Chinese manufacturing industry. Our analysis also shows a strong association of industrial energy efficiency improvement with energy policies, highlighting that energy efficiency policies can play an important role in the reduction of industrial energy intensity. The results of this study also underscore the important, yet very challenging, task of achieving structural change to further improve efficiency.

Suggested Citation

  • Zhao, Yue & Ke, Jing & Ni, Chun Chun & McNeil, Michael & Khanna, Nina Zheng & Zhou, Nan & Fridley, David & Li, Qiqiang, 2014. "A comparative study of energy consumption and efficiency of Japanese and Chinese manufacturing industry," Energy Policy, Elsevier, vol. 70(C), pages 45-56.
    • Handle: RePEc:eee:enepol:v:70:y:2014:i:c:p:45-56
    DOI: 10.1016/j.enpol.2014.02.034
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    23. Juan Wang & Tao Zhao & Xianshuo Xu & Xiaohu Zhang, 2016. "Exploring the changes of energy-related carbon intensity in China: an extended Divisia index decomposition," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 83(1), pages 501-521, August.
    24. Rahman, Md. Saifur & Noman, Abu Hanifa Md. & Shahari, Farihana & Aslam, Mohamed & Gee, Chan Sok & Isa, Che Ruhana & Pervin, Sajeda, 2016. "Efficient energy consumption in industrial sectors and its effect on environment: A comparative analysis between G8 and Southeast Asian emerging economies," Energy, Elsevier, vol. 97(C), pages 82-89.

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