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The convergence of total-factor energy efficiency across Chinese cities: A distribution dynamics approach

Author

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  • Fan, Di
  • Peng, Bo
  • Wu, Jianxin
  • Zhang, ZhongXiang

Abstract

Improving energy efficiency is considered the most direct route to reducing carbon emissions on a massive scale. To examine the long-run trend of China's energy efficiency, this paper employs a distribution dynamics approach to analyze the convergence of total-factor energy efficiency (TFEE) across 286 Chinese cities between 2002 and 2014. The result suggests the existence of convergence, which comes more from the efficiency declines in the high TFEE cities rather than the efficiency gains in the low TFEE cities. Despite the fact that a few cities have performed well in energy efficiency, the majority of cities have converged to a low-efficiency point. Further analyses show that the inefficiency was attributed to inefficient energy use in small- and medium-sized cities. Our analysis provides strong scientific support for China's ongoing energy conservation and environmental protection policies.

Suggested Citation

  • Fan, Di & Peng, Bo & Wu, Jianxin & Zhang, ZhongXiang, 2024. "The convergence of total-factor energy efficiency across Chinese cities: A distribution dynamics approach," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 406-416.
    • Handle: RePEc:eee:streco:v:69:y:2024:i:c:p:406-416
    DOI: 10.1016/j.strueco.2024.02.008
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    More about this item

    Keywords

    Total factor energy efficiency; Distribution dynamics; Convergence; China;
    All these keywords.

    JEL classification:

    • Q43 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Energy and the Macroeconomy
    • Q48 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy - - - Government Policy
    • Q53 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Air Pollution; Water Pollution; Noise; Hazardous Waste; Solid Waste; Recycling
    • Q54 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Environmental Economics - - - Climate; Natural Disasters and their Management; Global Warming
    • D24 - Microeconomics - - Production and Organizations - - - Production; Cost; Capital; Capital, Total Factor, and Multifactor Productivity; Capacity
    • R11 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - General Regional Economics - - - Regional Economic Activity: Growth, Development, Environmental Issues, and Changes

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