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An Analysis of Energy Use Efficiency in China by Applying Stochastic Frontier Panel Data Models

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  • Xiaoyan Zheng

    (Department of Economics, Sogang University, 35 Baekbeom-ro (Sinsu-dong #1), Mapo-gu, Seoul 04107 Korea)

  • Almas Heshmati

    (Jönköping International Business School, Jönköping University, Room B5017, P.O. Box 1026, SE-551 11 Jonkoping, Sweden)

Abstract

This paper investigates energy use efficiency at the province level in China using the stochastic frontier panel data model approach. The stochastic frontier model is a parametric model which allows for the modeling of the relationship between energy use and its determinants using different control variables. The main control variables in this paper are energy policy and environmental and regulatory variables. This paper uses province level data from all provinces in China for the period 2010–2017. Three different models are estimated accounting for the panel nature of the data; province-specific heterogeneity and province-specific energy inefficiency effects are separated. The models differ because of their underlying assumptions, but they also complement each other. The paper also explains the degree of inefficiency in energy use by its possible determinants, including those related to the public energy policy and environmental regulations. This research supplements existing research from the perspective of energy policy and regional heterogeneity. The paper identifies potential areas for improving energy efficiency in the western and northeastern regions of China. Its findings provide new empirical evidence for estimating and evaluating China’s energy efficiency and a transition to cleaner energy sources and production.

Suggested Citation

  • Xiaoyan Zheng & Almas Heshmati, 2020. "An Analysis of Energy Use Efficiency in China by Applying Stochastic Frontier Panel Data Models," Energies, MDPI, vol. 13(8), pages 1-17, April.
    • Handle: RePEc:gam:jeners:v:13:y:2020:i:8:p:1892-:d:344930
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    References listed on IDEAS

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    Cited by:

    1. Victor Moutinho & Mara Madaleno, 2021. "Assessing Eco-Efficiency in Asian and African Countries Using Stochastic Frontier Analysis," Energies, MDPI, vol. 14(4), pages 1-17, February.
    2. Bożena Babiarz & Władysław Szymański, 2020. "Introduction to the Dynamics of Heat Transfer in Buildings," Energies, MDPI, vol. 13(23), pages 1-28, December.
    3. Aditya Prana Iswara & Jerry Dwi Trijoyo Purnomo & Lin-Han Chiang Hsieh & Aulia Ulfah Farahdiba & Andrian Dolfriandra Huruta, 2022. "More Is More? The Inquiry of Reducing Greenhouse Gas Emissions in the Upstream Petroleum Fields of Indonesia," Sustainability, MDPI, vol. 14(11), pages 1-18, June.
    4. Hiroyuki Taguchi & Aktamov Asomiddin, 2022. "Energy-Use Inefficiency and Policy Governance in Central Asian Countries," Energies, MDPI, vol. 15(4), pages 1-15, February.
    5. Sheng Zhang & Meng Xu & Yifu Yang & Zeyu Song, 2021. "Technological Innovation, Production Efficiency, and Sustainable Development: A Case Study from Shenzhen in China," Sustainability, MDPI, vol. 13(19), pages 1-12, September.

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