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Does Economic Policy Intervention Inhibit the Efficiency of China’s Green Energy Economy?

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  • Zhiyu Fang

    (College of International Economics and Trade, Fujian Business University, Fuzhou 350012, China)

  • Ling Jiang

    (School of Economics, Fujian Normal University, Fuzhou 350007, China)

  • Zhong Fang

    (School of Economics, Fujian Normal University, Fuzhou 350007, China)

Abstract

Due to the different focus of policies in different regions, China’s energy efficiency has been unstable in recent years. The changing focus of policies at the same time has also impacted the energy system, and therefore, it is very important to explore the impact of China’s new energy policy on its oil and gas energy efficiency. The practical significance of this research is to integrate three policy intervention factors: incentive economic policy intervention, government financial intervention, and mandatory policy intervention. Through the regression of the Stochastic Frontier Approach model, the influence of these policy intervention factors on the efficiency evaluation of decision-making units is eliminated. We calculate the environmental pollution index as an undesired output to measure the efficiency of policy intervention in the green economy of China’s oil and gas energy, use Luenberger model to explore total factor productivity, and find the main reasons that affect the productivity of the green energy economy. The results show that China’s oil and gas energy construction is currently in the stage of scale economy, but the heavy dependence of China’s energy consumption on foreign imports leads to difficulties and urgency in the present stage of technological progress. After excluding the factors of policy intervention, China’s overall energy is in a slightly insufficient policy environment, and energy efficiency is in an unbalanced state.

Suggested Citation

  • Zhiyu Fang & Ling Jiang & Zhong Fang, 2021. "Does Economic Policy Intervention Inhibit the Efficiency of China’s Green Energy Economy?," Sustainability, MDPI, vol. 13(23), pages 1-20, December.
    • Handle: RePEc:gam:jsusta:v:13:y:2021:i:23:p:13412-:d:694497
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