IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v7y2015i6p7112-7136d50540.html
   My bibliography  Save this article

Determinants of Electricity Demand in Nonmetallic Mineral Products Industry: Evidence from a Comparative Study of Japan and China

Author

Listed:
  • Gang Du

    (Department of Business Management, Business School, East China Normal University, 500 Dongchuan Road, Shanghai 200241, China)

  • Chuanwang Sun

    (Collaborative Innovation Center for Energy Economics and Energy Policy, School of Economics, Xiamen University, Xiamen 361005, China)

Abstract

Electricity intensity is an important indicator for measuring production efficiency. A comparative study could offer a new perspective on investigating determinants of electricity demand. The Japanese non-metallic mineral products industry is chosen as the object for comparison considering its representative position in production efficiency. By adopting the cointegration model, this paper examines influencing factors of electricity demand in Japanese and Chinese non-metallic mineral products industries under the same framework. Results indicate that although economic growth and industrial development stages are different between the two countries, major factors that affect the sectoral energy consumption are the same. Specifically, economic growth and industrial activity contribute to the growth of sectoral electricity consumption, while R&D intensity, per capita productivity and electricity price are contributors to the decline of sectoral electricity consumption. Finally, in order to further investigate the development trend of sectoral electricity demand, future electricity consumption and conservation potential are predicted under different scenarios. Electricity demand of the Chinese non-metallic mineral products industry is predicted to be 680.53 TWh (terawatt-hours) in 2020 and the sectoral electricity conservation potentials are estimated to be 118.26 TWh and 216.25 TWh under the moderate and advanced electricity-saving scenarios, respectively.

Suggested Citation

  • Gang Du & Chuanwang Sun, 2015. "Determinants of Electricity Demand in Nonmetallic Mineral Products Industry: Evidence from a Comparative Study of Japan and China," Sustainability, MDPI, vol. 7(6), pages 1-25, June.
    • Handle: RePEc:gam:jsusta:v:7:y:2015:i:6:p:7112-7136:d:50540
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/7/6/7112/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/7/6/7112/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Mukherjee, Kankana, 2008. "Energy use efficiency in the Indian manufacturing sector: An interstate analysis," Energy Policy, Elsevier, vol. 36(2), pages 662-672, February.
    2. Worrell, Ernst & Martin, Nathan & Price, Lynn, 2000. "Potentials for energy efficiency improvement in the US cement industry," Energy, Elsevier, vol. 25(12), pages 1189-1214.
    3. Herrerias, M.J. & Joyeux, R. & Girardin, E., 2013. "Short- and long-run causality between energy consumption and economic growth: Evidence across regions in China," Applied Energy, Elsevier, vol. 112(C), pages 1483-1492.
    4. Dergiades, Theologos & Tsoulfidis, Lefteris, 2008. "Estimating residential demand for electricity in the United States, 1965-2006," Energy Economics, Elsevier, vol. 30(5), pages 2722-2730, September.
    5. MacKinnon, James G & Haug, Alfred A & Michelis, Leo, 1999. "Numerical Distribution Functions of Likelihood Ratio Tests for Cointegration," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 14(5), pages 563-577, Sept.-Oct.
    6. Gene M. Grossman & Elhanan Helpman, 1994. "Endogenous Innovation in the Theory of Growth," Journal of Economic Perspectives, American Economic Association, vol. 8(1), pages 23-44, Winter.
    7. Ma, Linwei & Fu, Feng & Li, Zheng & Liu, Pei, 2012. "Oil development in China: Current status and future trends," Energy Policy, Elsevier, vol. 45(C), pages 43-53.
    8. Ozturk, Ilhan & Aslan, Alper & Kalyoncu, Huseyin, 2010. "Energy consumption and economic growth relationship: Evidence from panel data for low and middle income countries," Energy Policy, Elsevier, vol. 38(8), pages 4422-4428, August.
    9. Ou, Xunmin & Zhang, Xiliang & Chang, Shiyan, 2010. "Scenario analysis on alternative fuel/vehicle for China's future road transport: Life-cycle energy demand and GHG emissions," Energy Policy, Elsevier, vol. 38(8), pages 3943-3956, August.
    10. Mahmoud A. T Elkhafif, 1992. "Estimating Disaggregated Price Elasticities in Industrial Energy Demand," The Energy Journal, International Association for Energy Economics, vol. 0(Number 4), pages 209-218.
    11. Lin, Boqiang & Wu, Ya & Zhang, Li, 2011. "Estimates of the potential for energy conservation in the Chinese steel industry," Energy Policy, Elsevier, vol. 39(6), pages 3680-3689, June.
    12. Wen, Zongguo & Chen, Min & Meng, Fanxin, 2015. "Evaluation of energy saving potential in China's cement industry using the Asian-Pacific Integrated Model and the technology promotion policy analysis," Energy Policy, Elsevier, vol. 77(C), pages 227-237.
    13. Lu, Shyi-Min & Lu, Ching & Tseng, Kuo-Tung & Chen, Falin & Chen, Chen-Liang, 2013. "Energy-saving potential of the industrial sector of Taiwan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 21(C), pages 674-683.
    14. Zhang, Qi & Ishihara, Keiichi N. & Mclellan, Benjamin C. & Tezuka, Tetsuo, 2012. "Scenario analysis on future electricity supply and demand in Japan," Energy, Elsevier, vol. 38(1), pages 376-385.
    15. Huntington, Hillard G., 1989. "The impact of sectoral shifts in industry on U.S. energy demands," Energy, Elsevier, vol. 14(6), pages 363-372.
    16. Liu, Xiaohui & Buck, Trevor, 2007. "Innovation performance and channels for international technology spillovers: Evidence from Chinese high-tech industries," Research Policy, Elsevier, vol. 36(3), pages 355-366, April.
    17. Zhou, Dongsheng & Li, Shaomin & Tse, David K., 2002. "The impact of FDI on the productivity of domestic firms: the case of China," International Business Review, Elsevier, vol. 11(4), pages 465-484, August.
    18. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    19. Athukorala, P.P.A Wasantha & Wilson, Clevo, 2010. "Estimating short and long-term residential demand for electricity: New evidence from Sri Lanka," Energy Economics, Elsevier, vol. 32(Supplemen), pages 34-40, September.
    20. Zvi Griliches, 1998. "Returns to Research and Development Expenditures in the Private Sector," NBER Chapters, in: R&D and Productivity: The Econometric Evidence, pages 49-81, National Bureau of Economic Research, Inc.
    21. Lin, Boqiang & Jiang, Zhujun, 2011. "Estimates of energy subsidies in China and impact of energy subsidy reform," Energy Economics, Elsevier, vol. 33(2), pages 273-283, March.
    22. Goel, Rajeev K. & Ram, Rati, 2001. "Irreversibility of R&D investment and the adverse effect of uncertainty: Evidence from the OECD countries," Economics Letters, Elsevier, vol. 71(2), pages 287-291, May.
    23. Yuan, Chaoqing & Liu, Sifeng & Wu, Junlong, 2010. "The relationship among energy prices and energy consumption in China," Energy Policy, Elsevier, vol. 38(1), pages 197-207, January.
    24. Yadav, Vinod Kumar & Padhy, N.P. & Gupta, H.O., 2010. "A micro level study of an Indian electric utility for efficiency enhancement," Energy, Elsevier, vol. 35(10), pages 4053-4063.
    25. Dees, Stephane, 1998. "Foreign Direct Investment in China: Determinants and Effects," Economic Change and Restructuring, Springer, vol. 31(2-3), pages 175-194.
    26. Su, Te-Li & Chan, David Yih-Liang & Hung, Ching-Yuan & Hong, Gui-Bing, 2013. "The status of energy conservation in Taiwan's cement industry," Energy Policy, Elsevier, vol. 60(C), pages 481-486.
    27. Phillips, P C B, 1987. "Time Series Regression with a Unit Root," Econometrica, Econometric Society, vol. 55(2), pages 277-301, March.
    28. Hasanbeigi, Ali & Menke, Christoph & Therdyothin, Apichit, 2010. "The use of conservation supply curves in energy policy and economic analysis: The case study of Thai cement industry," Energy Policy, Elsevier, vol. 38(1), pages 392-405, January.
    29. Muller-Furstenberger, Georg & Stephan, Gunter, 2007. "Integrated assessment of global climate change with learning-by-doing and energy-related research and development," Energy Policy, Elsevier, vol. 35(11), pages 5298-5309, November.
    30. Liu, Lan-Cui & Fan, Ying & Wu, Gang & Wei, Yi-Ming, 2007. "Using LMDI method to analyze the change of China's industrial CO2 emissions from final fuel use: An empirical analysis," Energy Policy, Elsevier, vol. 35(11), pages 5892-5900, November.
    31. David F. Hendry & Katarina Juselius, 2001. "Explaining Cointegration Analysis: Part II," The Energy Journal, International Association for Energy Economics, vol. 0(Number 1), pages 75-120.
    32. Asafu-Adjaye, John, 2000. "The relationship between energy consumption, energy prices and economic growth: time series evidence from Asian developing countries," Energy Economics, Elsevier, vol. 22(6), pages 615-625, December.
    33. Al-Iriani, Mahmoud A., 2006. "Energy-GDP relationship revisited: An example from GCC countries using panel causality," Energy Policy, Elsevier, vol. 34(17), pages 3342-3350, November.
    34. Zhou, P. & Ang, B.W. & Poh, K.L., 2008. "A survey of data envelopment analysis in energy and environmental studies," European Journal of Operational Research, Elsevier, vol. 189(1), pages 1-18, August.
    35. Hunt, Lester & Manning, Neil, 1989. "Energy Price- and Income-Elasticities of Demand: Some Estimates for the UK Using the Cointegration Procedure," Scottish Journal of Political Economy, Scottish Economic Society, vol. 36(2), pages 183-193, May.
    36. Audretsch, David B & Feldman, Maryann P, 1996. "R&D Spillovers and the Geography of Innovation and Production," American Economic Review, American Economic Association, vol. 86(3), pages 630-640, June.
    37. Tang, Chor Foon & Tan, Eu Chye, 2013. "Exploring the nexus of electricity consumption, economic growth, energy prices and technology innovation in Malaysia," Applied Energy, Elsevier, vol. 104(C), pages 297-305.
    38. Phillips, P C B, 1987. "Time Series Regression with a Unit Root," Econometrica, Econometric Society, vol. 55(2), pages 277-301, March.
    39. Meier, Alan & Rosenfeld, Arthur H. & Wright, Janice, 1982. "Supply curves of conserved energy for California's residential sector," Energy, Elsevier, vol. 7(4), pages 347-358.
    40. Hasanbeigi, Ali & Morrow, William & Sathaye, Jayant & Masanet, Eric & Xu, Tengfang, 2013. "A bottom-up model to estimate the energy efficiency improvement and CO2 emission reduction potentials in the Chinese iron and steel industry," Energy, Elsevier, vol. 50(C), pages 315-325.
    41. El-Shazly, Alaa, 2013. "Electricity demand analysis and forecasting: A panel cointegration approach," Energy Economics, Elsevier, vol. 40(C), pages 251-258.
    42. Erdogdu, Erkan, 2007. "Electricity demand analysis using cointegration and ARIMA modelling: A case study of Turkey," Energy Policy, Elsevier, vol. 35(2), pages 1129-1146, February.
    43. Charnes, A. & Cooper, W. W. & Rhodes, E., 1978. "Measuring the efficiency of decision making units," European Journal of Operational Research, Elsevier, vol. 2(6), pages 429-444, November.
    44. Hong, Gui-Bing & Su, Te-Li & Lee, Jenq-Daw & Hsu, Tsung-Chi & Chen, Hua-Wei, 2010. "Energy conservation potential in Taiwanese textile industry," Energy Policy, Elsevier, vol. 38(11), pages 7048-7053, November.
    45. Mark Jaccard & John Nyboer & Allan Fogwill, 1993. "How Big is the Electricity Conservation Potential in Industry?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 139-156.
    46. Lin, Boqiang & Ouyang, Xiaoling, 2014. "Analysis of energy-related CO2 (carbon dioxide) emissions and reduction potential in the Chinese non-metallic mineral products industry," Energy, Elsevier, vol. 68(C), pages 688-697.
    47. Mukherjee, Kankana, 2010. "Measuring energy efficiency in the context of an emerging economy: The case of indian manufacturing," European Journal of Operational Research, Elsevier, vol. 201(3), pages 933-941, March.
    48. Geller, Howard S. & Goldemberg, José & Roberto Moreira, José & Hukai, Roberto & Scarpinella, Claudio & Ysohizawa, Mamiro, 1988. "Electricity conservation in Brazil: Potential and progress," Energy, Elsevier, vol. 13(6), pages 469-483.
    49. Ogawa, Kazuo, 2007. "Debt, R&D investment and technological progress: A panel study of Japanese manufacturing firms' behavior during the 1990s," Journal of the Japanese and International Economies, Elsevier, vol. 21(4), pages 403-423, December.
    50. Johansen, Soren, 1995. "Likelihood-Based Inference in Cointegrated Vector Autoregressive Models," OUP Catalogue, Oxford University Press, number 9780198774501.
    51. Wakelin, Katharine, 2001. "Productivity growth and R&D expenditure in UK manufacturing firms," Research Policy, Elsevier, vol. 30(7), pages 1079-1090, August.
    52. Lin, Boqiang & Zhang, Li & Wu, Ya, 2012. "Evaluation of electricity saving potential in China's chemical industry based on cointegration," Energy Policy, Elsevier, vol. 44(C), pages 320-330.
    53. Hasanbeigi, Ali & Price, Lynn & Lu, Hongyou & Lan, Wang, 2010. "Analysis of energy-efficiency opportunities for the cement industry in Shandong Province, China: A case study of 16 cement plants," Energy, Elsevier, vol. 35(8), pages 3461-3473.
    54. Engle, R. F. & Granger, C. W. J. & Hallman, J. J., 1989. "Merging short-and long-run forecasts : An application of seasonal cointegration to monthly electricity sales forecasting," Journal of Econometrics, Elsevier, vol. 40(1), pages 45-62, January.
    55. Hua Zhang & Zong-Guo Wen, 2014. "Residents’ Household Solid Waste (HSW) Source Separation Activity: A Case Study of Suzhou, China," Sustainability, MDPI, vol. 6(9), pages 1-21, September.
    56. Cole, Matthew A. & Elliott, Robert J.R. & Wu, Shanshan, 2008. "Industrial activity and the environment in China: An industry-level analysis," China Economic Review, Elsevier, vol. 19(3), pages 393-408, September.
    57. Lin, Boqiang & Ouyang, Xiaoling, 2014. "Electricity demand and conservation potential in the Chinese nonmetallic mineral products industry," Energy Policy, Elsevier, vol. 68(C), pages 243-253.
    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. Agnes Horvath & Adrienn Takacsne Papp & L szl Molnar & Katalin Liptak & Zoltan Musinszki & Klara Szucsne Markovics, 2023. "Climate and Energy Issues of Energy-Intensive Sectors," The AMFITEATRU ECONOMIC journal, Academy of Economic Studies - Bucharest, Romania, vol. 25(64), pages 813-813, August.

    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. Lin, Boqiang & Ouyang, Xiaoling, 2014. "Electricity demand and conservation potential in the Chinese nonmetallic mineral products industry," Energy Policy, Elsevier, vol. 68(C), pages 243-253.
    2. Lin, Boqiang & Zhang, Guoliang, 2013. "Estimates of electricity saving potential in Chinese nonferrous metals industry," Energy Policy, Elsevier, vol. 60(C), pages 558-568.
    3. Wang, Xiaolei & Lin, Boqiang, 2016. "How to reduce CO2 emissions in China׳s iron and steel industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1496-1505.
    4. Lin, Boqiang & Wang, Xiaolei, 2014. "Promoting energy conservation in China's iron & steel sector," Energy, Elsevier, vol. 73(C), pages 465-474.
    5. Lin, Boqiang & Chen, Yu & Zhang, Guoliang, 2018. "Impact of technological progress on China's textile industry and future energy saving potential forecast," Energy, Elsevier, vol. 161(C), pages 859-869.
    6. Lin, Boqiang & Long, Houyin, 2014. "Promoting carbon emissions reduction in China's chemical process industry," Energy, Elsevier, vol. 77(C), pages 822-830.
    7. Ouyang, Xiaoling & Lin, Boqiang, 2015. "An analysis of the driving forces of energy-related carbon dioxide emissions in China’s industrial sector," Renewable and Sustainable Energy Reviews, Elsevier, vol. 45(C), pages 838-849.
    8. Lin, Boqiang & Wu, Ya & Zhang, Li, 2012. "Electricity saving potential of the power generation industry in China," Energy, Elsevier, vol. 40(1), pages 307-316.
    9. Lin, Boqiang & Long, Houyin, 2014. "How to promote energy conservation in China’s chemical industry," Energy Policy, Elsevier, vol. 73(C), pages 93-102.
    10. Lin, Boqiang & Zhang, Li & Wu, Ya, 2012. "Evaluation of electricity saving potential in China's chemical industry based on cointegration," Energy Policy, Elsevier, vol. 44(C), pages 320-330.
    11. Lin, Boqiang & Xie, Chunping, 2013. "Estimation on oil demand and oil saving potential of China's road transport sector," Energy Policy, Elsevier, vol. 61(C), pages 472-482.
    12. Eleni Constantinou & Avo Kazandjian & Georgios P. Kouretas & Vera Tahmazian, 2008. "Common Stochastic Trends Among The Cyprus Stock Exchange And The Ase, Lse And Nyse," Bulletin of Economic Research, Wiley Blackwell, vol. 60(4), pages 327-349, October.
    13. Huang, Yun-Hsun & Chang, Yi-Lin & Fleiter, Tobias, 2016. "A critical analysis of energy efficiency improvement potentials in Taiwan's cement industry," Energy Policy, Elsevier, vol. 96(C), pages 14-26.
    14. Zou, Gao Lu, 2012. "The long-term relationships among China's energy consumption sources and adjustments to its renewable energy policy," Energy Policy, Elsevier, vol. 47(C), pages 456-467.
    15. S.P. Jayasooriya, 2009. "A Dynamic Equilibrium between Inflation and Minimum Wages in Sri Lanka," Margin: The Journal of Applied Economic Research, National Council of Applied Economic Research, vol. 3(2), pages 113-132, April.
    16. Rodrigues da Silva, Rafael & Mathias, Flavio Roberto de Carvalho & Bajay, Sergio Valdir, 2018. "Potential energy efficiency improvements for the Brazilian iron and steel industry: Fuel and electricity conservation supply curves for integrated steel mills," Energy, Elsevier, vol. 153(C), pages 816-824.
    17. Xu, Bin & Lin, Boqiang, 2016. "Assessing CO2 emissions in China’s iron and steel industry: A dynamic vector autoregression model," Applied Energy, Elsevier, vol. 161(C), pages 375-386.
    18. Sohag, Kazi & Begum, Rawshan Ara & Abdullah, Sharifah Mastura Syed & Jaafar, Mokhtar, 2015. "Dynamics of energy use, technological innovation, economic growth and trade openness in Malaysia," Energy, Elsevier, vol. 90(P2), pages 1497-1507.
    19. Nermin Ya ar, 2017. "The Relationship between Energy Consumption and Economic Growth: Evidence from Different Income Country Groups," International Journal of Energy Economics and Policy, Econjournals, vol. 7(2), pages 86-97.
    20. Miguel Carvalho & Paulo Júlio, 2012. "Digging out the PPP hypothesis: an integrated empirical coverage," Empirical Economics, Springer, vol. 42(3), pages 713-744, June.

    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:gam:jsusta:v:7:y:2015:i:6:p:7112-7136:d:50540. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.