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Assessment and Decomposition of Total Factor Energy Efficiency: An Evidence Based on Energy Shadow Price in China

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  • Peihao Lai

    (Department of mathematics, College of Information Science and Technology, Jinan University, Guangzhou 510632, China)

  • Minzhe Du

    (Department of Economics, School of Economics, Jinan University, Guangzhou 510632, China)

  • Bing Wang

    (Department of Economics, School of Economics, Jinan University, Guangzhou 510632, China)

  • Ziyue Chen

    (Institute of Industrial Economics, Jinan University, Guangzhou 510632, China)

Abstract

By adopting an energy-input based directional distance function, we calculated the shadow price of four types of energy ( i.e. , coal, oil, gas and electricity) among 30 areas in China from 1998 to 2012. Moreover, a macro-energy efficiency index in China was estimated and divided into intra-provincial technical efficiency, allocation efficiency of energy input structure and inter-provincial energy allocation efficiency. It shows that total energy efficiency has decreased in recent years, where intra-provincial energy technical efficiency drops markedly and extensive mode of energy consumption rises. However, energy structure and allocation improves slowly. Meanwhile, lacking an integrated energy market leads to the loss of energy efficiency. Further improvement of market allocation and structure adjustment play a pivotal role in the increase of energy efficiency.

Suggested Citation

  • Peihao Lai & Minzhe Du & Bing Wang & Ziyue Chen, 2016. "Assessment and Decomposition of Total Factor Energy Efficiency: An Evidence Based on Energy Shadow Price in China," Sustainability, MDPI, vol. 8(5), pages 1-23, April.
    • Handle: RePEc:gam:jsusta:v:8:y:2016:i:5:p:408-:d:68945
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    References listed on IDEAS

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