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Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis

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  • Xiaobo Shen

    (China Center for Energy Economics Research, School of Economics, Xiamen University, Xiamen 361005, China)

  • Boqiang Lin

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

Abstract

Based on stochastic frontier analysis and translog input distance function, this paper examines the total factor energy efficiency of China’s industry using input-output data of 30 sub-industries from 2002 to 2014, and decomposes the changes in estimated total factor energy efficiency into the effects of technical change, technical efficiency change, scale efficiency change and input-mix effect. The results show that during this period the total factor energy efficiency in China’s industry grew annually at a rate of 3.63%; technical change, technical efficiency change and input-mix effect contributed positively to the change in total factor energy efficiency; while scale efficiency change contributed negatively to it.

Suggested Citation

  • Xiaobo Shen & Boqiang Lin, 2017. "Total Factor Energy Efficiency of China’s Industrial Sector: A Stochastic Frontier Analysis," Sustainability, MDPI, vol. 9(4), pages 1-17, April.
    • Handle: RePEc:gam:jsusta:v:9:y:2017:i:4:p:646-:d:96217
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    References listed on IDEAS

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    Cited by:

    1. Lizhan Cao & Zhongying Qi & Junxia Ren, 2017. "China’s Industrial Total-Factor Energy Productivity Growth at Sub-Industry Level: A Two-Step Stochastic Metafrontier Malmquist Index Approach," Sustainability, MDPI, vol. 9(8), pages 1-22, August.
    2. Lin Zhang and Philip Kofi Adom, 2018. "Energy Efficiency Transitions in China: How Persistent are the Movements to/from the Frontier?," The Energy Journal, International Association for Energy Economics, vol. 0(Number 6).
    3. Chen, Yufen & Liu, Yanni, 2021. "How biased technological progress sustainably improve the energy efficiency: An empirical research of manufacturing industry in China," Energy, Elsevier, vol. 230(C).
    4. Dilawar Khan & Muhammad Nouman & József Popp & Muhammad Asif Khan & Faheem Ur Rehman & Judit Oláh, 2021. "Link between Technically Derived Energy Efficiency and Ecological Footprint: Empirical Evidence from the ASEAN Region," Energies, MDPI, vol. 14(13), pages 1-16, June.
    5. Lester C. Hunt & Paraskevas Kipouros, 2023. "Energy Demand and Energy Efficiency in Developing Countries," Energies, MDPI, vol. 16(3), pages 1-26, January.
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    7. Peng Hou & Yilin Li & Yong Tan & Yuanjie Hou, 2020. "Energy Price and Energy Efficiency in China: A Linear and Nonlinear Empirical Investigation," Energies, MDPI, vol. 13(16), pages 1-24, August.

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