IDEAS home Printed from https://ideas.repec.org/a/mes/chinec/v50y2017i6p405-424.html
   My bibliography  Save this article

Structural Change and Energy Use in China: A SAM-based CGE Analysis

Author

Listed:
  • Xiao Jiang
  • Haider A. Khan

Abstract

This article presents a structuralist computable general equilibrium (CGE) model for China based on a three productive activities—agriculture, energy and industry—social accounting matrix. Four simulation exercises are conducted using this model: industrial investment demand increase, industrial wage increase, exchange rate depreciation, and government spending increase in industry. Our results show that structural change associated with raising industrial labor productivity and employment-share are likely to result in simultaneous intensification of per worker energy-use and a slight reduction of energy productivity in China. Industrial wage increase creates cost-push inflation and output contraction, and exchange rate devaluation is expansionary. Furthermore, when the industrial exports are insensitive to relative price changes, currency devaluation becomes contractionary and wage increase results in a slight contraction in real GDP due to the “forced saving” effect. The model illustrates some policy challenges China faces in its attempt to achieve “green growth” objectives with a high level of employment.

Suggested Citation

  • Xiao Jiang & Haider A. Khan, 2017. "Structural Change and Energy Use in China: A SAM-based CGE Analysis," Chinese Economy, Taylor & Francis Journals, vol. 50(6), pages 405-424, November.
    • Handle: RePEc:mes:chinec:v:50:y:2017:i:6:p:405-424
    DOI: 10.1080/10971475.2017.1380021
    as

    Download full text from publisher

    File URL: http://hdl.handle.net/10.1080/10971475.2017.1380021
    Download Restriction: Access to full text is restricted to subscribers.
    File URL: https://libkey.io/10.1080/10971475.2017.1380021?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Omer, Ozlem & Capaldo, Jeronim, 2023. "The risks of the wrong climate policy for developing countries: Scenarios for South Africa," Ecological Economics, Elsevier, vol. 211(C).
    2. Khan, Haider, 2024. "Geoeconomics of a New Eurasia during the Fourth Industrial Revolution: The Role of China’s Innovation System, BRI and Sanctions from the Global North," MPRA Paper 119637, University Library of Munich, Germany.
    3. Khan, Haider, 2023. "Towards a General Complex Systems Model of Economic Sanctions with Some Results Outlining Consequences of Sanctions on the Russian Economy and the World," MPRA Paper 116806, University Library of Munich, Germany.
    4. Khan, Haider, 2023. "China’s Augmented National Innovation System (ANIS) and the Future: A Nonlinear Complex Systems Model with Application to Semiconductors and AI," MPRA Paper 116836, University Library of Munich, Germany.
    5. Khan, Haider, 2023. "Geoeconomics, China, Fourth Industrial Revolution and the Future," MPRA Paper 117362, University Library of Munich, Germany.

    More about this item

    Statistics

    Access and download statistics

    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:mes:chinec:v:50:y:2017:i:6:p:405-424. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Chris Longhurst (email available below). General contact details of provider: http://www.tandfonline.com/MCES20 .

    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.