Understanding industrial energy productivity growth in China: a production-theoretical approach

The purpose of this paper is to investigate the driving force behind industrial energy productivity growth in China from 2005 to 2010. The model of Wang (Energy, 32(8), 1326–1333, 2007) is extended to accommodate different technologies by relaxing the constant return to scale (CRS) assumption. In the empirical study, we find that (1) technological changes and capital-energy substitution are the main contributors to the increase in industrial energy productivity; (2) impacts of changes in technical efficiency, energy composition, and output structure are relatively trivial; (3) the effect of labor-energy substitution is unfavorable to industrial energy productivity growth.

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