Energy regulation in China: Objective selection, potential assessment and responsibility sharing by partial frontier analysis

To cope with the excessive growth of energy consumption, the Chinese government has been trying to strengthen the energy regulation system by introducing new initiatives that aim at controlling the total amount of energy consumption. A partial frontier analysis is performed in this paper to make a comparative assessment of the combinations of possible energy conservation objectives, new constraints and regulation strategies. According to the characteristics of the coordination of existing regulation structure and the optimality of regulation strategy, four scenarios are constructed and regional responsibilities are reasonably divided by fully considering the production technology in the economy. The relative importance of output objectives and the total amount controlling is compared and the impacts on the regional economy caused by the changes of regulation strategy are also evaluated for updating regulation policy.

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