Energy and CO2 emissions performance in China's regional economies: Do market-oriented reforms matter?. (March 2015)

• Record Type: Journal Article
• Authors: Lin, Boqiang; Du, Kerui
• Is Part Of: Energy policy. Volume 78(2015)
• Page Start: 113
• Page End: 124
• Publication Date: 2015-03
• Subjects: Market-oriented reforms -- Energy and carbon efficiency -- Non-radial directional distance function; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2014.12.025
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: This paper employs a newly developed non-radial directional distance function to evaluate China's regional energy and CO2 emission performance for the period 1997–2009. Moreover, we analyze the impact of China's market-oriented reform on China's regional energy and carbon efficiency. The main findings are as follows. First, most of China's regions did not perform efficiently in energy use and CO2 emissions. Provinces in the east area generally performed better than those in the central and west areas. By contrast, provinces in the west area generally evidenced the lowest efficiency. Second, Market-oriented reforms, especially the promotion of factor market, were found to have positive effect on the efficiency of energy use and CO2 emissions. Third, the share of coal in the total energy consumption and the expansion of the industrial sector were found to be negatively correlated with China's regional energy and CO2 emissions performance. Based on the empirical findings, we provide policy suggestions for enhancing energy and carbon efficiency in China. Highlights: A newly developed NDDF are applied to evaluate China's energy and carbon performance. Most of China's regions did not perform efficiently in energy use and CO2 emissions. Market-oriented reforms contributed to improving China's energy and carbon efficiency.