China's State Energy Investment during 1991–2007: Investment Analysis and Policy Issues. Issue 10 (2nd October 2016)

• Record Type: Journal Article
• Authors: Bo, Hong; Zhang, Baoshan; Oughton, Christine; Yuan, Xiaoling; Ma, Jun
• Is Part Of: Regional studies. Volume 50:Issue 10(2016)
• Page Start: 1769
• Page End: 1784
• Publication Date: 2016-10-02
• Subjects: China's state energy investment -- Energy demand -- Energy productivity -- Policy objectives -- Generalized method of moments (GMM); 中国的国家能源投资 -- 能源需求 -- 能源生产力 -- 政策目标 -- 广义矩估计（GMM）; Investissements étatiques chinois en matière d'énergie -- Besoins en énergie -- Productivité énergétique -- Objectifs politiques -- Méthodes des moments généralisés (GMM); Staatliche Energieinvestitionen in China -- Energienachfrage -- Energieproduktivität -- Politische Ziele -- Verallgemeinerte Momentenmethode (GMM); Inversión en energía estatal en China -- Demanda energética -- Productividad energética -- Objetivos políticos -- Método generalizado de momentos; H11 -- P28 -- R11; Regional planning -- Periodicals; Regional planning -- Great Britain -- Periodicals; 307.14
• DOI: 10.1080/00343404.2015.1058922
• Languages: English
• ISSNs: 0034-3404

Abstract

Abstract : Bo H., Zhang B., Oughton C., Yuan X. and Ma J. China's state energy investment during 1991–2007: investment analysis and policy issues, Regional Studies . This article examines China's state energy investment during 1991–2007 using provincial-level panel data. The analysis shows that China's state energy investment is (1) driven by demand for energy, (2) mostly unrelated to energy efficiency, (3) undertaken with the consideration of reducing negative externalities associated with energy production, (4) used by central government to subsidize some local governments, and (5) directed to heavy industries. Policy impacts (4) and (5) are more profound in provinces in which the state's ownership of the provincial industry is high. In addition, results (4) and (5) are stronger at the earlier stage of China's domestic reform and before China's entry into the World Trade Organization (WTO), which suggests that these policy impacts weaken along with the progress of China's market transition. In sum, China's state energy investment responds to demand signals, but state ownership enables the government to implement its policy objectives, possibly at the cost of economic efficiency.