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The Effect of Market Reforms on Structural Change: Implications for Energy Use and Carbon Emissions in China

Karen Fisher-Vanden

Year: 2003
Volume: Volume24
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol24-No3-2
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Abstract:
This paper assesses the role played by market reforms in shaping the future level and composition of production, energy use, and carbon emissions in China. Arguments have been made that reducing distortions in China s economy through market reforms will lead to energy efficiency improvements and lower carbon emissions in China. However, these arguments are based on partial and not general equilibrium analyses, and therefore overlook the effects of market reforms on economic growth and structural change. The results suggest that further implementation of market reforms could result in a structural shift to less carbon-intensive production and thus lower carbon emissions per unit GDP. However, this fall in carbon intensity is not enough to compensate for the greater use of energy as a result of market reforms due to higher economic growth and changes in the composition of production. Therefore, China s transition to a market economy could result in significantly higher economic growth, energy use, and carbon emissions. These results could have implications for other countries considering or undergoing market transition.



Factors influencing energy intensity in four Chinese industries

Karen Fisher-Vanden, Yong Hu, Gary Jefferson, Michael Rock and Michael Toman

Year: 2016
Volume: Volume 37
Number: China Special Issue
DOI: 10.5547/01956574.37.SI1.kfis
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Abstract:
In this paper, we investigate the determinants of decline in energy intensity in four Chinese industries - pulp and paper, cement, iron and steel, and aluminum. This paper attempts to answer the following key question: For the purpose of promoting energy efficiency, do prices, technology, enterprise restructuring and other policy-related instruments affect various sectors uniformly so as to justify uniform industrial energy conservation policies, or do different industries respond significantly differently so as to require policies that are tailored to each sector separately? In this paper, we examine this question using data for China's most energy-intensive large and medium-size enterprises over the period 1999-2004. Our results suggest that in all four industries rising energy costs are a significant contributor to the decline in energy intensity over our period of study. China's industrial policies encouraging consolidations and scale economies also seem to have contributed to reductions in energy intensity in these four industries.





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