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Incentives for Energy Conservation in the Commercial and Industrial Sectors

Kenneth E. Train

Year: 1988
Volume: Volume 9
Number: Number 3
DOI: 10.5547/ISSN0195-6574-EJ-Vol9-No3-5
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Abstract:
The commercial and industrial sectors consume over half of the United States' electricity. Several studies have indicated that this consumption can be reduced by as much as 40 to 50 percent through cost-effective energy conservation (e.g., Dubin, 1977; Taussig, 1978). Examples of conservation actions include installation of low voltage lamps, more effective placement of lights, electronic controls for air conditioners and lights, evaporative precoolers on air conditioners and refrigerators, heat recovery systems, and so on. These actions have been found to offer, on average, exceptionally good rates of return, both to the firms that take the actions and from a social perspective (Train and Ignelzi, 1987).



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.



Can China's Energy Intensity Constraint Policy Promote Total Factor Energy Efficiency? Evidence from the Industrial Sector

Shuai Shao, Zhenbing Yang, Lili Yang, and Shuang Ma

Year: 2019
Volume: Volume 40
Number: Number 4
DOI: 10.5547/01956574.40.4.ssha
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Abstract:
As part of the country's efforts to achieve green development, China implemented a mandatory energy intensity reduction target in its 11th "Five-Year Plan (FYP)" in 2006, and then began to roll out a series of relevant measures. However, existing studies have paid little attention to the actual effects of China's energy intensity constraint policy (EICP). In this paper, using panel data from China's 36 industrial sub-sectors covering the years from 2001 to 2014, we adopt the difference-in-differences (DID) method to investigate for the first time the EICP's (marginal) effect on total factor energy efficiency growth (TFEEG). We also estimate the superposition effect caused by the introduction of a carbon intensity constraint policy (CICP) on TFEEG, through the difference-in-difference-in-differences (DDD) strategy. Finally, using counterfactual, re-grouping and quasi-DID analyses, we conduct a series of robustness tests of the empirical results. The results show that the TFEEG in China's industrial sector experienced an overall declining trend between 2001 and 2014. The implementation of the EICP has had a significantly negative effect on the improvement of the TFEEG of sub-sectors with higher levels of energy intensity. After the implementation of the EICP, the TFEEG rate of these sub-sectors declined by 4.31%, compared to the rate of the other sub-sectors. The results of a series of robustness tests indicate that such a negative effect is credible. The marginal effect in the first two years after the implementation of the EICP was significantly negative, while the superposition effect of the introduction of a CICP on industrial TFEEG remained negative. Thus, the Chinese government should reinforce the implementation of energy-saving policies by introducing additional market-oriented auxiliary policies to propel the green development transformation of China's industrial sector.





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