Total Factor Productivity, Inputs Substitution and Regional Energy —An Analysis Based on Distance Function
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| Title | Total Factor Productivity, Inputs Substitution and Regional Energy —An Analysis Based on Distance Function
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| Author | Sun Gaungsheng, Huang Yi and Wang Fengping |
| Organization | Northeastern University |
| Email | gssun@mail.neu.edu.cn；yhuang@mail.neu.edu.cn；1404705333@qq.com |
| Key Words | Energy Efficiency; Total Factor Productivity; Technical Change; Technical Efficiency; Inputs Substitution |
| Abstract | In this paper, the traditional energy efficiency index is decomposed to analyze the change of energy efficiency and its determinants on Chinese provincial-level in 1986-2010. The conclusions drawn are as follows: (1)The main factors that affect the energy efficiency according to their contribution are technical change, inputs substitution and efficiency change respectively. In general, total factor productivity has more impact on energy efficiency than inputs substitution effect; (2) Regional energy efficiency disparity is quite obvious, and “Energy Efficiency Gap” widens year by year which presents “Matthew Effect”;(3) The contribution of total factor productivity to regional energy efficiency disparity is roughly similar to that of inputs substitution. However, as for the two components of total factor productivity, technical efficiency plays a much more important role than technical change. The results indicate the improvement of Chinese energy efficiency is mainly driven by technical change, meanwhile, technical efficiency is a key factor of regional energy efficiency disparity. Improving technical efficiencies of inefficient regions, therefore, will not only help to narrow regional development imbalance but also provide broad space for raising Chinese national energy efficiency. |
| Serial Number | WP324 |
| Time | 2012-08-29 |
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