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China’s Technological Catch-Up StrategyIndustrial Development, Energy Efficiency, and CO2 Emissions$
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Michael T. Rock and Michael Toman

Print publication date: 2015

Print ISBN-13: 9780199385324

Published to Oxford Scholarship Online: January 2015

DOI: 10.1093/acprof:oso/9780199385324.001.0001

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Determinants of Energy Intensity

Determinants of Energy Intensity

(p.188) Chapter 8 Determinants of Energy Intensity
China’s Technological Catch-Up Strategy

Michael T. Rock

Michael Toman

Oxford University Press

Individual industry estimates of CO2 savings may not be particularly good at separating out the impact of scale, technology, and price effects on energy efficiency and CO2 intensity. Econometric analysis based on a sample of Chinese enterprises in the four industries under consideration (aluminum, cement, iron and steel, and paper), using a common KLEM-type model, provides additional insight in sorting out the contributions of these effects. The results broadly confirm the finding of the individual industry analyses. There is strong statistical support for the hypotheses that energy price and own-enterprise technology investments lead to substantially lower energy intensity. Larger-scale enterprises have lower energy intensities, and increased investments in research and development have decreased energy intensity. The analysis controls for other effects, such as ownership form and regional location of enterprises, and it holds when the sample is broken into different time periods.

Keywords:   aluminum industry, cement industry, paper industry, KLEM model, energy efficiency, CO2 intensity

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