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2023 | Book

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The Endogenous Energy-Saving Technological Change in China's Industrial Sector

Author: Xubo He

Publisher: Springer Nature Singapore

Part of: Springer Professional "Wirtschaft+Technik" , Springer Professional "Technik" , Springer Professional "Wirtschaft"

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About this book

As improving energy efficiency and increasing energy R&D investment may be the main means for China's industrial sector to achieve sustainable growth, this book attempts to unify energy use efficiency and energy R&D inputs into a standardized economic analysis framework. By distinguishing between energy R&D inputs and non-energy R&D inputs, this book draws on the research paradigm of neoclassical economics to clarify the basic concepts and endogenous mechanisms of energy-saving technological progress as a logical starting point. Under the framework of the existing endogenous growth theory analysis, the heterogeneous R&D inputs are divided into two different mechanisms that affect energy use efficiency, namely factor substitution effect and energy-efficient input increase effect, and a heterogeneous R&D input is constructed. This book constructed an analytical framework for endogenous energy-saving technological progress in the industrial sector based on heterogeneous R&D inputs; it established a mathematical model for the endogenous energy-saving technological advancement of the industrial sector based on heterogeneous R&D inputs; it estimated the energy-saving technological progress rate of 37 Chinese industrial sub-sectors from 1980 to 2010; fourth, it has empirically examined the relationship between the heterogeneous R&D investment in China's industrial sector and its energy-saving technological advancement rate.

Table of Contents

Frontmatter
Chapter 1. Introduction
Abstract
Energy is the foundation and guarantee of economic growth and social development. Since the introduction of the reform and opening up policy in the late 1970s, China has experienced rapid economic growth, which has lifted large numbers of people out of poverty, but meanwhile has produced tremendous pressure on the energy market and the natural environment. According to statistics provided by British Petroleum (BP), China accounted for 20.3% of the global primary energy consumption in 2010, including 10.6% of oil, 3.4% of natural gas, and 48.2% of coal. In the past 30 years, Chinese industry contributed only 40.1% of GDP, but consumed 67.9% of energy and emitted 83.1% of carbon dioxide nationwide (Shiyi, Shiyi Economic Research 04:41–55, 2009). With urbanization and industrialization accelerating, China’s reliance on energy will only increase in the future.
Xubo He
Chapter 2. Literature Review
Abstract
Energy-saving technological change has been a hot topic in the energy-economic-environmental (3E) discussions in Western developed countries. As the issues of energy security, climate change mitigation and energy efficiency improvement ascend on government agendas around the world, ESTC has attracted attention from researchers of different disciplines and specialties. While a considerable amount of knowledge about ESTC has accrued, there is a great divergence of views among the researchers, who even have yet to reach a consensus on the basic concept of ESTC. That is why the theory of ESTC is a field that deserves study and has much room for improvement.
Xubo He
Chapter 3. The Analytical Framework for Understanding R&D Heterogeneity-Based ESTC in Industry
Abstract
Since an economy is a grand system consisting of numerous economic actors, social institutions and the natural environment, and complex interrelationships between them, economists are compelled to form various economic concepts in one way or another as subsystems constituting a structure, which is often called a framework of economic analysis.
Xubo He
Chapter 4. The Mathematical Model of R&D Heterogeneity-Based Endogenous ESTC in Industry
Abstract
Based on the framework for R&D heterogeneity-based endogenous ESTC in industry introduced in Chap. 3, this chapter is to develop a mathematical model of the same theme by specifying the utility function for representative households and the production technology and economic conditions of representative manufacturers, and to compare the outcomes of the model using competitive equilibrium analysis and centrally planned equilibrium analysis.
Xubo He
Chapter 5. Estimation of ESTC Rates in China’s Industrial Sectors: 1980–2010
Abstract
In this chapter, I will relax the production function assumption introduced in Chap. 4, adopt a more general three-factor nested CES function to represent the behavior of the final goods producing sector, and make estimates about all forms of the three-factor nested CES production function.
Xubo He
Chapter 6. Empirical Analysis of R&D Heterogeneity-Based ESTC in China’s Industrial Sectors
Abstract
As the second part of my empirical analysis, this chapter builds on Chap. 5 to further examine the relationship between heterogeneous R&D investments and the rates of ESTC in China’s industrial sectors, and test the basic assumptions in the framework constructed in this book. The major hypothesis put to test here is (4–16) suggested in Chap. 4, which states that investment in energy R&D has a positive effect on ESTC. Given that the existing statistics do not tell where R&D investment goes in the industrial sectors and of what nature it is, I need first to get clear on how energy R&D investment and non-energy R&D investment are measured, and then test empirically the relationship between R&D heterogeneity and the rates of ESTC through multiple econometric models.
Xubo He
Chapter 7. Main Findings and Research Outlook
Abstract
Based on the existing theories and analytical methods, I have attempted to clarify and define the basic concept and connotations of energy-saving technological change, distinguish between energy R&D investment and non-energy R&D investment, and explore how R&D heterogeneity affects ESTC, and incorporate two effects of R&D heterogeneity on energy efficiency, i.e., the effect of factor substitution and the effect of increased effective energy input, into one analytical framework. By doing so, I have for the first time built an analytical framework for endogenous ESTC in China’s industrial sectors from the perspective of R&D heterogeneity, thus expanding the existing analytical framework for endogenous ESTC.
Xubo He
Metadata
Title
The Endogenous Energy-Saving Technological Change in China's Industrial Sector
Author
Xubo He
Copyright Year
2023
Publisher
Springer Nature Singapore
Electronic ISBN
978-981-19-7485-4
Print ISBN
978-981-19-7484-7
DOI
https://doi.org/10.1007/978-981-19-7485-4