Multiple timescale analysis and factor analysis of energy ecological footprint growth in China 1953–2006

Scientific analysis of energy consumption and its influencing factors is of great importance for energy strategy and policy planning. The energy consumption in China 1953–2006 is estimated by applying the energy ecological footprint (EEF) method, and the fluctuation periods of annual China's per capita EEF (EEF_cpc) growth rate are analyzed with the empirical mode decomposition (EMD) method in this paper. EEF intensity is analyzed to depict energy efficiency in China. The main timescales of the 37 factors that affect the annual growth rate of EEF_cpc are also discussed based on EMD and factor analysis methods. Results show three obvious undulation cycles of the annual growth rate of EEF_cpc, i.e., 4.6, 14.4 and 34.2 years over the last 53 years. The analysis findings from the common synthesized factors of IMF1, IMF2 and IMF3 timescales of the 37 factors suggest that China's energy policy-makers should attach more importance to stabilizing economic growth, optimizing industrial structure, regulating domestic petroleum exploitation and improving transportation efficiency.     

Comprehensive evaluation of household indirect energy consumption and impacts of alternative energy policies in China by input–output analysis

Households consume a large amount of indirect energy through the consumption of goods and services. This fact makes the quantitative analysis of indirect household energy consumption the foundation of energy policy design. This paper improves the compilation method of energy input–output tables, and establishes a sequence of energy input–output tables for China. Based on these tables, the indirect energy consumption of both rural and urban households is calculated. Then, with economic data for the year of 2005, the adjusted input–output price model is applied to evaluate how the alternative energy policies impact production prices, consumption prices, and real income of rural and urban households through the mechanism of indirect energy consumption by using electricity as an example. This research has practical implications for Chinese economy. The integration of energy-efficiency improvements and energy prices increase serves as a means to achieve both economic and energy conservation goals, and may also have a positive effect on residents’ real income and a minimal effect on production prices.     

Economic assessment of virtual power plants in the German energy market — A scenario-based and model-supported analysis

The energy transition (“Energiewende”) in Germany will result in a substantial transformation of the energy supply system. Virtual power plants are expected to be important components of the new intelligent energy infrastructure. They aggregate beside different types of distributed generation units also active consumers and storage technologies in order to integrate these in a profit-maximising, system-stabilising, and sustainable way. The assessment of the economic performance of virtual power plants requires a scenario-based and model-supported analysis. In this relation, future energy market conditions are simulated using the scenario methodology. Starting from the year 2015, three scenarios have been identified that illustrate alternative energy developments in Germany by 2030. Based on these scenarios, the additional revenues potential of the modeled virtual power plant is identified when compared to an independent and non-market-oriented operation mode of distributed energy resources. According to the model results, revenues of the VPP can increase by 11% up to 30% in the analyzed scenarios in 2030 due to the market-oriented operation mode. Nevertheless, the amount and composition vary depending on technology-specific subsidies, temporary nature of power demand and price structures in the energy market. Fluctuating renewable energies are expected to benefit from the market-oriented operation mode in the virtual power plant, especially through the EEG direct marketing. The selective and regulated shutdown of renewable energies in times of negative electricity prices may lead to further cost savings. The utilization of temporary price fluctuations in the spot market and the demand-oriented provision of control power offer high additional revenue potential for flexible controllable technologies such as battery storage, biomethane as well as combined heat and power units. Finally, the determination of the long-term profitability of a virtual power plant still requires a full-scale cost–benefit analysis. For this holistic approach, the model results provide a reliable scientific basis.     

Does FDI influence renewable energy consumption? An analysis of sectoral FDI impact on renewable and non-renewable industrial energy consumption

This study examines the link between foreign direct investment (FDI) and energy demand. FDI is a source of financing that allows businesses to grow. At the same time, FDI can be a source of innovation that promotes energy efficiency. Existing evidence on the impact of aggregate FDI inflows on energy consumption is scarce and inconclusive. In the current study, we disaggregate FDI inflows into mining, manufacturing, total services, and financial services components and examine the impact of these FDI flows on renewable – and non-renewable industrial energy – sources for 74 countries for the period 1985–2012. We employ a Blundell–Bond dynamic panel estimator to control for endogeneity and omitted variable biases in our panels. The results point broadly to an energy consumption-reducing effect with respect to non-renewable sources of energy and an energy consumption-augmenting effects with respect to renewable energy. We find that these effects vary in magnitude and significance by sectoral FDI.     

A novel analysis model of China’s new energy talents

Sustainable development of the new energy industry requires continuous input from professional talents. The new energy industry will continue to grow in importance, and the characteristics of the necessary cross-discipline talents that will promote its development are becoming more and more defined. This article puts forward an analysis model starting with the addition of talents carriers subdivided by specialties, and takes this subdivision as a starting point with the purpose of maximizing talents selection throughout the entire nation. First of all, we define each talent as a specific vector. Then a clustering algorithm is used to perform an analysis and the new energy talents database is created. Finally, we use an algorithm based on graph theory and discrete mathematics to calculate the essential value of the talents vector. This value provides a measurement of the importance of the talents. The current talents structure is analyzed in order to clarify understanding of the present situation so as to enable informed planning of targeted training needs and structural adjustments, thus meeting the sustainable development requirements for the new energy industry in China.     

Do energy efficiency measures really reduce household energy consumption? A difference-in-difference analysis

This study investigates the impact of energy efficiency measures installed through the Carbon Emission Reduction Target (CERT) and the Community Energy Saving Programme (CESP) on domestic gas and total energy consumptions. The recently released National Energy Efficiency Data-Framework (NEED) database is used to examine the changes in domestic gas and total energy consumptions for the dwellings in the sample relative to the changes in gas and total energy consumptions for a comparable control group in the year after installation. The results obtained from this difference-in-difference analysis confirm that observed energy consumption decreases significantly in dwellings following upgrades such as cavity wall insulation, loft insulation and a new efficient boiler. The single most effective energy efficiency measure when installed alone is found to be cavity wall insulation, reducing annual gas consumption by 10.5 % and annual total energy consumption by 8.0 % in the year following installation. Comparing bundles of different energy efficiency measures, we find that dwellings retrofitted with both cavity wall insulation and a new efficient boiler experience the largest reductions in annual gas and total energy consumptions of 13.3 and 13.5 %, respectively. This is followed by a mean annual reduction of 11.9 and 10.5 % in gas and total energy consumptions for dwellings with all three energy efficiency measures installed in the same year. Contrary to expectations, installing cavity wall insulation on its own is found to be more effective in reducing measured energy consumption than combining loft insulation and a new efficient boiler.     

Human capital and energy in economic growth – Evidence from Chinese provincial data

This paper investigates the cointegration and Granger causal relationship between economic growth and total energy consumption as well as disaggregate energy such as coal, coke, crude oil, petroleum products, natural gas and electricity in China for a period of 1995–2014. Different from limited existing provincial studies on China, we use a multivariate framework that considers per capita human capital on top of physical capital in the neoclassical production function and advanced panel econometric methodologies such as CupFM estimators and bootstrapped panel Granger causality tests that allow for cross-sectional dependence and provincial heterogeneity. Our results suggest that human capital exerts 2–3 times the effect of physical capital on the economy and energy also plays a significant role. Furthermore, the rich bootstrap panel Granger causality test results for both the panel and individual provinces provide substantial insights and suggest that it is important to examine the causal effects of both the total energy use and various disaggregate energy consumption before local governments make specific energy and economic policies.     

The impact on chinese economic growth and energy consumption of the Global Financial Crisis: An input–output analysis

The dependence on foreign trade increased sharply in china, and therefore Chinese economy is obviously export-oriented. The Global Financial Crisis will impact the Chinese economic growth violently. Chinese government has recently adopted some effective measures to fight against the Global Financial Crisis. The most important measure is the 4 trillion Yuan ($586 billion) stimulus plan which was announced on November 9, 2008. This paper discusses the influence on energy consumption and economic growth of Global Financial Crisis and the stimulus plan against it by input–output analysis. The results show that the fall of exports caused by the Global Financial Crisis will lead to a decrease of 7.33% in GDP (Gross Domestic Production) and a reduction of 9.21% in energy consumption; the stimulus plan against the Global Financial Crisis will lead to an increase of 4.43% in economic growth and an increase of 1.83% in energy consumption; In the Global Financial Crisis, energy consumption per unit GDP will fall in China.     

Replication and robustness analysis of ‘energy and economic growth in the USA: A multivariate approach’

We replicate Stern (1993), who argues and empirically demonstrates that it is necessary (i) to use quality-adjusted energy use and (ii) to include capital and labor as control variables in order to find Granger causality from energy use to GDP. Though we could not access the original dataset, we can verify the main original inferences using data that are as close as possible to the original. We analyze the robustness of the original findings to an alternative estimation approach, alternative definitions of variables, and alternative model specifications for both the (almost) original time span (1949–1990) and an extended time span (1949–2015). p-values tend to be substantially smaller if energy use is quality adjusted rather than measured by total joules and if capital is included. Including labor has mixed results. These findings tend to largely support Stern's (1993) two main conclusions and emphasize the importance of accounting for changes in the energy mix in time series modeling of the energy-GDP relationship and controlling for other factors of production. We also discuss how the inclusion of the original author in designing the replication study using a pre-analysis plan can help to counterbalance the incentive of replicating authors to disconfirm major findings of the original article to increase the probability of getting published.     

Economic analysis of a combined energy–methanol production plant

The large-scale combined production of methanol and electricity from natural gas is simulated and evaluated from an economic point of view. Both capital and operating costs are considered. The proposed solution is based on steam methane reforming and consists of an once-through methanol synthesis followed by a power plant in which the unreacted gases are burned. Electricity is produced in a combined-cycle plant. It is supposed to add the energy production unit to an already existing methanol plant without decreasing the methanol production. The economic analysis shows that, given the low natural gas price in the Saudi Arabia context, the combined production ensures an increased annual revenue that allows a reasonable payout time for the added energy plant.     

Do urbanization,income, and trade affect electricity consumption across Chinese provinces?

The aim of this paper is to investigate the short- and long-run links among urbanization, output (Gross Domestic Product, GDP), trade openness, and electricity consumption in China, using a rich dataset at the provincial level. The short-run Granger causality analysis discloses a unidirectional causal relationship running from electricity to output and weak feedback effects between trade and urbanization. The long-run Granger causality analysis shows output, urbanization, and trade trigger electricity consumption whereas trade, urbanization, and electricity cause output. The Group Mean and Lambda-Pearson causality tests reveal a large heterogeneity in the long-run effects which suggests there is no “one-size fits all” policy and each region should formulate a differentiated urbanization/growth strategy based on its own characteristics to control electricity utilization.     

China’s energy—challenges and strategies

In this century, China started facing five major challenges in the energy field: energy supply, shortage of liquid fuel, environmental pollution, green house gas (GHG) emission, and energy supply in rural areas. In this paper, the Chinese energy development strategy and general technical scheme (including energy conservation, utilization of coal, alternative fuel and renewable energy) are discussed, and some key scientific problems in the fundamental research of energy are put forward.     

A (negative) replication of ‘The relationship between energy consumption,energy prices,and economic growth: Time series evidence from Asian developing countries’ (Energy Economics, 2000)

This paper replicates Asafu-Adjaye (2000) which employs unit root and cointegration tests together with error correction models to investigate the relationships between energy consumption and income for four energy-dependent Asian developing countries using data from 1971 through 1995. This paper finds not only that the results cannot be replicated, but that the results are not robust to alternative estimation procedures that include the simulation of finite sample critical values and the extension to panel unit root, stationarity and cointegration tests which are necessary to improve upon the power properties of the short time series employed by Asafu-Adjaye (2000). The results from the extension of the analysis to more modern time series techniques disprove the original paper's results, with panel cointegration tests finding that the trivariate system (income, energy consumption, and prices) does not follow a long run relationship for India, Indonesia, Thailand, and the Philippines.     

Impacts of renewable energy regulations on the structure of power generation in China – A critical analysis

China is facing a number of energy-related challenges such as shortage of electricity supply and environmental pollution. The Government recognized the important role the renewable energy plays in the power generation structure. As a result, a series of supporting policies, laws and regulations have been issued to boost the renewable energies in China. This paper provides a critical analysis of the policy framework for the renewable energy in China and its impacts on the power generation structure. The relevant policy documents, including the most recent government work report delivered by Premier Wen Jia-bao during the Third Session of the 11th National People’s Congress (NPC) in March 2010 are analyzed. The patterns of renewable energy developments are found strongly correlated with the promulgation of relevant policies.     

Can foreign direct investment harness energy consumption in China? A time series investigation

This study assesses the long-run relationship and short-run dynamics between foreign direct investment (FDI) and energy consumption in China. Applying the bounds testing approach to annual data from 1982 to 2012, we find that a stable FDI–energy nexus exists in the long run and a 1% increase in FDI reduces energy consumption by 0.21%. However, this study shows a positive association between FDI and energy consumption in the short run, attributing to the dominance of the scale effect. Our results remain robust to different measurements and estimators. It is suggested that the Chinese government shall support the inward FDI in the tertiary and energy sectors and strengthen local absorptive capacities to fully internalize FDI-related knowledge spillovers in energy conservation.     

Process analysis of becoming committed to energy conservation—A path analytic approach

Conserving energy is one of the most important factors in efforts to be independent of oil shocks and embargos. An understanding of the process of transforming an extravagant user of energy into a very prudent user of energy is very essential in planning our strategies to achieve the targeted goal of conservation. This paper deals with the process analysis of that transformation to commit oneself to conserving energy. The technique of path analysis has been used in the present study. The prime factor studied in this paper is “awareness of need for energy conservation” as a promotional factor.     

International cooperation on renewable energy development in China – A critical analysis

The past decades have witnessed the rapid growth of foreign participation in the renewable energy development in China. This is a result of massive energy demand and the Government’s strategy to shadow the role of traditional fossil fuel in the energy mix. This paper critically reviewed the international cooperation in the field of renewable energy with various partners in the new century. The cooperation pattern varies from partner to partner. The results showed that China has benefited from the international cooperation on renewable energy such as accessing to finance and advanced technologies, developing human resources related to renewable energy, and enhancing related policy framework. Major issues associated with the international cooperation are discussed as well.     

International cooperation on renewable energy electricity in China – A critical analysis

Facing the energy crisis and the requirement of green power, China is making great efforts to fulfill the international cooperation on renewable energy electricity aimed at protecting the security of electricity supply and economy development. This paper firstly utilizes the tool of SWOT strategy analysis to make a research on internal and external environment of international cooperation on renewable energy electricity in China. Secondly discusses the current situation and existing problems of international cooperation from four dimensions of strength, weakness, opportunity and threat. Then, gives a propose of four different kinds of international cooperation strategies based on the combination analysis of SWOT matrix. Finally puts forward the detailed implementation strategies of the policy recommendations for international cooperation on renewable energy electricity.     

Pricing and affordability of renewable energy in China – A case study of Shandong Province

The global warming and climate change have put enormous pressure on both governments and industries to re-think their attitudes and behaviours towards sustainability issues. The past decades have witnessed a number of renewable energy developments across the world. Even though these developments are not issue-free, it is generally recognized that the benefits outweigh disadvantages. However, there is an increasing level of concern on the high initial cost associated with the renewable energies, which was claimed as one of critical barriers to the promotion of its further developments. A case study approach is adopted in this study to investigate the pricing and affordability issues associated with the renewable energy in China. The policy framework and related statistics are critically reviewed in order to discuss these issues from different stakeholders’ perspective in Shandong province, China. It is concluded that the affordability remains a critical issue despite numerous efforts have been made by the Chinese Government and Shandong Provincial Government on renewable power pricing. This study offers a useful reference to pricing and affordability of renewable energy.     

Challenges and countermeasures of China’s energy security

China is now a major consumer and importer of energy, and its choices and policies will increasingly affect the rest of the world. This paper analyses the key features of China’s energy policy as it faces the prospect of possible challenges to its energy security given the increasing reliance on fuel imports and the need to transform its energy to meet the requirements of a modern, fast-growing economy. The paper examines whether the current energy mix is appropriate and sustainable, and considers the China’s policymakers new emphasis on energy efficiency, conservation, renewable energy and the shift to natural gas the primary energy source. It examines the internal and external constraints on China’s energy policy and considers the strategic dilemmas arising from China’s increasing involvement in international energy markets. It concludes that both the domestic and international implications of China’s search for energy security will confront policymakers with hard choices that will affect not only energy policy, but also China’s geopolitical grand strategy.