The driving forces of China׳s energy use from 1992 to 2010: An empirical study of input–output and structural decomposition analysis

The energy consumption in China has accelerated since the early 2000s, and China became the largest energy consumer in the world by 2010. To examine the driving forces of China׳s energy use, this paper conducts a structural decomposition analysis based on hybrid input–output tables. In addition, we describe the framework of China׳s energy system by using two energy flow charts. The results show that China׳s current energy use is investment-led demand. Between 1992 and 2007, the three main final-demand categories – gross fixed capital formation, household consumption and exports – contributed approximately one-third each to the changes of total energy use in China. Between 2007 and 2010, however, three-quarters of energy consumption changes came from investment activity only. Technological improvement saved approximately five percent of the total energy use annually during the periods of 1992–1997, 1997–2002 and 2007–2010. In the period of 2002–2007, however, its contribution dropped to only three percent p.a. due to the rise of the indirect energy requirement coefficient in the construction sector. These results suggest that adjusting the final demand structure and improving energy efficiency further will meet China׳s energy challenges in the future.     

Energy embodied in the international trade of China: An energy input–output analysis

Growing international trade has not only positively affected the People’s Republic of China’s (China’s) economic development, but also expanded the exportation of energy embodied in goods during their production. This energy flow out will pose risks to China’s rational utilization of natural resources as well as environmental protection. In this paper, we evaluate the energy embodied in goods produced in China during 1992–2005 and use input–output structural decomposition analysis to identify five key factors causing the changes of energy embodied in exports. (Direct primary energy efficiency, primary energy consumption structure, structure of intermediate inputs, structure of exports, and scale of exports.) For the three sub-periods of 1992–1997, 1997–2002, and 2002–2005, results show that China is a net exporter of energy, and the energy embodied in exports tends to increase over time. The expanding total volume of exports and increasing exports of energy-intensive goods tend to enlarge the energy embodied in exports within all three sub-periods, but these driving forces were offset by a considerable improvement of energy efficiency and changes in primary energy consumption structure from 1992 to 2002 and the effects of structure of intermediate input only in the sub-period from 1992 to 1997. From 2002 to 2005, the sharp augmentation of energy embodied in exports was driven by all the five factors. Our research has practical implications for the Chinese economy. Results of this study suggest that the energy embodied in trade should receive special attentions in energy policies design to limit the energy resource out-flow and pollution generation.     

Optimizing production with energy and GHG emission constraints in Greece: An input–output analysis

Under its Kyoto and EU obligations, Greece has committed to a greenhouse gas (GHG) emissions increase of at most 25% compared to 1990 levels, to be achieved during the period 2008–2012. Although this restriction was initially regarded as being realistic, information derived from GHG emissions inventories shows that an increase of approximately 28% has already taken place between 1990 and 2005, highlighting the need for immediate action. This paper explores the reallocation of production in Greece, on a sector-by-sector basis, in order to meet overall demand constraints and GHG emissions targets. We pose a constrained optimization problem, taking into account the Greek environmental input–output matrix for 2005, the amount of utilized energy and pollution reduction options. We examine two scenarios, limiting fluctuations in sectoral production to at most 10% and 15%, respectively, compared to baseline (2005) values. Our results indicate that (i) GHG emissions can be reduced significantly with relatively limited effects on GVP growth rates, and that (ii) greater cutbacks in GHG emissions can be achieved as more flexible production scenarios are allowed.     

The role of hydrogen energy development in the Korean economy: An input–output analysis

Korea has been developing hydrogen energy technology to enhance its energy security. The Hydrogen Energy R&D Center established by the Korean government invested about 100 billion Korean won (KRW) into the development of hydrogen energy technology from 2003 to 2012. This study uses input–output (I–O) analysis, along with the scenario–based exogenous specification method, to investigate the effect of hydrogen energy technology investment on the Korean economy for the period 2020–2040. We focus on two perspectives: (1) the sectoral linkage effect and (2) the sectoral impacts of hydrogen energy supply investments. The overall results reveal that the hydrogen sector can be characterized as intermediate primary production because of its high backward and forward linkage effects. By 2040, total production in the hydrogen sector under two scenarios will be 13,484 and 2979 billion KRW, respectively. This study is a pioneering study into the assessment of the economy–wide effects of Korea's hydrogen energy industries.     

The impact of clean energy investments on the Greek economy: An input–output analysis (2010–2020)

The aim of this paper is twofold: first, to calculate the “green” energy investments, by industrial sector, that Greece would need in order to satisfy a number of energy and environmental targets adopted in the context of the European Commission’s energy and climate change package; and second, to calculate the macro-economic impacts of these “green” investments on production and employment in the Greek economy. To this end, the input–output analysis has been exploited for estimating the direct, indirect and induced macroeconomic effects associated with the implementation of selected energy conservation measures, the promotion of renewable energy technologies, etc. Our findings show that the required investments would reach the amount of €47.9 billion, over the period 2010–2020. These investments will result in an average annual increase of the national product by €9.4 billion, creating simultaneously 108,000 full-time equivalent jobs for the entire period under consideration. The employment generated per €1 million investment is relatively higher in energy saving projects in buildings and transport in comparison with the development of RES in power generation sector.     

Multi-regional input–output model and ecological network analysis for regional embodied energy accounting in China

Chinese regions frequently exchange materials, but regional differences in economic development create unbalanced flows of these resources. In this study, we examined energy by assessing embodied energy consumption to describe the energy-flow structure in China's seven regions. Based on multi-regional monetary input–output tables and energy statistical yearbooks for Chinese provinces in 2002 and 2007, we accounted for both direct and indirect energy consumption, respectively, and the integral input and output of the provinces. Most integral inputs of energy flowed from north to south or from east to west, whereas integral output flows were mainly from northeast to southwest. This differed from the direct flows, which were predominantly from north to south and west to east. This demonstrates the importance of calculating both direct and indirect energy flows. Analysis of the distance and direction traveled by the energy consumption centers of gravity showed that the centers for embodied energy consumption and inputs moved southeast because of the movements of the centers of the Eastern region. However, the center for outputs moved northeast because the movement of the Central region. These analyses provide a basis for identifying how regional economic development policies influence the embodied energy consumption and its flows among regions.     

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.     

Is there a role for biofuels in promoting energy self sufficiency and security? A CGE analysis of biofuel policy in Thailand

Given the rising price of crude oil, some developing countries including Thailand are looking towards developing their domestic renewable energy resources, in particular biofuels. However, there are concerns about the possible adverse effects such a policy strategy would have on key variables such as sectoral output, land allocation and the effects of prices, particularly food prices. This study develops a computable general equilibrium (CGE) model of the Thailand economy that features enhancements of the energy sector and uses it to analyze the government’s recent renewable energy development plan. This plan aims to increase domestic energy use from renewable sources to replace fossil fuel imports. The study simulated specific policies contained in the plan. Among other things, we found that promoting biofuel use causes a rapid increase in the price of biofuel and biofuel feedstock in the short-run, whereas these prices only increase slightly in the long-run due to more elastic supplies. The prices of food and other products marginally increase, implying that food security is not undermined by the policy. On the basis of the findings, the study recommends a review of some of the targets because they were found to be rather high, and a phasing in of others.     

What lessons have been learned in reforming the Renewables Obligation? An analysis of internal and external failures in UK renewable energy policy

Despite operating a delivery programme for RES-E since 1990, UK targets and policy goals have not been achieved. In response, the Government reformed the RO. This article re-examines UK renewable energy policy by analysing the internal and external failures of the various mechanisms to determine if Government has learnt from previous experience in reforming the RO. Government did not learn from their own actions during the NFFO/RO transition, evidenced by high-levels of similarity in internal/external failures. The reformed-RO is expected to significantly increase deployment, has provided a ‘renewables package’ by comprehensively addressing both internal/external failures but major internal failures (price/financial risk) still remain, resulting in contiguous failures over two decades and two mechanism changes (NFFO, RO, RO/reformed-RO). Success will again be heavily dependent on a select few technologies and new/untested measures to combat external failures. Mechanism-extension to 2037 is probably the single most important factor underlying potential deployment increases. However, introducing a FIT-like system via the sheer number of ‘bolt-on’ reforms to counter policy failures indicates loss of direction and clarity. Overall, although Government appears to have learnt some of its lessons from the past two-decades, significant doubt remains whether renewable energy policy objectives will be met via the latest mechanism change.