The impacts of removing energy subsidies on economy-wide rebound effects in China: An input-output analysis |
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| Affiliation: | 1. College of Mathematics & Computer Science, Hunan Normal University, Changsha, Hunan 410081, China;2. Institute of Finance and Economics Research, School of Urban and Regional Science, Shanghai University of Finance and Economics, Shanghai 200433, China;1. Collaborative Innovation Center for Energy Economics and Energy Policy, China Institute for Studies in Energy Policy, Xiamen University, Fujian, 361005, PR China;2. Newhuadu Business School, Minjiang University, Fuzhou, 350108, PR China;3. The School of Economics, China Center for Energy Economics Research, Xiamen University, Xiamen, Fujian, 361005, PR China;1. School of Management, National Institute of Technology Karnataka, Surathkal, India;2. Department of Economics, Central University of Kerala, Kerala, India;1. Brook Byers Institute for Sustainable Systems and School of Civil and Environmental Engineering, Georgia Institute of Technology, 828 West Peachtree St., Suite 320, Atlanta, GA 30332, USA;2. School of Economics, Georgia Institute of Technology, 221 Bobby Dodd Way, Atlanta, GA 30332, USA;1. Universidad de Sevilla, Avda. Ramón y Cajal, 1, Postal Code 41018 Sevilla, Spain;2. Universidad Autónoma de Chile, Av. Pedro de Valdivia 425, Providencia, Santiago 758-0150, Chile;1. School of Management and Economics, Beijing Institute of Technology, 100081 Beijing, China;2. Center for Energy & Environmental Policy Research, Beijing Institute of Technology, 100081 Beijing, China;3. School of Economics and Management, Beijing Institute of Petrochemical Technology, 102617 Beijing, China;4. Collaborative Innovation Centre of Electric Vehicles in Beijing, 100081 Beijing, China |
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| Abstract: | Facing with the increasing contradiction of economic growth, energy scarcity and environmental deterioration, energy conservation and emissions abatement have been ambitious targets for the Chinese government. Improving energy efficiency through technological advancement is a primary measure to achieve these targets. However, the existence of energy rebound effects may completely or partially offset energy savings associated with technological advancement. This paper adopted a modified input-output model to estimate the economy-wide energy rebound effects across China's economic sectors with the consideration of energy subsidies. The empirical results show that the aggregate rebound effect of China is about 1.9% in 2007–2010, thus technological advancement significantly restrains energy consumption increasing. Removing energy subsidies will cause the aggregate rebound effect declines to 1.53%. Specifically, removing subsidies for coal and nature gas can reduce the rebound effects signifcantly, while removing the subsidies for oil products has a small impact on rebound effect. The existence of rebound effects implies that technological advancement should be cooperated with energy price reform so as to achieve the energy saving target. In addition, the government should consider the diversity of economic sectors and energy types when design the reform schedule. |
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| Keywords: | Rebound effects Input-output model Energy subsidies China |
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