Template-Type: ReDIF-Paper 1.0
Author-Name:  Hengyun Ma 
Author-X-Name-First: Hengyun
Author-X-Name-Last: Ma
Author-Email:  hengyun.ma@canterbury.ac.nz
Author-Workplace-Name: University of Canterbury
Author-Name:  Les Oxley
Author-X-Name-First: Les 
Author-X-Name-Last: Oxley
Author-Email: les.oxley@canterbury.ac.nz
Author-Workplace-Name: University of Canterbury
Author-Name:  John Gibson
Author-X-Name-First: John 
Author-X-Name-Last: Gibson 
Author-Email: jkgibson@waikato.ac.nz  
Author-Workplace-Name: Motu Economic and Public Policy Research and The University of Waikato
Author-Name:  Bongguen Kim
Author-X-Name-First: Bongguen 
Author-X-Name-Last: Kim 
Author-Email: bgkim@waikato.ac.nz  
Author-Workplace-Name: The University of Waikato
Title: China's Energy Economy: Technical Change, Factor Demand and Interfactor/Interfuel Substitution 
Abstract:  With its rapid economic growth, China's primary energy consumption has exceeded domestic energy production since 1994, leading to a substantial expansion in energy imports, particularly of oil. China's energy demand has an increasingly significant impact on global energy markets. In this paper Allen partial elasticities of factor and energy substitution, and price elasticities of energy demand, are calculated for China using a two-stage translog cost function approach. The results suggest that energy is substitutable with both capital and labour. Coal is significantly substitutable with electricity and complementary with diesel while gasoline and electricity are substitutable with diesel. China's energy intensity is increasing during the study period (1995-2004) and the major driver appears to be due to the increased use of energy intensive technology.
Length:  29 pages
Creation-Date:  2009-02
File-URL: https://motu-www.motu.org.nz/wpapers/09_02.pdf
Number: 09_02
Classification-JEL: D24, O33, Q41
Keywords: China, Interfactor/interfuel substitution, Technology, Energy intensity decomposition
Handle: RePEc:mtu:wpaper:09_02