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    China's energy economy: Technical change, factor demand and interfactor/interfuel substitution

    Access Status
    Fulltext not available
    Authors
    Ma, H.
    Oxley, Leslie
    Gibson, J.
    Kim, B.
    Date
    2008
    Type
    Journal Article
    
    Metadata
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    Citation
    Ma, H. and Oxley, L. and Gibson, J. and Kim, B. 2008. China's energy economy: Technical change, factor demand and interfactor/interfuel substitution. Energy Economics. 30 (5): pp. 2167-2183.
    Source Title
    Energy Economics
    DOI
    10.1016/j.eneco.2008.01.010
    ISSN
    0140-9883
    School
    School of Economics and Finance
    URI
    http://hdl.handle.net/20.500.11937/18575
    Collection
    • Curtin Research Publications
    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 labor. 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. © 2008 Elsevier B.V. All rights reserved.

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