Energy’s Shadow Price and Energy Efficiency in China: A Non-Parametric Input Distance Function Analysis

Energies

Pengfei Sheng²  Jun Yang¹  Joshua D. Shackman³ 

[1]School of Economics and Business Administration, Chongqing University, Shanzheng Street 174, Shapingba District, Chongqing 400044, China

[2]School of Economics, Henan University, North Part of Jinming Street, Jinming District, Kaifeng 475004, China

[3] E-Mail:

[4]College of Business Administration, Trident University International, Cypress, CA 90630, USA

[5] E-Mail:

关键词: energy;    shadow price;    energy efficiency;   

DOI  :  10.3390/en8031975

来源: mdpi

【 摘 要 】

This paper extends prior research on energy inefficiency in China by utilizing a unique shadow price framework allocation in 30 Chinese provinces. We estimate the shadow price for energy input using the framework of production, and use the ratio of the shadow price to the market price to describe energy utilization. Using Chinese provincial-level data from 1998 to 2011, the results of the analysis reveal that shadow prices in China have grown rapidly during the sample period, which signifies that China has improved its performance in energy utilization since 1998. However, there are eighteen provinces whose shadow prices are lower than market prices. This result suggests that energy utilization is at a low level in these provinces and can be improved by a reallocation of inputs.

【 授权许可】

CC BY   
© 2015 by the authors; licensee MDPI, Basel, Switzerland.