Abstract
The continuous entry of new firms and exit of old ones might have substantial effects on productivity of energy supply. Since China is the world’s largest energy producer, productivity of energy supply in China is a significant issue, which affects sustainability. As a technical application, this paper investigates the productivity and dynamic changes of Chinese coal mining firms. We find that the total factor productivity (TFP) growth of coal supply in China is largely lagging behind the growth rate of coal production. The entry and exit of non-state-owned enterprise (non-SOE) partially provide explanation for the dynamic change of aggregate TFP. Specifically, non-state owned entrants induced by the coal price boom after 2003, which had negative effects on TFP of energy supply, while the exit of non-SOEs had positive effects. Furthermore, there is regional heterogeneity concerning the effects of entry and exit on energy supply productivity. More entrants induced by coal price boom are concentrated in non-main production region (non-MPR), while more exits are located in MPR due to the government’s enforcement. This provides explanation for the phenomena that productivity of energy supply in MPR gradually surpasses that in non-MPR. We also anticipate our paper to enhance understanding on the energy supply-side, which might further help us make informed decisions on energy planning and environmental policies.
Highlights
China has become the largest energy supplier in the world since 2007
The purpose of this paper is to measure and decompose the productivity of energy supply in China, we only focus on energy supply firms
The empirical analysis is restricted to the coal mining sector for the following reasons: First, as we have shown in Section 1, coal accounts for more than 70% of China’s energy supply, coal mining firms are representative for China’s energy suppliers
Summary
China has become the largest energy supplier in the world since 2007. In the few decades following the opening up and reform in 1978, China’s size-driven economic growth resulted in a large increment in energy demand. In 2017, China consumed 3132 million tons of oil equivalent (Mtoe) of primary energy, accounting for ~23% of global total energy demand. Corresponding to the huge energy demand, China produced 2581 Mtoe of primary energy, which means that ~18%. Facts on Productivity of Energy Supply: the Role of Entering and Exiting. A simplified and intuitive measureofofEnergy productivity is labor which is measured by the ratio of Aoutput to the of workers [3]. Figure compares labor productivity simplified and number intuitive measure of productivity is labor productivity, which is measuredof bythe coal ratio of in output to the workers [3].productivity. Inof2014, labor of China’s coal mining industry was mining industry in China and US.
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