How does market-oriented reform influence the rebound effect of China’s mining industry?

Abstract

Carbon neutrality is the future development direction of China. Achieving the goal of carbon neutrality requires the combined efforts of all industries, especially heavy industries. As one of the heavy industries, the mining sector contributes significantly to China’s national economic development. This paper calculates China’s mining sector’s rebound effect and explores the impact of market-oriented reform on its rebound effect. We use the Shephard energy distance function to measure energy efficiency and analyze the effect of marketization on the rebound effect with the threshold model. Based on our results, the mining sector’s average rebound effect is 46.4%. Moreover, with the increase in the decision-making flexibility of mining enterprises, the rebound effect presents an upward trend. We conclude by urging policy-makers to implement energy price reforms and promote energy consumption permits