Limits of technological progress in controlling energy consumption: Evidence from the energy rebound effects across China's industrial sector

Abstract

As issues concerning the environment and energy security have become extremely serious, investment in technological research and the development of China's industrial sector has been markedly increasing in an effort to control energy consumption. Energy rebound effects may offset the effects of the energy saved as a result of technological advancement. The present study assessed 30 provinces in China from 2001 to 2017 and analysed the relationship between the heterogeneous technological progress rates and energy productivity of China's industrial sector. This study also assesses the energy rebound effect of China's industrial sector using elasticity analysis. The energy rebound effect in China's industrial sector was significant. Furthermore, the energy rebound effect serves as a regional characteristic of progressive growth from the eastern, central and western regions in China. Moreover, an increasing variation with time was observed in the energy rebound effect of most provinces, indicating that China's industrial development is still ridden with the rough developmental pattern in the sample interval. Finally, according to the characteristics of the energy rebound effect of China's industrial sector, possible explanations and related policy recommendations have been provided from the perspective of energy market reforms and environmental regulations.