Market fragmentation of energy resource prices and green total factor energy efficiency in China

Abstract

This paper studies the market fragmentation condition of energy resource (such as coal, gasoline, diesel and electricity) prices by using the relative price method and analyzes its impact on China's green total factor energy efficiency. Results shows that: (1) Market fragmentation of China's energy resource prices presents an inverted U-shaped curve in 2004–2009, and then tend to be stable in 2010–2018 with a peak in 2007. The market fragmentation of China's energy resource prices of energy transfers out provinces is more serious than that of energy transfer in provinces. (2) The trend of China's green total factor energy efficiency presents N-shape curve in 2004–2014, and then it tends to be stable around 0.850 in 2015–2018. The green total factor energy efficiency of energy transfers out provinces is lower. Phenomenon of “energy efficiency curse” is significant in China. (3) Impact of market fragmentation of energy resource prices on green total factor energy efficiency also presents an inverted U-shaped curve. And at current stage, reducing the degree of market fragmentation of China's energy resource prices is conducive to the improvement of green total factor energy efficiency. According to the study results, we believe that reduce the market fragmentation of energy resource prices and promote the internal opening of the energy market, promote demand side management measures such as energy performance contracting, reduce the proportion of coal consumption in total energy consumption and improving energy efficiency, increase green total factor energy efficiency of energy transfer out provinces are all effective ways to improve China's green total factor energy efficiency.