Sectoral comparison of electricity-saving potentials in China: An analysis based on provincial input–output tables

Abstract

China's electricity generation is mainly dependent on fossil fuel. Promoting electricity conservation in different sectors and regions plays a vital role in reducing China's energy-related CO2 emissions and other pollutants. This paper contributes to identify the sectors and economic regions with larger electricity-saving potential and make policy recommendations for promoting electricity conservation. Two indicators, namely TEC (technical elasticity coefficient) and PSC (price sensitivity coefficient), are constructed within an input–output analysis framework to measure the electricity-saving potential. The proposed indicators are applied to analyze the electricity-saving potentials of 20 sectors and 30 provinces in China. We also use EFC (electricity forward correlation coefficient) to examine the relationship between power consumption and electricity-saving potential. Our empirical results show that Mechanical industry, Construction industry and Chemical industry have the largest electricity-saving potential. Meanwhile, the east region of China also shows greater electricity-saving potential. It is suggested that Chinese government adopt pricing regulation and technology innovation policies jointly to promote China's energy conservation. Some important policy implications according to our empirical study are also proposed.