Sectoral Energy Intensity Research Articles

Partner heterogeneity and driving factors of China's export embodied energy intensity

Although China's energy consumption is very high, foreign demand has become crucial factor affecting China's energy consumption due to exports. A detailed analysis of the embodied energy intensity of China's exports from the demand side could provide valuable insight into promoting China's energy-saving development. This paper explores disparities in the embodied energy intensity of China's exports to different trading partners and the energy supply structure behind these exports. Furthermore, it explores the driving factors of export embodied energy intensity using multiplicative structural decomposition analysis. The results show that China's export embodied energy intensity to developing countries, such as India, is higher than that of European and American countries; however, a convergence trend has emerged over time. Regarding the driving factors influencing changes in export embodied energy intensity over time, the sectoral energy intensity effect plays a pivotal role in promoting its decline, while the production structure and export structure effects change from inhibition to weak promotion. The adjustment of export structure has significant potential for reducing China's export embodied energy intensity, especially in emerging economies. Finally, this paper proposes policy directions for collaborative opening up, energy saving, and emission reduction goals.

Identification of carbon responsibility factors based on energy consumption from 2005 to 2020 in China

In the process of rapid economic development, the relationship between energy consumption and economic development is close and the coupling relationship is complex. The study proposes a method for the assessment of integrated energy consumption factors. In particular, production and consumption driving factors are expressed in relation to the growth of primary energy consumption responsibility in the energy supply chain system. Specifically, based on previous research, the study builds a LMDI decomposition model based on the primary energy consumption responsibility - embodied energy (PECREE) formula. By analyzing the impact of changes in the final commodity quantity, value-added allocation factor, energy intensity, end-use energy consumption structure and primary energy consumption responsibility conversion factor on primary energy consumption responsibility, the study systematically reveals the linkage relationship between product production and consumption on energy consumption changes, and reveals the related driving mechanism of primary energy consumption responsibility growth. We choose China's energy supply system from 2005 to 2020 as a case study, focusing on the impact of changes in economic sectors on primary energy consumption responsibility, and provide a supplementary explanation from the commodity consumption side. The results show that the change of final use quantity is the most important factor causing the increase of primary energy consumption responsibility, but the impact is decreasing year by year. The impact of energy intensity change on primary energy consumption responsibility is mainly dominated by economic sectors with high energy consumption and high energy intensity. The impact of value-added allocation factor requires systematic consideration of energy intensity of economic sectors. The increase of the proportion of electricity in the end-use energy consumption structure of the economic sector promotes the growth of its primary energy consumption responsibility. The reduction of primary energy consumption responsibility conversion factor for electricity is one of the factors that inhibits the growth of primary energy consumption responsibility. Finally, we believe that while meeting the needs of social development and production and life of the people, China is already on the road of adjustment and transformation of its industrial structure and energy structure, and will continue to make progress in the future.

Exploring the relationship between economic diversification and energy-related CO2 emissions in a petroleum-producing country

Purpose This study aims to quantify sectoral energy and carbon intensity, revisit the validity of the Environmental Kuznets Curve (EKC) and explore the relationship between economic diversification and CO2 emissions in Bahrain. Design/methodology/approach Three stages were followed to understand the linkages between sectoral economic growth, energy consumption and CO2 emissions in Bahrain. Sectoral energy and carbon intensity were calculated, time series data trends were analyzed and two econometric models were built and analyzed using the autoregressive distributed lag method and time series data for the period 1980–2019. Findings The results of the analysis suggest that energy and carbon intensity in Bahrain’s industrial sector is higher than those of its services and agricultural sectors. The EKC was found to be invalid for Bahrain, where economic growth is still coupled with CO2 emissions. Whereas CO2 emissions have increased with growth in the manufacturing, and real estate subsectors, the emissions have decreased with growth in the hospitability, transportation and communications subsectors. These results indicate that economic diversification, specifically of the services sector, is aligned with Bahrain’s carbon neutrality target. However, less energy-intensive industries, such as recycling-based industries, are needed to counter the environmental impacts of economic growth. Originality/value The impacts of economic diversification on energy consumption and CO2 emissions in the Gulf Cooperation Council petroleum countries have rarely been explored. Findings from this study contribute to informing economic and environment-related policymaking in Bahrain.

The effect of industrial synergy and division on energy intensity: From the perspective of industrial chain

The essence of industrial chain structure optimization is to strengthen the synergy and division ability among sectors. It is a crucial factor in reducing energy intensity and achieving carbon neutrality goals. This paper completed the China's non-competitive input-output table from 2000 to 2020, constructed industrial synergy and division index using structural path analysis method and examined its development trend. Combining with a two-way fixed effects model, we explored the influence of industrial synergy and division on energy intensity. The research found that China's industrial synergy and division development level shows an upward trend. The proportion of the low-layer industrial chain decreases, and the peak contribution rate moves to the high-layer industrial chain. Secondly, industrial synergy and division significantly reduces sectoral energy intensity, the results are robust after endogeneity test. Finally, heterogeneity analysis showed that industrial synergy and division can reduce the energy consumption intensity of all sectors, and it is more obvious for sectors with high energy dependence. This research can provide targeted policy suggestions for China to optimize its industrial structure. It also has a reference significance for other countries.

The impact and transmission mechanism of green credit policy on energy efficiency: new evidence from China

Green credit policy is the primary means for financial institutions to fulfill their environmental responsibilities. It is an issue worthy of attention whether green credit policy can achieve the effect of energy conservation, efficiency improvement, pollution reduction, and carbon reduction. This study uses the difference-in-difference method to test the impact of green credit policy on energy efficiency. The results show that green credit policy led to a significant decrease in energy intensity of green credit-restricted sectors while impeding the advancement of green total factor energy efficiency. The heterogeneity results show that the energy efficiency of large-scale, light textile manufacturing, resource processing industries, and clean industries are more significantly affected. Green credit policy can achieve energy conservation and has a linkage effect on pollution and carbon reduction. Although the constraint effect of green credit policy has effectively suppressed energy intensity, it also leads some industries to face a vicious cycle of "enhanced financing constraints-weakened innovation impetus," which in turn makes it challenging to improve green total factor energy efficiency. The above findings confirm the effectiveness of green credit policy in energy conservation and emission reduction. Also, they indicate the necessity of further improvement of the green financial policy system.

Financial literacy and household energy efficiency: An analysis of credit market and supply chain

We use survey data from China households to investigate the impact of financial literacy on household energy efficiency. We aggregate the household energy use and carbon emissions after calculating the energy and carbon intensity of the related sectors of household expenditure. We show that households with high financial literacy perform higher energy use and carbon emissions but lower energy efficiency. Furthermore, the credit market and supply chain have statistically positive effects on energy use and carbon emissions. The results suggest that the government should take more decisive action to reduce carbon emissions, not rely on households voluntarily.

Factors driving aggregate service sector energy intensities in Asia and Eastern Europe: A LMDI analysis

The economywide energy intensities in the service sectors are declining in many countries worldwide. We identify the drivers of the declining trends by employing the Logarithmic Mean Divisia Index (LMDI) on annual data from 16 countries in the Asia and Eastern Europe for the 2000–2014 period. We find that the change in fuel mix has little contribution to driving the economywide energy intensity of the service sector down during the study horizon. Instead, the change in energy intensity contributes to a decrease in economywide energy intensity of service sectors in most countries except the Czech Republic, Estonia, Latvia, and Turkey. Moreover, since energy intensity is inseparable from economic development, changes in economic structure are an essential determinant of the economywide energy intensity of service sectors. This work also analyzes the sectoral attribution and energy feedstocks attribution of economywide energy intensity of the service sectors.

The impact of access to credit on energy efficiency

This paper proposes a brand-new measure of energy efficiency at household level and explores how it is affected by access to credit. We calculate the energy and carbon intensity of the related sectors, which experience a substantial decline from 2005 to 2019. Although there is still high inequality in energy use and carbon emissions among Chinese households, the energy efficiency appears to be improved in long run. Our research further maps the relationship between financial market and energy. The results suggest that broadened access to credit encourages households to improve energy efficiency, with higher energy use and carbon emission.

Energy equity as a major driver of energy intensity in South Asia

Energy efficiency is promoted worldwide as an important measure to address growing energy demand and reduce energy intensity of the gross domestic product and emissions of greenhouse gases and air pollutants. We analyzed aggregate and sectoral energy intensities in Bangladesh, India, Nepal, Pakistan, and Sri Lanka during 2000–2017 and decomposed the aggregate energy intensity into its four key determinants. Past energy intensity analysis methods have often used changes in factors related to only energy and economic structure and ignored energy equity factors. We show that energy equity factors (access to electricity and per capita electricity consumption) strongly influence the energy intensity of a country/region. In countries with less than 100% access to electricity, changes in energy equity factors negatively affected energy intensity while changes in energy structure and income level improved it. Energy equity is an important consideration for assessment, development and implementation of sustainable energy efficiency policies of a country.

Contributors and drivers of Chinese energy use and intensity from regional and demand perspectives, 2012-2015-2017

China has been experiencing significant energy use transition accompanied by emphasizing on dual control of energy (e.g. energy consumption and energy intensity). Energy use was expected to present obvious spatial characteristics and differentiated contributions across regions. A systematic energy analysis was carried out to 31 regions (including Tibet) in China for investigating the contributors to national achievements and key drivers of regional energy use. With the help of multi-region input-output model (MRIO) and structural decomposition analysis (SDA) techniques, we found that the aggregate energy use in China has been advanced effectively with a declined increasing total energy consumption and accelerated decreasing total aggregate energy intensity. From regional perspective, Eastern region contributed the most characterized by greater total embodied energy consumption and lower aggregate embodied energy intensity, such as Shandong, Hebei and Jiangsu. From demand perspective, regional energy use has been dramatically determined by investment, consumption and exports in sequence. The changes in regional energy use have been tremendously influenced by the sectoral energy intensity and domestic production structure with differentiated performance across regions. According to additive and multiplicative SDA results, two different regional energy conservation paths, i.e. efficiency- and structure-oriented improvements, were identified for China.

Changes in Energy Consumption and Energy Intensity in EU Countries as a Result of the COVID-19 Pandemic by Sector and Area Economy

Energy is vital for the proper functioning of the various sectors of the economy and social life. During the pandemic, there have been some changes in these aspects that need to be investigated. The main objective of this article is to identify the direction of change caused by the COVID-19 pandemic in energy consumption and energy intensity in sectors and economic areas in EU countries. The specific objectives are to identify the importance of energy consumption in sectors and areas of the economy in individual EU countries; to determine the dynamics of change and variability during the pandemic in energy consumption in individual sectors and areas of the economy in EU countries, especially during the COVID-19 pandemic; to determine the changes in energy intensity of individual economic sectors and the differences in energy intensity between individual EU countries, including during the COVID-19 pandemic. Using a purposive selection method, all 27 EU Member States were selected for the study on 31 December 2020. The analysed period covered the years 2005–2020. The sources of material were literature and data from Eurostat. Descriptive, tabular and graphical methods, dynamic indicators with a fixed base and variable base, Gini coefficient, coefficient of variation, Pearson’s linear correlation coefficient, and multi-criteria analysis were used for analysis and presentation. It was found that the structure of energy consumption had remained unchanged for several years, with transport, industry and households dominating. There were no significant differences between countries. The COVID-19 pandemic reduced energy consumption in all sectors of the economy, the largest in transport and services and the smaller in industry. At the same time, household energy consumption increased. As a result of the pandemic, there was an increase in energy intensity in all sectors of the economy, the largest in industry. Western European countries had a lower energy intensity of the economy than Central and Eastern European countries. There was little change over several years. Countries generally maintained their ranking. The pandemic did not change anything in this respect, meaning that it had a similar impact on individual EU countries.

How will Chinese cities reduce their carbon emissions? Evidence from spatial differences.

Urban regions are the dominant carbon emitter in China. Although the role of urban regions is a crucial concern in peaking China's carbon emission in 2030 or earlier, there were little focus set to the driving factors among urban regions from spatial differences. To excavate more effective abatement strategies to China's cities, this paper improved the environmental Leontief and Ghosh input-output models and structural decomposition analysis to investigate the driving factors of the spatial differences in the CO2 emissions among four municipalities. The results released that the increasing enlarged spatial differences of CO2 emission were significant. In general, the spatial differences were dramatically influenced by the per capita final demand level from the demand perspective and the sectoral energy intensity from the supply perspective. In particular, the structural factors presented an increasingly critical role. Inspired by the results, the city level "common but distinct" policy implications were formulated.

Heat Stressed State of Piston Engine Parts

Modern foreign and domestic scientific literature has extensive information on the creation of a diesel engine with heat-insulated parts. Most of these studies are devoted to the development of technology for obtaining heat-insulating composite materials, methods for modeling thermal processes in internal combustion engines and reducing fuel consumption. Solving the problem of a diesel engine by reducing unproductive costs of thermal energy in the thermodynamic cycle and improving the performance of a diesel engine with heat-insulated parts based on the organization of the working process at high wall temperatures has not been sufficiently studied to date, which led to the choice of the topic of this study. In the Resolution of the President of the Republic of Uzbekistan (No. PP-4422 dated 22 August 2019) – “On Accelerated Measures to Improve Energy Efficiency in Economic and Social Sectors, the Introduction of Energy-Saving Technologies and the Development of Renewable Energy Sources”, The President of the Republic of Uzbekistan Sh.M. Mirziyoyev noted that in order to comprehensively organize work to improve energy efficiency, widely introduce energy-saving technologies and renewable energy sources, radically reduce the energy intensity of economic and social sectors by involving available resources and untapped potential, taking into account advanced foreign experience, and also ensuring the rational and efficient use of fuel and energy resources. [1]. One of the most important concepts for a deep restructuring of the economic mechanism of the Republic of Uzbekistan is the creation of an integral, efficient and flexible system of economic management and the implementation on this basis of a program to improve the technical level and quality of machines.

Emission and sectoral energy intensity: a variance decomposition analysis

PurposeIn the backdrop of growing global concern on escalating CO2 emission leading to climate disorder and controversy between economic growth and environment, this study undertakes a decomposition analysis of the top 20 emitters of the world during 1992–2016 with two objectives: to identify the relative contribution of the major driving factors in CO2 emission and to comprehend the role and performance of sectoral energy consumption pattern in changing the emission level.Design/methodology/approachThe paper uses variance analysis method to perform two stage decomposition: first, it decomposes emission into the major driving factors, and, secondly, it also decomposes fossil fuel intensity of different sectors into fuel mix and energy intensity effects, which are new in the literature.FindingsThe results indicate that aggressive pursuit for economic growth, particularly by developing countries, is the major reason behind unprecedented emission growth, with income effect, fossil fuel intensity effect and population effect having substantial roles. Considerable decline in dependence on fossil fuel, coupled with rising emissions, signifies that emission intensity is still to be harnessed. Sectoral decomposition shows that while fossil fuel intensity has declined in residential sector, it has remarkably shot up in industry, transport and commercial sectors. On the other hand, sectoral energy intensity has declined, particularly due to favourable performances of transport and commercial sectors.Research limitations/implicationsThe detailed country-wise sectoral analysis identifies the sectors with favourable contribution in curtailing emission and lends a direction to other countries for policy making.Originality/valueThis study contributes by incorporating multi-country sectoral segregation in decomposition analysis. It focuses not only on energy intensity, but on the effect of energy substitution in each sector as well. It identifies the sectors that have lowered their dependence on fossil fuel to highlight that emission can effectively be dealt with through a prudent choice of fuel mix.

Inter-fuel substitution and decomposition analysis of energy intensity: Empirical evidence from Iran

Iran economy has high energy intensity and CO2 emission compared to other peer countries. This study adopts the Logarithmic Mean Divisia Index (LMDI-I) method to decompose the total energy intensity changes Δ(E/GDP) of the Iranian economy by considering inter-fuel substitution impacts of the economic sectors over the period of 2004–2017. Results show that the total energy intensity of Iran's economy increased by 43.59 barrels of oil equivalent to IRR 1000 (Iranian Rial at a constant price in 2011). Furthermore, results indicate that while inter-sector structural change, per capita GDP impact, and sectoral energy intensity impact lead to an increase in total energy intensity, household energy intensity impact leads to a decrease in total energy intensity during the research period. Extended findings from decomposition analysis demonstrate that household, services, and agriculture sectors have decreasing impact, while industry, power plant and transportation sectors have increasing impact on Δ(E⁄GDP). In addition, removing the consumption of kerosene in household sector and reducing its share in most economic sectors has caused decline, whereas high consumption of fuel oil, gasoline and gasoil compared to other energy carriers, has led to an increase in total energy intensity. As such, it is concluded that substituting various types of fuels in economic sectors couldn't reduce energy intensity. Besides, serious revisions are needed in the energy policies and energy efficiency programs. It is recommended that non-price policies along with price-based energy policies be implemented to reduce energy intensity and CO2 emission.

Data and energy efficiency indicators of freight transport sector in Mexico

Globally, the transport sector represents more than a quarter of the total energy consumed. In Mexico, energy consumption in the road transport subsector alone represented 40.9% of the final energy required nationwide. The national goal of energy efficiency expressed in terms of energy intensity for the transport, industry, buildings, and agricultural sectors, indicates that energy intensity should decrease 1.9% per year during the 2016–2030 period. Besides, the primary strategy proposed by the government to optimize the energy consumption of freight transportation is energy efficiency. This proposal estimates the energy efficiency indicators to make a reliable assessment of the situation of the impact of energy efficiency on demand. If the goal of reducing the transport sector energy intensity is met, the intensity of freight transportation should be reduced from 0.7434 MJ / dollar in 2017 to 0.5793 MJ / dollar by 2030, which represents a reduction of 22.1%. It could represent a reduction in carbon emissions of 33.1% in the same period.

The inward FDI - Energy intensity nexus in OECD countries: A sectoral R&D threshold analysis

Over recent years, concerns about the need to reduce energy intensity have intensified due to the increasing volume of greenhouse gas emissions that has amplified problems related to global climate change and environmental pollution. At the same time, foreign direct investment (FDI) has been found to have a prominent effect on energy intensity. This study empirically examines the relationship between sectoral FDI inflows and energy intensity by investigating the possibility of a threshold effect of research and development (R&D) technological absorptive capacity. Our sample covers 34 OECD countries over 1987–2013, with FDI and R&D data disaggregated at three sectoral levels (primary, secondary and tertiary sectors), an analysis that is absent in existing literature. We uncover a significant R&D input threshold in the relationship between FDI inflows to non-primary sectors and energy intensity. FDI inflows to non-primary sectors increase the level of energy intensity when the level of sectoral R&D is below the threshold, but such effect decreases when the sectoral R&D level is above the threshold point. Important implications flow from our findings with respect to the type of FDI and the level of indigenous R&D to be encouraged (or discouraged) by policymakers to effectively reduce energy intensity.

Driving forces of CO2 emissions and energy intensity in Colombia

We analyze the driving factors of CO2 emissions and energy intensity in Colombia during 1971–2017 and 1975–2016, respectively. We apply a factorial additive decomposition for CO2 emissions, starting from the Kaya identity, using the logarithmic mean Divisia index method. The increase in emissions is mainly explained by the affluence and population effects, but is partially offset by the energy intensity effect and, to a lesser extent, the carbonization effect. We then analyze the driving factors of energy intensity with a multiplicative decomposition. We first transform final energy into its total primary energy requirements. The decrease in energy intensity is mainly due to the reduction in sectoral energy intensity and, to a lesser extent, to structural change. We analyze the contribution to both effects of the different sectors considered and relate them with the structural changes of the Colombian economy and the policies applied. The most important contributions to sectoral energy intensity reduction are the efficiency improvements in the transport and industry sectors, while the decrease in the share of industry is the most relevant component explaining the reduction of the structural change effect. The results provide useful information for the analysis and design of energy and environmental policies.

System dynamics simulation of regional water supply and demand using a food-energy-water nexus approach: Application to Qazvin Plain, Iran

Understanding the complexity and feedbacks among food, energy, and water (FEW) systems is key to making informed decisions about sustainable development. This paper presents qualitative representation and quantitative system dynamics simulation of the water resources system in the Qazvin Plain, Iran, taking into account the energy intensity of water supply and interconnected water use sectors (e.g., urban, industrial, and agricultural). Qazvin Plain faces water resources challenges that are common to arid/semi-arid areas, including frequent droughts, declining surface water and groundwater, and increased urban and agricultural water demand. A system dynamics model is developed using historical data (2006–2016) to investigate the effects of anticipated dynamics of integrated water and energy sectors in the next two decades. The results of policy scenarios (2020–2039) demonstrate that the continuation of the existing management policies will cause severe damage to the water and energy sectors, pushing the system towards water resources limits to growth. An annual groundwater table decline of nearly 1 m is anticipated, indicating significant overshoot of the plain's natural recharge capacity, which may lead to the depletion of recoverable groundwater in the plain within the next three decades. The groundwater table decline will cause energy consumption of water supply to increase by about 32% (i.e., 380 GWh) to maintain irrigated agriculture. It is critical to implement a combination of water demand and supply management policies (e.g., net agricultural water savings and recycling treated wastewater) to delay the problem of water limits to growth in the region.

Study on the measurement and the changing trend of the energy use of China’s economic sectors: based on cross-region input-output model

The consumption of fossil energy is the major cause of environmental pollution. Effectively reducing the fossil energy use has important significance for achieving China's green development targets. The premise for reducing fossil energy use is accurately measuring the amount of energy use and identifying the key sectors and links of energy use of China's economic sectors. This paper, by establishing a cross-region input-output model, measured the amount of energy use from the perspective of embodied energy, explored the changing trend of energy use between 2002 and 2015, and identified the key sectors and links of energy use. The results show that the embodied energy intensities of China's economic sectors are generally higher than the world average level, but its changing trend is declining. Although the amount of energy use shows a growth trend, the growth rate manifests a decline process. The key sectors of energy use assemble in the resource sector and heavy industry sector. The key link is intermediate use, but about 80% of embodied energy of intermediate use has been used by downstream sectors. Approximately 76% of the embodied energy of final demand has been used by gross fixed capital formation and urban residents' consumption. China has turned from a net exporter of embodied energy to a net importer since 2012. There is a resource mismatch in China's import and export structure of embodied energy.