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| 1 |
ID:
168354
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| Summary/Abstract |
The actual energy savings from efficiency improvement may be less than expectations because of behavior response of micro-units, which is named as rebound effect. For producers, the magnitude of such response depends on the operating flexibility. However, the precise; role of operating flexibility in rebound effect is still unknown because of difficulties in measuring operating flexibility. Over the past four decades, the Chinese government has implemented a wide range of reforms aiming at market-oriented transition, which increase operating flexibility of micro-units. It is natural to be questioned whether China's market-oriented reform increases energy rebound effect. In this study, we aim to explore the impacts of marketization on rebound effect. Using partially linear functional-coefficient panel data model to avoid prior criteria in model specification and smooth the change of rebound effect across regions, we found that about 20% of originally expected energy conservation from energy efficiency improvement would be rebounded in 2013. Furthermore, the results demonstrate that in line with China's uneven reform across regions, coastal provinces such as Jiangsu, Zhejiang, Tianjin, Shanghai, Beijing, and Guangdong, have larger rebound effects, which may be connected with their larger operating flexibility. The findings can enhance our understanding on the mechanisms of rebound effect as behavior responses. We also anticipate our paper to provide knowledge and broader implications toward optimal policy designs alongside China's ongoing market-oriented reforms.
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| 2 |
ID:
192345
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| Summary/Abstract |
This study investigates the environmental consequences of fuel price shocks, using a rich dataset from the Chinese megacity of Hangzhou. Our identification strategy is mainly aided by instrumenting fuel price using exogenous global oil prices. We find that a 10% increase in fuel price leads to a 10.29%–11.45% decrease in driving demand, reflected by road congestion index, and a 17.6%–20.27% decrease in industrial activities, measured by electricity consumption. The decreases in driving demand and industrial activities are indeed correlated with air quality improvement and decline in major pollutant concentrations. While the findings shed light on the short-term environmental outcomes of price-based measures, the negative effects of fuel price increases on industrial activities may generate undesirable impacts on macroeconomy in the long-term perspective. Despite ample evidence demonstrating that drivers respond to fuel price changes, considerably fewer studies investigate their environmental and economic consequences. This study addresses this gap in the literature and contributes to a better understanding of the effects of fuel price shocks on air pollution and economic activities.
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| 3 |
ID:
161838
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| Summary/Abstract |
An important environmental consequence of subsidies for fossil fuels is that it encourages the substitution from renewable energy, capital and labor to fossil fuels, and thus impedes the low carbon transition. To reduce energy consumption and energy-related greenhouse gas emissions, there is a renewed interest in phasing out fossil fuel subsidies. In policy debates, it is commonly believed that fossil fuel subsidies encourage wasteful energy consuming, and thus removing them would depress energy-related carbon dioxide (CO2) emissions. But whether it is the real case and the magnitude of mitigation by removing fossil fuel subsidies are still unanswered. Here we provide an opposite insight in this paper. We find that fossil fuel subsidies in China might have been removed in total in 2015, but further attention should be paid to whether the removal is caused by the market condition of low energy prices, or by the on-going market-oriented reforms. Furthermore, during the periods with positive subsidies, removing fossil fuel subsidies alone cannot achieve CO2 mitigation because it would lead to the substitution from low-emitted fuels to high-emitted coal and from capital and labor to energy. Our results demonstrate that additional policies and efforts will be required to fulfill the aspirations for low carbon economy. The findings in this paper may be extended to emerging and developing countries due to their similar conditions of fossil fuel subsidies.
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| 4 |
ID:
191245
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| Summary/Abstract |
Addressing the challenge of climate change requires information on how to achieve GHG mitigation at the global scale. Here, we use the latest data available on economic interdependencies between economies as well as the associated emission activities to track the drivers of global GHG emissions during the post-financial crisis era from 2009 to 2019, among which the role of spillover in the context of global trade is highlighted. We found that the decrease in GHG emission intensity is the main factor responsible for slowing down global GHG emissions, particularly for the industrial sector. Production technology effect plays an increasingly important role in reducing GHG emissions, yet they are still unable to offset the increasing GHG emissions caused by final demand expansion with the economy rebound after the financial crisis. The bilateral analysis across regions demonstrates that spillover plays an important role in driving global GHG emissions, and it is likely that changes in technology and economic structure could result in more GHG emissions in other economies. This motivates us to raise questions about jurisdiction-based GHG mitigation policies and a call for global cooperation to reduce GHG emissions.
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| 5 |
ID:
166323
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| Summary/Abstract |
Rural components are integral parts of China's economy, and hundreds of millions of China's residents still live in rural areas. Rural residents heavily depend on non-commercial energy due to the inaccessibility and unaffordability of commercial energy. Conventional use of solid biomass fuels threatens public health as well as environmental and ecological sustainability. Thus, rural energy transition must be promoted. By using a new dataset, we show China's rural energy transition to gain insights on where, how, and why this transition occurs in rural households. Unlike previous views, we find that after considering non-commercial energy, the per capita consumption of rural residential energy is considerably larger than that of urban counterparts. Moreover, migrations from rural to urban areas decrease rather than increase residential energy consumption. Furthermore, rural energy transition from low to high quality depresses energy consumption. Our results demonstrate how accessibility and affordability affect the fuel preferences of rural residents, thereby enabling us to identify the mechanisms of rural energy transition. We provide some insights and policy implications on the routes of China's rural energy transition, which may be further extended to other emerging and developing countries due to their similar rural energy use.
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