Can China realise its energy-savings goal by adjusting its industrial structure?

Shiwei Yu*, Shuhong Zheng, Guizhi Ba, Yi Ming Wei

*Corresponding author for this work

    Research output: Contribution to journalArticlepeer-review

    49 Citations (Scopus)

    Abstract

    To investigate whether China can realise its energy-savings goal by 2020 through adjustments to its industrial structure, this study proposes a dynamic input–output multi-objective optimisation model. According to this model, the objectives to be achieved include the maximum gross domestic product and employment, and the minimum energy consumption, where the constraints are the sectoral dynamic input–output balance, labour and energy supply, and sectoral production capacity. The four best solutions are screened from the Pareto-optimal front. The study findings show that the energy intensities in 2020 would decrease by 42.8%, 43.5%, 42.9%, and 43.4% in the four scenarios when compared to their 2002 levels. This means that China can fully achieve its planned energy-savings target for 2020. In order to ensure that the industrial structure is optimised for the future, sectoral capital investments should be regulated by China's government and efforts to improve energy efficiency should be maintained.

    Original languageEnglish
    Pages (from-to)273-293
    Number of pages21
    JournalEconomic Systems Research
    Volume28
    Issue number2
    DOIs
    Publication statusPublished - 2 Apr 2016

    Keywords

    • Dynamic input–output model
    • Energy-saving
    • Industrial structure adjustment
    • Multi-objective optimisation
    • Scenarios

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