Social Sciences in China (Chinese Edition)

No.10, 2017

 

A New Perspective on Energy Efficiency Enhancement: A Test Based on Market Segmentation

(Abstract)

  

Wei Chu and Zheng Xinye

 

A comparison of the facts at the micro-and security level indicates that although some Chinese enterprises are at the international frontier in terms of micro-level energy efficiency, overall energy efficiency at the industrial and national level is seriously lagging behind. According to the market segmentation hypothesis, this is because market segmentation suppresses energy efficiency through its effect on the three channels of technological efficiency, scale efficiency and distribution efficiency. This effect has been demonstrated by preliminary evaluation and research based on Chinese provincial panel data for 1995-2012. An electricity market simulation finds that the establishment of a unified national electricity market can effectively improve energy efficiency and gain energy conservation dividends.