China's Energy Strategy: Economic Structure, Technological Choices, and Energy Consumption

By Xiannuan Lin | Go to book overview

3
ACCOUNTING FOR ENERGY-USE CHANGES: A STRUCTURAL DECOMPOSITION ANALYSIS

Structural decomposition analysis (SDA), an analysis of economic changes by means of a set of comparative static adjustments of key parameters of input- output tables ( Rose and Miernyk, 1989), dates to the very origin of modern input-output economics. Leontief ( 1941, 1951, 1953) first developed the technique to compare input-output accounts over time. Chenery and his colleagues ( Chenery and Watanabe, 1958; Chenery et al., 1962) conducted a multisector comparative static analysis to identify sources of economic growth. Carter ( 1970) applied the input-output framework to examine the impacts of structural change on industrial specialization and economic efficiency in the United States. She also extended SDA to a dynamic level by linking changes in technical-input coefficients with the allocation of investment. Stone and Armstrong ( 1974) performed a comparative input-output analysis to trace structural changes in the British economy from 1948 to 1968.

SDA has been widely used in energy studies. Strout ( 1966), for example, analyzed how changes in technology and in the level and composition of final demand affected U.S. energy use between 1939 and 1954. Reardon ( 1976) conducted an input-output analysis of U.S. energy use changes from 1947 to 1958, 1958 to 1963, and 1963 to 1967. Park ( 1982) developed an input-output framework for measuring the direct, indirect, and income-induced energy effects of a change in final demand and for estimating the effect of technological change on energy consumption. Ostblom ( 1982) attributed the changes in the energy- output ratio of the Swedish economy to changes in direct energy coefficients, changes in output share of industrial sectors, and changes in the composition of final demand. Hannon ( 1983) compared the energy costs of providing goods and services in the United States in 1963 and 1980. Proops ( 1984) decomposed changes in the energy-output ratio into three factors: changes in energy intensities, changes in final demand, and changes in the structure of interindustry

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China's Energy Strategy: Economic Structure, Technological Choices, and Energy Consumption
Table of contents

Table of contents

  • Title Page iii
  • Contents vii
  • Tables and Figures ix
  • Preface xv
  • 1 - Introduction 1
  • Notes 11
  • 2 - Energy in China's Economy, 1981 and 1987 13
  • Notes 36
  • 3 - Accounting for Energy-Use Changes: A Structural Decomposition Analysis 39
  • Notes 94
  • 5 - Energy Effects of Production-Technology Changes 95
  • Notes 126
  • 6 - Energy Conservation in Action: A Case Study of the Iron and Steel Industry 129
  • Conclusion 158
  • Notes 161
  • 7 - Summary and Conclusion 163
  • APPENDICES 173
  • Bibliography 185
  • Index 199
  • About the Author 204
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