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Cities have emerged as critical and challenging places for promoting the green and low-carbon transformation of the economy and society in the context of the "dual carbon" targets. Meanwhile, fiscal policy is also an indispensable component of the public policy framework supporting the green and low-carbon transformation. This paper uses the pilot project of "Comprehensive Demonstration Cities for Energy Conservation and Emission Reduction Fiscal Policies" ("ECER-CD" policy) implemented in China since 2011 as a quasi-natural experiment. This research theoretically analyzes and empirically tests the energy conservation and emission reduction effects of fiscal policies supporting green and low-carbon transformation utilizing methodologies such as time-varying DID and multiple periods and multiple groups of DID. The study finds that the pilot cities effectively reverse the behavioural bias of local governments and promote energy conservation and emission reduction efforts. This conclusion holds after undergoing robustness tests such as parallel trend analysis and heterogeneity treatment effects. The effectiveness of the pilot policy is attributed to the upgrade of industrial structure, improvement of energy efficiency, and the effects of green technology innovation. However, cities' geographic location and resource dependency can interfere with the effective implementation of policies. This paper also further explores the environmental dividends and economic consequences of the policy and finds that the pilot cities have certain environmental dividends and do not significantly restrain economic and social development. This study broadens the research perspective on fiscal policies in energy conservation and emission reduction and clarifies the pathways through which fiscal policies promoting green, low-carbon transformation drive energy conservation and emission reduction in cities. Moreover, it also improves the use of the Difference-in-Differences method in evaluating policy effects in scenarios such as the overlapping implementation of pilot policies and policy withdrawal. Finally, this paper proposes policy recommendations to provide more empirical evidence for China to accelerate the green and low-carbon transformation of the economy and society. [ABSTRACT FROM AUTHOR]

Energy quota trading is critical to both energy conservation and the achievement of dual-carbon goals. However, little remains to be done on total factor productivity and economic potential for Chinese industry. The purpose of this paper is to counterfactually model and explore the effects of energy quota trading on total factor productivity and economic potential in industrial sector. We propose a command-controlled DEA model and an energy quota trading DEA model through non-parametric linear programming based on two policy strategies of energy consumption control. We then assess total factor productivity and its growth sources for 35 two-digit industrial sector in China, as well as examine economic potential and optimal path forecasts for carbon peaking. The results show that total factor productivity and economic potential for energy quota trading are higher than those for command-controlled energy policy. Energy-saving effect can be achieved for energy quota trading because the total energy input is lower. Additionally, the sources of productivity growth differ in timing. The average economic potential and total factor productivity of different industries differ due to the heterogeneity of the production conditions and scale of development of individual market players. Moreover, the catch-up emission reduction path with an increase of 8% in output and 4.76% in energy consumption is the optimal carbon peaking path under energy quota trading. Our findings shed valuable light on China's efforts to expand energy quota trading for high-quality development in the context of carbon peaking. • Propose a command-controlled DEA model and an energy quota trading DEA model. • Assess TFP and its growth sources for industrial sector in China. • Compare the impact of different energy policies on economic potential and TFP. • Estimate the energy saving and emission reduction potential of energy quota trading. • Examine the optimal energy-saving and emission-reduction path forecasts for carbon peaking.. [ABSTRACT FROM AUTHOR]

Existing studies pay little attention to when or under which conditions foreign direct investment (FDI) can spill energy-saving technologies. From a perspective of energy-biased technical change and using a two-layer nested constant elasticity of substitution (CES) production function, this paper investigates the energy-saving spillover effect of FDI on technical change (i.e., energy-saving spillovers) in China between 2002 and 2015. In particular, we consider the conditions of marketization, industry, technology, and labor mobility to examine whether and when FDI has energy-saving spillovers. The results indicate no income inequality effect, i.e., there is no evidence supporting that FDI flowing into low- and middle-income regions increases energy consumption, while FDI flowing into high-income regions conserves energy. However, there is a condition effect: FDI can improve (support the halo effect) or deteriorate (contradict the halo effect) the environmental performance under different conditions. Moreover, there is a threshold effect: the direction of FDI spillovers varies with the different levels of the threshold variables. An increasing marketization motivates enterprises to select energy-biased technologies. It is more likely to generate energy-saving spillovers in the regions with a lower specialized agglomeration level. FDI will have energy-biased spillovers when domestic technological level is relatively high with an evident energy-biased technology. In addition, a moderate labor mobility is beneficial to the energy-saving spillovers of FDI. [ABSTRACT FROM AUTHOR]

For many years, China has invested effort into achieving resource conservation and environmentally friendly economic development. The measures implemented include promoting technological innovation, market-oriented reform and industrial structure adjustment. But there are open questions: What have the effects of these measures been? Have they helped China achieve win-win development in terms of its resources, environment, and economy? This paper aims to answer these questions by using a newly proposed global three-hierarchy meta-frontier Luenberger index that can quantify the effects of promoting technological innovation, industrial restructuring, etc., on economic growth, energy conservation and emissions reduction. The results show that (1) during 2001–2016, China's energy efficiency, economic efficiency, and emissions efficiency improved, indicating that China's efforts have brought about the win-win development of resources, the environment, and the economy; (2) the implemented measures have heterogeneous effects on economic growth, energy conservation, and emissions reduction. The implemented measures are generally beneficial to energy conservation and emissions reduction but potentially harmful to the economy; (3) the effects of these measures on economic growth, energy conservation and emissions reduction across China's regions and provinces are also quite different, indicating that local provincial governments should have a clear understanding of their own characteristics before implementing the relevant policies and measures. • A global three-hierarchy meta-frontier Luenberger index was proposed for the study. • It can quantify the effects of China's efforts on economy, energy, and emissions. • Results show that China's efforts have brought about a win-win development. • There are the heterogeneities of China's pathways to economic growth, energy conservations and emissions reductions. • The future strategies for China's win-win development should take the heterogeneities into account. [ABSTRACT FROM AUTHOR]

Abstract The construction industry is one of the largest energy consumers and CO 2 emitters in China. This paper primarily aimed to explore the driving forces of energy-related CO 2 emissions (ECE) from the construction industry. Adopting a comprehensive decomposition approach, this study decomposes the changes in ECE into eight factors. The main results provide the following findings. (1) Industrial activity was the largest factor pushing the growth of CO 2 emissions, driving up CO 2 emissions in all years and contributing to a 174.65 Mt CO 2 emissions increase in total. (2) In contrast, advances in industrial output technology represented the dominant factor inhibiting CO 2 emissions, cumulatively reducing CO 2 emissions by 99 Mt. (3) The effects of potential energy intensity changes and industrial output technical efficiency fluctuated in different years but exerted positive effects on CO 2 emissions over the entire period. (4) Additionally, changes in spatial structure, energy-saving technology, and energy consumption structure as well as energy usage efficiency all contributed to emissions reductions to varying degrees. The CO 2 emissions of the construction industry increased in all provinces, while emissions changes and their factor effects varied distinctly across provinces. Highlights • Direct and indirect CO 2 emissions in China's construction industry are calculated. • Impacts of driving factors are quantified by combining the PDA and IDA methods. • Industrial activity is mainly responsible for CO 2 emissions increase. • Industrial output technology change is the dominant curbing factor. • Factor effects of China's construction industry vary distinctly across provinces. [ABSTRACT FROM AUTHOR]

China's energy conservation has received extensive attention. As the most important sector of the economy, the manufacturing industry plays a vital role in China's energy issues. Conserving energy in China's manufacturing industry (CMI) is of great significance for both China and the world. In this paper, the co-integration method is applied to test the long-term equilibrium relationship among energy consumption and three explanatory variables during the period 1980–2013. Furthermore, we use scenarios analysis method to forecast the energy demand of CMI. The results show that if the government does not properly manage the economy, the energy demand of CMI will reach 2558.97 Mtce in 2020 and 2594.18 Mtce in 2030. On the contrary, if the government attaches importance to energy conservation and takes necessary actions, energy demand in the industry will reduce to 1113.79 Mtce by 2030, which implies a large energy conservation potential for CMI. [ABSTRACT FROM AUTHOR]

Understanding the driving factors behind energy consumption changes provides insights about consumption patterns and can inform targeted energy saving polices. This paper applies a joint decomposition approach, introducing an index decomposition analysis (IDA) method into a production theoretical decomposition analysis (PDA). This integrated approach decomposed energy consumption changes into eight drivers. A subsequent empirical study of China resulted in three key findings. First, regardless of the geographic area considered, potential economic development was the largest factor driving energy consumption growth. Second, the technological change effects associated with economic development and energy savings both played significant roles in reducing energy consumption. Third, the efficiency change effects of energy use and economic development were generally unable to relieve the pressure of increases in energy consumption, especially in the eastern regions. [ABSTRACT FROM AUTHOR]

Following the impressive economic achievements in the past decades, China is faced with energy and environmental challenges. To carry out more effective and targeted energy policies, the heterogeneities of different industrial sectors are of great importance. The energy consumption of China’s light industry in 2012 was 316 million tons of coal equivalents, which is about the energy consumption of South Korea. The paper explored the substitution relationships between various input factors and fuel sources, and showed that electricity price reform is crucial for energy conservation in China’s light industry. Then, the dynamics of energy intensity change is examined by decomposing energy intensity into budget effect, substitution effect, output effect and technology advance effect. The result revealed that the substitution effect between input factors is a key driving force. However, technology progress seems to contribute very little. For future energy policy alternatives, promoting the implementation of new conservation technology and electricity price reform may be effective measures. [ABSTRACT FROM AUTHOR]

Strengthening the implementation of environmental regulation is one of the key measures to prevent further energy depletion and environmental deterioration. This paper focuses on complicated relation between environmental regulation and fossil energy consumption. We theoretically identified the direct and indirect paths of environmental regulation that affect fossil energy consumption and analyzed the relationship between the two. To identify the indirect impact of environmental regulation on fossil energy consumption, we incorporated three types of technology (e.g., production technology, pollution abatement technology, and backstop technology) into our model. On the theoretical basis, we then evaluated the impact of environmental regulation on fossil energy consumption in China by applying both non-spatial models and spatial econometric models. In the direct path, energy-saving effect of environmental regulation in China is dynamic and yields complex results from the “Green Paradox” and “compliance cost”. As for indirect effects, we find that current environmental regulations have promoted technological progress in production to induce energy savings but failed to drive technological advancements in pollution abatement and backstop to guarantee a sustainable energy development. Based on the findings, some corresponding policy implications are provided. [ABSTRACT FROM AUTHOR]

Energy conservation is a major strategy for China to shift to a low-carbon economy and achieve sustainable development. The heating industry uses coal as its main fuel source in China. Energy consumption of China's heating industry grew at an average annual growth rate of 7.75% over 1980–2011. We use the co-integration method to explore the long-run relationship between energy consumption of the heating industry and the factors including GDP, urban population density, central heating supply areas and fuel price. The results indicate that 1% GDP growth yields 2.24% increase in energy consumption of the heating industry. 1% urban population density growth and 1% central heating areas growth result in 0.56% and 0.36% decline in energy consumption of the heating industry, respectively. Under the BAU scenario, energy consumption of the heating industry will be 157.11 Mtce in 2020. Energy conservation potential is estimated to be 22.16 Mtce under the moderate scenario and 43.6 Mtce under the advanced scenario. Moreover, this paper holds the view that the central heating system can be considered as an effective heating method for cities with dense population, both in the south and north. At last, policy recommendations for energy conservation in the heating industry are provided. [ABSTRACT FROM AUTHOR]

Although China has made a lot of achievements in Energy Conservation and Emission Reduction (ECER) initiatives currently, the continued reduction in the ECER space has gradually become one of the bottlenecks hindering the construction of ecological civilization. It is thus imperative that all levels of government develop and introduce more effective policies and measures to further drive the potentiality exploitation of ECER. The purpose of this paper is to examine which policies are more conducive to improving regional ECER levels. By taking Fujian Province as an example, the paper builds an ECER dynamic model and provides integrated incentives from six dimensions including fiscal, tax, emissions trading, finance, industry and technology, and examines their policy effectiveness. The results show that: (1) In the single policy scheme, the tax policy is the most effective, though such effect is less than that of the policy combination; (2) With the increase of the category and quantity of policy combinations, the synergy among policies is so significant that ECER effect is expected to be remarkable; (3) Within the scenarios of policy combination, the technical policy has not contributed to obvious performance improvement, because it requires a longer lag phase to truly experience a prominent innovation spillover of clean technology. This paper elucidates theoretical implications by enriching the social-economic system and underscoring the critical importance of public incentive for the ECER initiative. Also, the findings carry managerial implications by guiding companies to carry out more targeted green and cleaner production activities and providing a valuable reference for the government to make ECER policy. • We develop a dynamic model for ECER of which government subsystem is the operation hub. • We create an ECER policy framework including fiscal, tax, emissions trading, finance, industry and technology. • By the model, we simulate energy consumption and main pollutant emissions variables and examine the ECER policy effect. • We find that the ECER effect of single tax policy is the most significant, compared with other policies. • We find that the effect of ECER policy combination is more salient than the single policy scheme and we suggest an optimal ECER policy portfolio eventually. [ABSTRACT FROM AUTHOR]

The rapid development of the magnesia refractory industry has caused serious problems of resource and energy waste and environmental pollution. Cleaner Production and Cleaner Production Audit are considered effective tools for energy conservation and emission reduction in the industry. This study presents an application of cleaner production and cleaner production audit in a typical large-scale magnesia raw material production plant in Liaoning, China and the results of their implementation. Through the 7 steps of a cleaner production audit (planning and organization, pre-assessment, assessment, option generation and screening, feasibility analysis, implementation, and maintenance of cleaner production), the resource and energy consumption and environmental emissions of the enterprise are investigated, the key auditing procedures are identified, and the cleaner production opportunities are analyzed. 28 cleaner production options, including raw material and energy substitution, technology improvement, facility maintenance and updates, process optimization and control, waste reutilization, management, and staff training and motivation, have been developed and implemented in a feasible way. After complete implementation of these options, great environmental and economic benefits are expected to be achieved: increased utilization of magnesite tailing powder by 281,000 t per year; annual savings of 25,000 t of magnesite ore; savings of 384,000 kW h of electricity; a 21.7% reduction in magnesite consumption per ton of FM product; improvement of the wastewater utilization rate from 70% to 100%; the removal of dust, SO 2 and NO x emissions produced by burning coal or producer gas; savings of 1.066 million USD per year. The results demonstrate that implementing cleaner production can not only bring huge environmental benefits, but also significant economic gains. Moreover, factory staff have recognized the benefits that cleaner production can bring to the plant, and plan to continue the process. Since there are few studies on the application of cleaner production in the magnesia refractory industry, this paper provides scientific guidelines for its implementation in other similar enterprises, and a theoretical and practical basis for promoting the sustainable development of the industry. [ABSTRACT FROM AUTHOR]

Renewable energy consumption has a strong driving force for promoting energy conservation and emission reduction, and is a new way to achieve clean and low-carbon development. Based on this, this paper uses the data of renewable energy consumption, carbon productivity, GDP, population, energy efficiency and technological innovation of 30 provinces in China from 2011 to 2020, and empirically analyzes the impact of renewable energy consumption on carbon productivity in 30 provinces in China, using STIRPAT model, comprehensively considers spatial horizontally and temporal vertically dimension. The empirical results show that: (1) China's carbon productivity shows a significant spatial spillover effect, its impact can spill over to adjacent areas within 1000 km; (2) China's renewable energy power consumption plays a significant role in promoting the improvement of carbon productivity. (3) Renewable energy consumption in the western region plays the most important role in driving carbon productivity. Finally, according to the temporal and spatial relationship between renewable energy consumption and carbon productivity in different regions, we provide specific regional policy suggestions. • The STIRPAT model is employed to explore temporal and spatial impact, while it considers sub regions. • Spatialy, the impact can spill over to adjacent areas within 1000km. Temporally, the impact fluctuates and rises. • The positive role of renewable energy consumption is found in China's western region. [ABSTRACT FROM AUTHOR]

China is currently experiencing rapid economic growth as a result of industrialization and urbanization. In the next 20 years, China's energy demand will increase substantially, and energy conservation will become imperative for the country's low carbon economic transformation. Since 1998, China's chemical fiber production has ranked first in the world. In 2011, China's chemical fiber production accounted for about 70% of the world's total output. Therefore, energy saving is important for China's chemical fiber industry, and can provide immense benefits, and hence the need for thorough and intense research. In this paper, the co-integration method is used to test the relationship between energy consumption and its influencing factors such as GDP, energy prices, population and R&D expenditures. The results show that there is a long-term relationship between the variables. Based on this, we estimate energy demand and predict the energy-saving potential for the industry under different scenarios. We apply the Monte Carlo simulation method to verify the reliability of the prediction. Scenario analysis is adopted to predict energy demand and energy saving in the industry under different scenarios. Finally, we propose some policy suggestions on energy saving based on the research. [ABSTRACT FROM AUTHOR]

Starting with the 11th Five-Year Plan (FYP) and continuing in the 12th FYP, quantitative and binding targets have been set for energy-efficiency improvement in China. Drawing on international experience in burden-sharing on climate change, this paper presents a framework for provincial-level disaggregation of energy-saving targets in China. Based on principles of equity and efficiency, four scenarios have been established by weighting different choice preferences of responsibility, capacity, and potential. In addition, nonlinear and linear allocation models have been developed by considering or ignoring marginal energy-saving cost. When this framework was applied to the disaggregation of the national energy saving target of 16% during the 12th FYP, the results show that the final allocation schemes are largely determined by the policy maker's choice preferences. The extreme reduction target of 37.26% fell to Shanghai under responsibility preferring (RP) using the linear allocation method, while the capability preferring (CP) scenario considering marginal energy-saving cost is the closest to the actual scheme accepted by the 30 provinces. Development of such a framework may serve as a feasible policy instrument to help China achieve its conservation targets in a cost-effective way and in accordance with its regional development strategies. [ABSTRACT FROM AUTHOR]

Abstract: Energy consumption keeps increasing in China's building sector with the constant growth of urban population and people's living standard. In order to achieve co-benefits of reducing energy use, greenhouse gas (GHG) emissions and energy costs effectively, all respects related to the energy performance in the building sector need to be addressed. Considering the fact that over 80% of total energy use in a building's lifecycle is contributed by the operation stage, the study's focus is put on this stage for well understanding the energy consumption and carbon emissions and exploring the approach to achieve the effectiveness of co-benefits. The energy use in large commercial buildings is 4–6 times higher than residential buildings in China, thus IKEA Xuhui Store as one of large shopping malls in Shanghai is selected as the case study by using the method formed in the study. The outcomes of research show that the benefit of annual 170 MWh of energy use and 150 tons of CO2e reduction as well as the significant economic benefit have been achieved by implementing different measures in IKEA Xuhui Store between 2008 and 2011. Existing investment, technology and capacity barriers to co-benefits approach in a wider consideration of China's building sector are described. The assessment for evaluating co-benefits of cutting energy use and CO2 emissions in the production and demolition stages in a building's lifecycle are also addressed by the paper. However, it is very complicated to make a lifecycle assessment on the overall co-benefits in the building sector because of the complexity and the lack of available data for the research. [Copyright &y& Elsevier]

Faced with urban high-density environment, current energy-saving measures are focused on climatic design and technical improvement, which might not align well with China's national policies on extending the longevity of high-rise buildings to realize life cycle sustainability. Therefore, this paper explores energy-efficient strategies for tall office buildings in response to the time-varying operational parameters to realize spatial malleability from industrialized perspective. The results from a case study show that, first, the model of office + multi-courtyards has positive impact on climatic adaptation, in terms of ventilation, air temperature, thermal radiation environment, and effectiveness of thermal energy conservation. Second, the average energy efficiency rate of the model of office + multi-courtyards is from 12.8% to 4.7% with the interior space coverage of 20%–80%. Third, when the interior space coverage ranges from 50% to 60%, the average energy efficiency rate appears substantial fluctuation from 10.3% to 6.5% and appears the change point when the interior space coverage is 58%. • Office + multi-courtyard mode suites tall office buildings in subtropical zone. • The thermal energy efficiency rate of courtyard-style layout is around 4.7%–12.8%. • Energy efficiency rate sees large reduction when the interior space coverage is 58%. • Building separation is regarded as an essential condition for spatial malleability. • An energy-efficient strategy has been proposed from the industrialized perspective. [ABSTRACT FROM AUTHOR]

To evaluate the energy-saving and emission reduction potential of China's tobacco industry, this paper introduces RAM-DEA models to evaluate the energy and CO 2 emission efficiencies of 18 cigarette companies in China, compared with four of the leading multinational cigarette companies from 2009 to 2016. The results show the following: (1) The average energy and environmental efficiency of Chinese cigarette enterprises is only 0.373, the gap of the comprehensive efficiency between Chinese cigarette manufactures and the technological frontier of the world is big, but it is gradually shrinking. (2) The energy-saving and CO 2 emission reduction potential of Chinese cigarette companies are 57.2% and 68.1%, respectively, and the annual average comprehensive energy-saving and emission reduction quantities are 3.466 million MWH and 1.744 million tons. The energy-saving and emission reduction potential based on a scale efficiency improvement is relatively large. (3) The CO 2 emission efficiency gap of Chinese cigarette companies at domestic and foreign production levels is 25.5%, and it is larger than the energy efficiency gap, 14.1%, due to the high proportion of electric energy consumption. (4) Scale efficiency improvements and energy structure optimization are the main ways to save energy and reduce CO 2 emissions in the future. • New RAM-DEA models for evaluating the energy and emission efficiency are proposed. • Performance between tobacco companies at home and abroad are compared. • Regional differences in the performance of tobacco companies are analyzed. • The influence of production scale on efficiency performance are discussed. • Performance improving policies and strategies for different regions are proposed. [ABSTRACT FROM AUTHOR]

The industrial sector in China is energy-intensive and accounts for more than 60% of the nation's total energy consumption (demand). Narrating the story behind the growth of China's industrial energy consumption could help us understand the past and prepare for the future. This paper aims to investigate the factors affecting China's industrial energy consumption in the 21st century by using an extended production-theoretical decomposition approach (PDA) with considering the technological gap and scale of the economy effects. The new proposed decomposition framework includes four new factors, namely, the energy technological gap, the output technological gap, energy scale efficiency, and output scale efficiency. The results show that in the 21st century, the energy consumption of China's industry increased by more than one billion tons of standard coal. The expansion of the industrial economy is a dominant driver of China's industrial energy consumption, while potential energy intensity, energy technology, and output technology are the three largest energy-saving factors. In addition to the conventional factors, the newly proposed factors also have important effects on China's industrial energy consumption. Specifically, output scale efficiency is an energy-saving factor, while the energy technological gap, output technological gap, and energy scale efficiency are drivers of energy consumption. This suggests that China's industry is at the stage of returns to scale that is beneficial to output performance but harmful to energy performance. Meanwhile, the widening of the industrial technological gaps has negative impacts on China's industrial energy conservation. The proposed decomposition approach can provide information that cannot be obtained from traditional approaches and it can also be applied to many other cases for investigating feasible paths of energy-saving and emissions reduction. • A newly extended decomposition approach was proposed in this study. • The approach can quantify the effects of technological gap and scale economy. • Drivers of China's industrial energy consumption were investigated as a case. • The newly provided factors do have impacts on China's industrial consumptions. • It can provide information that cannot be obtained from traditional approaches. [ABSTRACT FROM AUTHOR]