Industrial structure, technological innovation, and total-factor energy efficiency in China.

TLDR: The study found that from 2003 to 2016, China’s total-factor energy efficiency showed a fluctuating trend of “falling first and then rising,” and due to the low conversion rate of scientific and technological achievements in China, the impact of technological innovation input on total-Factor energy efficiency is not significant.

Abstract: The promotion of industrial restructuring and technological innovation is the most important and realistic way of improving energy efficiency. This thesis uses the modified Super-SBM method to measure China’s total-factor energy efficiency and then uses the dynamic spatial panel model (DSPM) to verify the effect of industrial structure and technological innovation on total-factor energy efficiency. The study found that from 2003 to 2016, China’s total-factor energy efficiency showed a fluctuating trend of “falling first and then rising.” The inflection point appeared in 2012; total-factor energy efficiency in the Eastern region was significantly higher than the national average, while in the Central and Western regions, it was significantly lower. The results of the analysis show that both the service adjustment of the inter-industry structure and the productivity growth of the intra-industry structure significantly promote improvements in total-factor energy efficiency. However, due to the low conversion rate of scientific and technological achievements in China, the impact of technological innovation input on total-factor energy efficiency is not significant. This is in contradistinction to technological innovation output which does significantly improve total-factor energy efficiency. The above research conclusion is still robust and reliable after changing the measurement method and spatial weight matrix.