The Dynamics of Structural and Energy Intensity Change

In this study, an extended structural change model is adopted to explore the mechanisms of how structural adjustments influence the changes of energy intensity. Through adding an energy production sector to the standard model, we find that the change of sectoral energy intensity is determined by the...

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Main Author: Lizhan Cao
Format: Article
Language:English
Published: Wiley 2017-01-01
Series:Discrete Dynamics in Nature and Society
Online Access:http://dx.doi.org/10.1155/2017/6308073
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author Lizhan Cao
author_facet Lizhan Cao
author_sort Lizhan Cao
collection DOAJ
description In this study, an extended structural change model is adopted to explore the mechanisms of how structural adjustments influence the changes of energy intensity. Through adding an energy production sector to the standard model, we find that the change of sectoral energy intensity is determined by the differences of sectoral and energy production technologies. Moreover, the change of economy-wide energy intensity is shaped by both structural and sectoral energy intensity changes. According to theoretical findings and simulation exercises, structural change, initiated by technological growth rate and substitution elasticity, affects the growth rate of economy-wide energy intensity. (1) If the energy threshold technological growth rates are high or low enough, the overall energy intensity will develop monotonically. (2) If the energy threshold technological growth rate is moderate, and (i) substitution elasticity and initial final production technological growth rate meet some requirements, the economy-wide energy intensity will grow monotonically; otherwise, (ii) with the suitable combination of substitution elasticity and initial final production technological growth rate, the overall energy intensity can develop nonmonotonically, like U or inverted-U curves.
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spelling doaj-art-35e8708817934587a33abb257cbb74e72025-02-03T01:02:04ZengWileyDiscrete Dynamics in Nature and Society1026-02261607-887X2017-01-01201710.1155/2017/63080736308073The Dynamics of Structural and Energy Intensity ChangeLizhan Cao0School of Management, Harbin Institute of Technology, Harbin 150001, ChinaIn this study, an extended structural change model is adopted to explore the mechanisms of how structural adjustments influence the changes of energy intensity. Through adding an energy production sector to the standard model, we find that the change of sectoral energy intensity is determined by the differences of sectoral and energy production technologies. Moreover, the change of economy-wide energy intensity is shaped by both structural and sectoral energy intensity changes. According to theoretical findings and simulation exercises, structural change, initiated by technological growth rate and substitution elasticity, affects the growth rate of economy-wide energy intensity. (1) If the energy threshold technological growth rates are high or low enough, the overall energy intensity will develop monotonically. (2) If the energy threshold technological growth rate is moderate, and (i) substitution elasticity and initial final production technological growth rate meet some requirements, the economy-wide energy intensity will grow monotonically; otherwise, (ii) with the suitable combination of substitution elasticity and initial final production technological growth rate, the overall energy intensity can develop nonmonotonically, like U or inverted-U curves.http://dx.doi.org/10.1155/2017/6308073
spellingShingle Lizhan Cao
The Dynamics of Structural and Energy Intensity Change
Discrete Dynamics in Nature and Society
title The Dynamics of Structural and Energy Intensity Change
title_full The Dynamics of Structural and Energy Intensity Change
title_fullStr The Dynamics of Structural and Energy Intensity Change
title_full_unstemmed The Dynamics of Structural and Energy Intensity Change
title_short The Dynamics of Structural and Energy Intensity Change
title_sort dynamics of structural and energy intensity change
url http://dx.doi.org/10.1155/2017/6308073
work_keys_str_mv AT lizhancao thedynamicsofstructuralandenergyintensitychange
AT lizhancao dynamicsofstructuralandenergyintensitychange