Energy technology of conservation versus substitution and energy intensity in China

A major challenge for sustainable development is providing adequate energy services while mitigating adverse environmental effects, which unquestionably requires a reduction in the energy consumed per unit of real GDP (i.e. energy intensity) and novel energy technologies. However, our knowledge of how energy technologies influence energy intensity is incomplete. This paper thus empirically investigates the effects of energy technologies on energy intensity by dividing them into energy-conservation and energy-substitution technologies. Additionally, we classify energy technologies according to their executors, as having two purposes. Using a China's provincial dataset over 2000-2018, we find that energy conservation technology plays a more important role in decreasing energy intensity compared to energy substitution technology. In addition, from the purposes of these energy technologies, the energy technologies coming from utility-type enterprises exert the most significant effect on energy intensity reduction. Since the effect of energy technologies on energy intensity may be related to technology absorptive ability, an additional analysis based on the dynamic panel threshold model indicates that technology absorptive ability shows an important effect on energy intensity.(c) 2021 Elsevier Ltd. All rights reserved.