Convergence And Divergence Research Of Total Factor Energy Efficiency In Industrial Sector

Energy efficiency means the ability to achieve the maximum economic output in a given input conditions, and also means the ability to achieve the minimum energy input under the condition of the established economic output. With the fast rapid of economical development of China, the energy and environment face lots of pressure. Besides, lower level of energy per capital, unevenly distributed among regions and inefficiency use, all of which make that the bad energy condition in our country appearing more prominent. Industry, which is the main force of energy consumption, has always been a "big" energy consumption. So we must change the current mode of industrial sectors:higher energy consumption, higher pollution and lower efficiency. What is more, we should increase the energy efficiency and put the implementation of energy conservation into practice. The12th five-year plan clearly points that per million yuan in GDP of energy consumption should be decreased by16%and the emissions of major pollutants should be reduced by the targets of8%. So we can see that saving energy, improving the energy efficiency, reducing the emissions of the greenhouse gas, developing the circular economy and promoting the rapid of the development in economy which have been an important influence on the livelihood.The analysis of this article uses the data of the38industrial sectors of energy consumption by30provinces in our country in2001-2010. First, the paper uses the DEA method to calculate and analyse the energy efficiency of the38industries by30provinces. Second, this paper uses the Malmquist index method and decomposes the index into the technological progress and technical efficiency in order to find the reasons of the high energy efficient industry and province. And at last, the paper uses the convergence theory to analyse the industrial energy efficiency by30provinces which is convergence or not.The study shows that:First, the west area has the highest efficiency of energy use in38industries in2001-2010and then for the east area. The middle is the last and it belows the average of the national level. In west area, there is a higher industrial energy efficiency in Chongqing, Sichuan, Shaanxi and Xinjiang. And there is a higher energy efficiency in Beijing, Tianjin, Liaoning, Hebei and Shandong in the east area. In middle, Shanxi, Heilongjiang, Henan and Hunan have the higher energy efficiency. It shows that the overall trends is "West—East—Middle"; Second, the results also show that higher energy efficiency industry is mainly distributed in the strong economic strength, capital and technology intensive industry. Besides, it also in monopoly, the access of higher barriers and less competitive industries. At last, this paper shows that the whole country and the west area do not exist the β convergence, but the east and the middle area exist the β convergence.Otherwise, I find the market competition is an important factor to the convergence, but the efficiency of the technological progress to convergence is not obvious. The results of this paper will have the contribution to the government and industries to make the implement appropriate policies to co-ordinate individual provincial development strategies on the national basis.