Analysis On China’s Sectoral And Regional Rebound Effect

This paper is aimed at evaluating the degree of China’s rebound effect, which means how the rising energy efficiency would affect the overall energy use in China.A Constant Elasticity of Substitution Production Function (CES Production Function) is used to set up the structure for China’s sectoral and regional production model. Based on the estimation results of the parameters, we can calculate the rebound effect of each sector and region.The data analysis has shown the following results:1) China’s overall rebound effect is over 100%, no matter in short or long term, which means that raising energy efficiency would increase the overall energy use; 2) China’s industrial sectors’overall rebound effect kept stable before 2004, while it has risen since 2005, resulting in backfire effect by now, which means that improving energy efficiency will not cause the energy use to reduce but to increase; 3) The rebound effects vary from sector to sector and region to region. We should discuss each of these cases separately.From the perspective of raising energy efficiency, it is possible to reduce the energy consumption per unit output, but uncertain for the total energy input.