The Influence Mechanism And Effect Of Factor Price Distortion On Energy Efficiency

Since the reform and opening up,China’s economy has maintained rapidly growth,and China’s economy has made remarkable achievements.Since 2003,the economic growth model appears to reverse the high energy input.In the field of industry and heavy industry,this phenomenon is even more obvious.This is contrary to the energy policy of "taking a new road to industrialization".At this stage,China is still a developing country,it is still in the stage of rapid development of urbanization and industry.The development of the country’s energy demand is also very strong,while the demand for energy will gradually increase.Compared to the demand,the supply of energy will become a major obstacle,that is,energy constraints will become more and more serious.Compared with other developed countries,China’s energy efficiency is relatively low,there is a serious waste of the situation.At the same time,China’s energy consumption has also brought a lot of environmental problems,such as carbon dioxide emissions,sulfur dioxide and solid particles of direct emissions and so on.And from the point of view of the factors of production,the process of market oriented reform of our country is seriously lagging behind.There are different degrees of price distortion in the factor market such as capital goods market,labor market,land market and resource goods market,etc.This distortion can lead to the mismatch of resources,and even economic activities can not be normal operation.Energy is an essential factor in our daily life.But at present,China’s energy efficiency is seriously low.At the same time,the distortion of factor price in China indeed exist.There must be a close connection between the two.Therefore,this paper attempts to explore the problem of low energy efficiency from the angle of factor price distortion,and at the same time,the influence mechanism,the direction and the degree of influence on energy efficiency are deeply studied.In this paper,the impact of factor price distortion on energy efficiency is analyzed and studied.This paper is divided into five parts.The first part is the introduction,first introduces the background and significance of this study,and then introduces the research methods and the framework of the paper,and finally points out the innovation points and deficiencies;The second part is the theory and literature review part,combing the factor price distortion correlation research,energy efficiency research and factor price distortion influence on energy efficiency.The author found that many scholars at home and abroad have done a lot of research on factor price distortion and energy efficiency,but the research on the relationship between the two is relatively small.And most of the research in this area is qualitative research.From this point of view,this paper provides the research ideas and research perspective.The third part is the measure of the price distortion and energy efficiency of our country.Firstly,energy is added to the production C-D function as a factor in the measure of the factor price distortion to the capital,labor and energy factor price distortion degree,the factor price total distortion degree as well as their relative degree carries on the measurement and the analysis.Secondly,in this paper,the EBM model is used to measure the energy efficiency,which not only uses GDP as the desired output,but also joins the carbon dioxide and sulfur dioxide as the undesirable output.The fourth part is to build a theoretical model and empirical analysis.Based on the production function and cost function,a complete theoretical model of the relationship between factor price distortion and energy efficiency is established,and the Tobit model is established to verify the hypothesis proposed in the theoretical model.The fifth part is to draw conclusions and provide policy recommendations.The main conclusions of this paper are:First,China’s factor distortions now do exist.Second,the degree of absolute distortion of capital,labor and energy factors have a significant impact on energy efficiency.At the same time,the relative distortion of capital and energy factors and the relative distortion of labor and energy sources also have a significant impact on energy efficiency;Third,the existence of the factor market distortion makes our country energy efficiency deviate from the energy efficiency in the perfect competition market,moreover,China’s energy efficiency has a lot of room for improvement.Finally,this paper puts forward some suggestions to improve the energy efficiency of our country:First of all,to accelerate the market reform of the elements of the market;Secondly,with the reform and innovation to promote energy development vitality;Finally,pay attention to other factors that affect the energy efficiency.