Energy Efficiency Estimation Based on Bayesian Method and Industrial Economic Transition: Taking Shandong as an Example

  •  Yingying Wu    


This paper studied the total factor energy efficiency of industrial sector’s in Shandong. First, theoretical models of stochastic frontier approach on energy efficiency were structured, and then the referred parameters were estimated by using panel data of thirty-seven industries in Shandong from 2006 to 2013 and Bayesian estimation method. Finally Tobit model was applied to empirically study the influencing factors on energy efficiency of industrial sector’s. The study indicates that: (1) The input of capital and energy is notably positively correlative to output, while the input of labor quantity is negatively correlative to output. This means labor redundancy exist in industrial sectors. (2) Chemical industry, machinery industry, equipment manufacturing industry and food processing industry which have high energy efficiency should be further developed, especially marine chemical industry and marine biological medicine should be focused on to realize traditional industry upgrading. (3) Enterprise scale, international trade, the level of foreign investment and technology progress are notably positively relative to energy efficiency, while the proportion of state-owned economy have negative impact on energy efficiency. Therefore, it is necessary for further improvement in industrial energy efficiency in Shandong to decrease the proportion of stated-owned, encourage private capital entrance, extend opening up, and speed up the technical innovation.

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