Directional nature of technological progress in the petrochemical industry prompting energy marginal substitution

Kód výsledku v IS VaVaI

<a href="https://www.isvavai.cz/riv?ss=detail&h=RIV%2F00216305%3A26210%2F24%3APU155661" target="_blank" >RIV/00216305:26210/24:PU155661 - isvavai.cz</a>

Výsledek na webu

<a href="https://www.sciencedirect.com/science/article/pii/S0360544224029141" target="_blank" >https://www.sciencedirect.com/science/article/pii/S0360544224029141</a>

DOI - Digital Object Identifier

<a href="http://dx.doi.org/10.1016/j.energy.2024.133139" target="_blank" >10.1016/j.energy.2024.133139</a>

Jazyk výsledku

angličtina

Název v původním jazyce

Directional nature of technological progress in the petrochemical industry prompting energy marginal substitution

Popis výsledku v původním jazyce

Technological progress does not uniformly benefit all industries or factors' productivity levels. The energy productivity and labour employment situation in the Chinese petrochemical industry have not witnessed substantial improvements in the last decade. The literature has overlooked the importance of recognizing the directional nature of technological progress, which could enable a more strategic approach to economic development, resource allocation, and policy formulation. This study, guided by the core principles of endogenous economic growth theory, aims to uncover the influencing mechanisms and effects of technological progress bias on energy and employment by extending a theoretical model to account for energy, capital, and labour factors. The results reveal: (1) From 2000 to 2021, the relationship between labour, capital, and energy factors in the Chinese petrochemical industry has been predominantly complementary, with technological progress favouring labour-augmenting that is increasing labour productivity; (2) The gross complementarity of production factors leads to labour-augmenting technological progress, ultimately biased towards energy and capital factors; (3) Energy-capital-biased technological progress encourages producers to invest more energy and capital to substitute for labour factors, leading to a limited improvement in energy productivity and a consistent decline in labour employment since 2011. This study further corroborates that without government intervention, it would lead to improper factor allocation in the industry, resulting in market failure. Finally, corresponding policy recommendations are proposed.

Název v anglickém jazyce

Directional nature of technological progress in the petrochemical industry prompting energy marginal substitution

Popis výsledku anglicky

Technological progress does not uniformly benefit all industries or factors' productivity levels. The energy productivity and labour employment situation in the Chinese petrochemical industry have not witnessed substantial improvements in the last decade. The literature has overlooked the importance of recognizing the directional nature of technological progress, which could enable a more strategic approach to economic development, resource allocation, and policy formulation. This study, guided by the core principles of endogenous economic growth theory, aims to uncover the influencing mechanisms and effects of technological progress bias on energy and employment by extending a theoretical model to account for energy, capital, and labour factors. The results reveal: (1) From 2000 to 2021, the relationship between labour, capital, and energy factors in the Chinese petrochemical industry has been predominantly complementary, with technological progress favouring labour-augmenting that is increasing labour productivity; (2) The gross complementarity of production factors leads to labour-augmenting technological progress, ultimately biased towards energy and capital factors; (3) Energy-capital-biased technological progress encourages producers to invest more energy and capital to substitute for labour factors, leading to a limited improvement in energy productivity and a consistent decline in labour employment since 2011. This study further corroborates that without government intervention, it would lead to improper factor allocation in the industry, resulting in market failure. Finally, corresponding policy recommendations are proposed.

Druh

J_imp - Článek v periodiku v databázi Web of Science

CEP obor

—

OECD FORD obor

20300 - Mechanical engineering

Projekt

<a href="/cs/project/EF15_003%2F0000456" target="_blank" >EF15_003/0000456: Laboratoř integrace procesů pro trvalou udržitelnost</a><br>

Návaznosti

P - Projekt vyzkumu a vyvoje financovany z verejnych zdroju (s odkazem do CEP)

Rok uplatnění

2024

Kód důvěrnosti údajů

S - Úplné a pravdivé údaje o projektu nepodléhají ochraně podle zvláštních právních předpisů

Název periodika

Energy

ISSN

0360-5442

e-ISSN

1873-6785

Svazek periodika

310

Číslo periodika v rámci svazku

310

Stát vydavatele periodika

GB - Spojené království Velké Británie a Severního Irska

Počet stran výsledku

13

Strana od-do

133139-133139

Kód UT WoS článku

001322473400001

EID výsledku v databázi Scopus

2-s2.0-85204440154