China's Energy Reduction Policy System: Outcomes and Responses of Local Governments

The paper examines the outcomes of and responses to the policy system (the obligatory indicator system) used by the Chinese central government to induce provincial governments to meet energy-saving targets during the 11th Five Year Plan. The institutional mechanisms underlying the policy system that promotes implementation of energy saving are identified An analytical framework is developed to identify the strategic responses of provincial governments and the factors shaping their responses. Comprehensive sets of provincial data on economic and energy performance are collected and analyzed. The findings indicate that the central government's credible commitment to implement the policy system drove the initially disparate attitudes of provinces to a converged outcome. However, the outcome is significantly constrained by provinces' initial energy intensity. In particular, provincial governments have applied strategies of ceremonial implementation, efficiency-oriented efforts and effectiveness-focused efforts to attain specific targets. This paper discusses the implications in comparison with the modified obligatory indicator system in the 12th Five Year Plan and offers policy suggestions accordingly.