A weighted Gini coefficient and Theil index-based approach for estimating the spatial disparity in energy efficiency in China

Scientific and rational analyses of inter-regional disparities in energy efficiency and their evolution aids in identifying benchmarks, exploiting energy-saving potential, and constructing energy-saving policies. This paper analyses the causes and development of the inequality in energy intensity among China's 29 regions during the period from 1985 to 2010. It develops a novel approach that redefines regional weights to estimate China's spatial disparity in energy efficiency based on the Gini coefficient and Theil index, and discusses the contributions of inter- and intra-regional disparities through a decomposition model of the Theil index. The results show that although China has noticeable regional disparities, the gaps have gradually narrowed since 2004. Regarding decomposition, intra-regional disparities have played a core role in the overall disparity, except during the period from 1995 to 1999. This new approach improves the traditional methods of evaluating regional disparities in energy efficiency.