This paper uses the relative price method to study China′s energy market segmentation with the energy price data of various provinces and cities in China from 2004 to 2015 as an example, and uses the DEA method to investigate the efficiency of China′s energy market. Based on theoretical analysis, the influencing factors of China′s energy market efficiency are quantitatively studied. The main conclusions of the study are as follows:

First, the segmentation of the Chinese market presents an inverted U-shaped curve, with a peak in 2007. The level of market segmentation remained relatively stable after 2009. The market segmentation level of energy export regions is always higher than that of energy import regions.

Second, the trend of China′s total factor energy efficiency shows an "N" shape. The total factor energy efficiency of the energy import regions is significantly higher than that of the energy export regions. China has a significant "energy efficiency curse", that is, the more abundant the energy resource endowment, the lower the total factor energy efficiency of the region.

Third, market segmentation is the most important factor affecting total-factor energy efficiency, and reducing the level of energy market segmentation is conducive to the improvement of total-factor energy efficiency. From a national perspective, for every 1% increase in energy market segmentation, total factor energy efficiency will drop by 4.09%. 97.59% of the sample points indicate that reducing the level of market segmentation is conducive to the improvement of total factor energy efficiency. The decline in the proportion of coal consumption in primary energy consumption is conducive to improving total factor energy efficiency.

Fourth, from the perspective of the country and energy import regions, the decline of the secondary industry′s share of GDP in added value is conducive to the improvement of total factor energy efficiency, but the energy export regions are completely opposite. 

Based on the above conclusions, the policy recommendations of this article mainly include: First, reduce the level of energy market segmentation and promote the opening of the energy market. Second, reform the consumer subsidy method that lowers energy prices, change the problem of excessive subsidies on the production side and improper subsidy methods, improve the pertinence and transparency of subsidies, and gradually reduce subsidies for fossil energy, which will help prevent inefficient use of energy. Third, promote demand-side management (DSM) measures such as energy performance contracting (EPC) and white certificate trading (TWC), and increase resource tax revenue to reflect scarcity and environmental costs. In addition, promoting the marketization of coal prices and breaking the power industry monopoly will help reduce the proportion of coal consumption in primary energy consumption and improve energy efficiency. Finally, energy export regions can take advantage of their own resource endowments to vigorously promote technological upgrades to break the "energy efficiency curse".

 

 energy market fragmentation, total-factor energy efficiency, DEA