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China’s Technological Catch-Up StrategyIndustrial Development, Energy Efficiency, and CO2 Emissions$
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Michael T. Rock and Michael Toman

Print publication date: 2015

Print ISBN-13: 9780199385324

Published to Oxford Scholarship Online: January 2015

DOI: 10.1093/acprof:oso/9780199385324.001.0001

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Technological Change in China’s Paper Industry

Technological Change in China’s Paper Industry

Chapter:
(p.146) Chapter 7 Technological Change in China’s Paper Industry
Source:
China’s Technological Catch-Up Strategy
Author(s):

Michael T. Rock

Michael Toman

Publisher:
Oxford University Press
DOI:10.1093/acprof:oso/9780199385324.003.0007

In 1978 China’s paper industry was small, technologically backward, and energy intensive. Over the next three decades China slowly modernized this industry by closing small, obsolete facilities and encouraging mergers to reap economies of scale and scope; increasing domestic competition and opening the industry to trade and foreign investment; and increasing energy prices and requiring enterprises to reduce their energy intensity. Most critically, though, the Chinese government reformed incentives and institutions to encourage enterprises to adopt state-of-the-art technologies. One important side effect has been a large and rapid decline in energy and CO2 intensity in China’s paper industry, leading to a substantial delinking of paper production and CO2 emissions. This success has much to offer other countries in the early stages of their industrial revolutions. The Chinese experience highlights the need to put in place incentives and institutions that encourage enterprises to invest in building technological capabilities.

Keywords:   paper industry, technological capabilities, energy efficiency, market liberalization, state-of-the-art technologies

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