Analysis of the Administrative Cost of Present Energy Conservation: A Case Study of Hebei Province

This paper, based on clustering methodology, analyzes the administrative measures taken by Hebei Province to complete the mission of energy conservation in industry since the Eleventh Five-Year Plan. Such measures include three aspects: a series of regulations and projects related to industrial energy conservation implemented by relevant government departments; province-wide conferences specifically about industrial energy conservation held many times; but joint between the provincial government and the key enterprises built to supervise their fulfillment of the objective of industrial energy conservation. This analysis exposes that the remarkable effects of industrial energy conservation of Hebei Province are paid off by vast cost of administrative decision cost, executive cost and organizing cost. To lower the administrative cost of industrial energy conservation, long-term mechanism concerning policies in industry, tax, finance and science & technology should be established.