Cross-Cutting Policy and Analysis
The China Energy Group is a leader in analyzing Chinese energy policy. We released the first studies outside China on its extensive programs to promote energy efficiency, showing a well funded program of investments in cost-effective energy-efficiency projects. This and other programs were crucial to decoupling economic and energy growth in China—a remarkable achievement for an industrializing country.
Ironically, economic reforms swept away much of the apparatus developed in the 1980s—including market-based incentives. China is reintroducing market-based incentives, and took a major step forward in establishing a legal basis for energy-efficiency work with the passage of the Energy Conservation Law in November 1997. We have prepared a report on developments in energy-efficiency regulations and programs since 1997.
Why the focus on China?
China is the second largest energy consumer in the world after the US. Of actual energy consumption shown here, 66% is coal, 23% is oil, 8% is hydropower, 3% is natural gas.
When we first began working in China 25 years ago, it was a minor player in the world energy, industrial, trade, and economic scene. However, it had just emerged from 30 years of autarky and reoriented its national development goal to rapid industrialization and modernization. Under autarky, energy was priced extremely low and used wastefully. As you can see from the chart, if the intensity of energy use in 1980 had not changed, while GDP had grown at the same rate in the last 25 years, China would already be consuming 50% more energy than the US and be the largest energy consumer and CO2 emitter in the world.
The difference between what might have happened and what actually happened is the result of a strong focus on energy efficiency, and because China hopes to once again quadruple GDP over the next 15 years, the importance to maintain this focus is as strong as ever, particularly as we approach the era of peak oil.
Our current cross-cutting policy and analysis research includes work on investment in energy infrastructure and energy efficiency and conservation; government procurement programs; energy service companies; national energy policy assessment including the National Energy Strategy released by the government in early 2005 and on national energy efficiency policy; analysis of past trends in energy consumption in China as well as of future scenarios; and our China Energy Databook accompanied by chapter summaries and analysis of recent trends.
China Energy Group reports on energy policy and analysis are available on the policy publications page.