An Analysis of Energy Utilization Efficiency in China

Abstract

This chapters aims to analyse China’s energy utilization efficiency and its variable trend, based on a constant price calculating methodology. It also analyses the causes of energy utilization deficiency from various aspects including supply and consumption, industrial structure and industrial energy utilization efficiency, direct and indirect import and export of energy and state systems and policies. The results show that in recent years the energy supply in China has been declining but its consumption continues to rise; the industrial structure has a negative effect on the efficiency of energy utilization; the share of the industrial sector and its energy utilization play a decisive role in the improvement of energy utilization efficiency in China; China’s export of high energy-consuming products and its low position in international labour division produce an unfavourable effect on its energy efficiency utilization. A weakening energy policy and the management system adopted by China have hampered any improvement in energy efficiency. This chapter also seeks to make an international comparison of energy efficiency worldwide. When comparing China’s energy utilization efficiency with other nations, there is great variance in the results due to the use of different calculating methods. However, there is no doubt that China has made a big step in improving its energy efficiency and the country is narrowing the gap in this field when compared to international standards. Finally, the chapter proposes measures to improve energy utilization efficiency, based on an acceleration of technological innovation, the conservation of a reasonable growth rate in the national economy, the optimization of the industrial structure and an improvement in the energy price mechanism.