Consumption-based multi-objective optimization model for minimizing energy consumption: A case study of China

Abstract

To minimize energy consumption while maintaining the economic growth, this paper proposed a novel consumption-based multi-objective optimization model (CMOM), which would provide a more systemic perspective than previous production-based model (PMOM). We have selected China as our study case. The results showed the CMOM performed better than the previous PMOM. The proposed CMOM can achieve higher economic growth and energy saving goals by the smaller adjustment of the current industrial structure. It indicated it was necessary to include the systemic influence of sectoral consumption demand on global energy consumption. The results also showed there were some principal sectors and economic linkages between sectors that played special roles in the optimization of the industrial structure. To achieve the energy saving and economic growth goals, some sectors should significantly reduce their total output such as Chemical Materials and Products, while other sectors could continue to increase their total outputs such as Construction. Some sectors should reduce inputs to themselves such as Processing of Non-ferrous Metals, while other sectors should significantly increase inputs to themselves such as Other Services. Non-metallic Mineral Products should increase inputs to Construction. These results suggest our method can provide key policy targets for optimizing the current industrial structure.