China’s Structural Energy Conservation: Analysis and Proposals

Given the increasing dependence of development on energy consumption, an understanding of the rules and trends of national energy consumption is required for boosting social energy conservation. By using two models -- the structural evolution energy consumption model and the structural evolution per-unit energy consumption model, this article attempts to make an international comparison of the industrial structure development versus energy consumption patterns in the United States, the United Kingdom, France, Germany, Japan, and India. The results of this analysis indicate that the dominance of secondary industry over the industrial structure evolution process noticeably accelerates national energy consumption at the initial stage of modernization. Subsequently, a slowdown in energy consumption as a result of industrial structure development yields effects as the diversification process speeds up. Under such influence, energy consumption per unit of GDP follows an inverted U-shaped curve from rise to decline. As one of the world’s major energy producers and consumers, China has long employed a one- sided sector development policy. Under the influence of this policy, national energy conservation endeavors have been inhibited by the rigidity in its industry structural evolution. Thus, in China, energy consumption per unit of GDP has remained at a high level.