IAEE Members and subscribers to The Energy Journal: Please log in to access the full text article or receive discounted pricing for this article.

Energy Consumption and Economic Activity in China

This paper uses province-level cross-section data to explore the relationship between energy consumption and economic activity in China. Our key finding is that the income elasticity of energy consumption is approximately 1.0. When a province exports energy or has significant amounts of heavy industry, its energy consumption is higher. However, income elasticities are similar across energy exporting and -importing provinces. Energy consumption is lower in coastal provinces than inland provinces, but the income elasticity is higher in the rapidly developing coastal provinces. We conclude that China's economy is unlikely to become significantly more energy-intensive during the 1990s.

Purchase ( $25 )

Energy Specializations: Energy and the Economy –Economic Growth and Energy Demand; Energy and the Economy – Resource Endowments and Economic Performance

JEL Codes: Q41: Energy: Demand and Supply; Prices, Q40: Energy: General

Keywords: Energy demand, China, Economic growth, Energy intensity

DOI: 10.5547/ISSN0195-6574-EJ-Vol14-No4-2

Published in Volume14, Number 4 of the bi-monthly journal of the IAEE's Energy Economics Education Foundation.


© 2023 International Association for Energy Economics | Privacy Policy | Return Policy