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Energy Consumption and Economic Activity in China

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  • Chuanlong Tang
  • Sumner J. La Croix

Abstract

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.

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Bibliographic Info

Article provided by International Association for Energy Economics in its journal The Energy Journal.

Volume (Year): Volume14 (1993)
Issue (Month): Number 4 ()
Pages: 21-36

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Handle: RePEc:aen:journl:1993v14-04-a02

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Cited by:
  1. Cattaneo, Cristina & Manera, Matteo & Scarpa, Elisa, 2011. "Industrial coal demand in China: A provincial analysis," Resource and Energy Economics, Elsevier, vol. 33(1), pages 12-35, January.
  2. Bukhari M.S. Sillah & Hamad M.H. Al-Sheikh, 2012. "Income, Price, and Government Expenditure Elasticities of Oil in the Gulf Cooperation Council Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 2(4), pages 333-341.

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