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What can Indonesia learn from China's industrial energy saving programs?

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  • Michael T. Rock

Abstract

Even though Indonesia's CO 2 emissions are dominated by deforestation while China's are dominated by industry, Indonesia has much to learn from China's industrial energy saving programs. To begin with, it is only a matter of time before Indonesia's emissions from fossil fuels overtake those from deforestation. Given the long technological lock-in effects of energy systems and industries, Indonesia needs to think now about how it will tackle this problem. There are other reasons for believing that Indonesia might learn something from China -- the CO 2 intensities of GDP, of industry and of cement production have been rising in Indonesia, while they are falling in China. China's better intensity performance is due to policies that Indonesia would do well to follow -- adopting a technological catch-up industrial development strategy; raising energy prices to scarcity values; liberalising domestic markets and opening the economy to trade and investment; and mounting a massive energy saving program.

Suggested Citation

  • Michael T. Rock, 2012. "What can Indonesia learn from China's industrial energy saving programs?," Bulletin of Indonesian Economic Studies, Taylor & Francis Journals, vol. 48(1), pages 33-55, April.
    • Handle: RePEc:taf:bindes:v:48:y:2012:i:1:p:33-55
    DOI: 10.1080/00074918.2012.654483
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    References listed on IDEAS

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    1. Regina M. Abrami & Yu Zheng, 2010. "The New Face of Chinese Industrial Policy: Making Sense of Anti-Dumping Cases in the Petrochemical and Steel Industries," Harvard Business School Working Papers 11-042, Harvard Business School.
    2. Lardy,Nicholas R., 1978. "Economic Growth and Distribution in China," Cambridge Books, Cambridge University Press, number 9780521219044.
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    Cited by:

    1. Karen Fisher-Vanden, Yong Hu, Gary Jefferson, Michael Rock and Michael Toman, 2016. "Factors influencing energy intensity in four Chinese industries," The Energy Journal, International Association for Energy Economics, vol. 0(China Spe).
    2. Satya Widya Yudha & Benny Tjahjono & Athanasios Kolios, 2018. "A PESTLE Policy Mapping and Stakeholder Analysis of Indonesia’s Fossil Fuel Energy Industry," Energies, MDPI, vol. 11(5), pages 1-22, May.
    3. Lo, Kevin, 2014. "A critical review of China's rapidly developing renewable energy and energy efficiency policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 29(C), pages 508-516.
    4. Rock, Michael T. & Toman, Michael & Cui, Yuanshang & Jiang, Kejun & Song, Yun & Wang, Yanjia, 2013. "Technological learning, energy efficiency, and CO2 emissions in China's energy intensive industries," Policy Research Working Paper Series 6492, The World Bank.

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