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The long-term relationships among China's energy consumption sources and adjustments to its renewable energy policy

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  • Zou, Gao Lu

Abstract

To reduce its consumption of coal and oil in its primary energy consumption, China promotes the development of renewable energy resources. I have analysed the long-term relationship among China's primary energy consumption sources. Changes in coal consumption lead those in the consumption of other energy sources in the long term. Coal and oil fuels substitute for each other equally. The long-term elasticities of China's coal consumption relative to its hydroelectricity consumption were greater than one and nearly equal during the two sample periods. Therefore, increased hydroelectricity consumption did not imply a reduction in coal consumption. China holds abundant hydroelectricity, wind and, solar energy potential. China must prevent an excessive escalation of its economy and resultant energy demand to realise a meaningful substitution of coal with hydroelectricity. Moreover, China must develop and use wind and solar energy sources. Natural gas can be a good substitute for coal, given its moderate price growth and affordable price levels.

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  • Zou, Gao Lu, 2012. "The long-term relationships among China's energy consumption sources and adjustments to its renewable energy policy," Energy Policy, Elsevier, vol. 47(C), pages 456-467.
  • Handle: RePEc:eee:enepol:v:47:y:2012:i:c:p:456-467
    DOI: 10.1016/j.enpol.2012.05.022
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    2. Xue, Bing & Ma, Zhixiao & Geng, Yong & Heck, Peter & Ren, Wanxia & Tobias, Mario & Maas, Achim & Jiang, Ping & Puppim de Oliveira, Jose A. & Fujita, Tsuyoshi, 2015. "A life cycle co-benefits assessment of wind power in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 338-346.
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    4. Chen, Shiyi & Santos-Paulino, Amelia U., 2013. "Energy consumption restricted productivity re-estimates and industrial sustainability analysis in post-reform China," Energy Policy, Elsevier, vol. 57(C), pages 52-60.

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