Regional Differences in China's Energy Efficiency and Conservation Potentials

This paper investigates the maximum energy efficiency level and the energy saving potentials in each region in China that can be practically attained at current economic and technological development levels. Most of the nation's energy efficient provinces are found along the coast of southeast China, while most of its least energy efficient provinces are in the hinterland that is rich in coal resources, and which depends heavily on coal consumption. China's low efficiency in energy resource allocation stems from its secondary industry, which is handicapped by the lowest energy efficiency and the most striking regional differentials. A comparison of the factors affecting the energy efficiency shows that the provinces being compared in this study differ tremendously in energy consumption structure, technological level of the secondary industry, and abundance of energy resources, and that the other factors are only adequate, rather than necessary, conditions. It is imperative to rectify the behaviors of provinces in balancing local energy allocation, to channel energy resources to energy efficient provinces, and to improve the national energy efficiency as a whole. When taking energy-saving steps, provinces must take into full consideration both the national and local factors that affect energy efficiency. Furthermore, it is unrealistic for China to set a unified energy saving goal for different provinces. Copyright The official journal of The Institute of World Economics and Politics, Chinese Academy of Social Sciences (CASS) 2007.