Energy Intensity and Its Determinants in China's Regional Economies

This paper contributes to the existing literature as well as policy debates by examining energy intensity and its determinants in China’s regional economies. The analysis is based on a comprehensive database of China’s regional energy balance constructed for this project. Through its focus on regional China, this study extends the existing literature which mainly covers nationwide studies. It is found in this paper that energy intensity declined substantially in China. The main contributing factor is the improvement in energy efficiency. Changes in the economic structure have so far affected energy intensity modestly. Thus there is considerable scope to reduce energy intensity through the structural transformation of the Chinese economy in the future.