This paper uses province-level cross-section data to explore the relationship between energy consumption and economic activity in China. Our key Jinding 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.
AdamsF.G.MiovicP. (1968). “On Relative Fuel Efficiency and the Output Elasticity of Energy Consumption in Western Europe.” Journal of Industrial Economics17(1): 41-56.
2.
AngB.W. (1987). “A Cross-Section Analysis of Energy-Output Correlation.” Energy Economics9(4): 274-286.
3.
BarroR.J.Sala-i-MartinX. (1992). “Regional Growth and Migration: A Japan-U.S. Comparison.” NBER Working Paper, No. 4038.
4.
BarroR.J.Sala-i-MartinX. (1992). “Convergence.” Journal of Political Economy100(2): 223-251.
5.
China Statistical Bureau (1986, 1989, 1991). China’s Energy Statistical Year Book [Zhongguo Nengyuan Tongji Nianjian], Beijing: China Energy Press.
6.
China Statistical Bureau (1984-1990). China Statistical Year Book [Zhongguo Tongji Nianjian]. Beijing: China Statistical Press.
7.
DunkerleyJ. (1982). “Estimation of Energy Demand: The Developing Countries.” The Energy Journal3(2): 79-99.
8.
LiuS. (1991). “A Research Report on Coal Pricing.” Cost &Price [Chengben yu Jiage] January: 35-45 (in Chinese).
9.
MoroneyJ. (1989). “Output and Energy: An International Analysis.” The Energy Journal10(3): 1-18.
10.
NaughtonB. (1988). “The Third Front: Defence Industrialization in the Chinese Interior.” The China Quarterly115: 351-386.
11.
OwenA.O.NealP.N. (1989). “China’s Potential as an Energy Exporter.” Energy Policy17(5): 485-500.
12.
PindyckR.S.RubinfeldD.L. (1981). Econometric Models and Economic Forecasting, 2nd ed. New York, NY: McGraw-Hill.
13.
ProopsJ.L.R. (1984). “Modeling the Energy-Output Ratio.” Energy Economics6(1): 47-51.
14.
ReisterD. (1987). “The Link between Energy and GDP in Developing Countries.” Energy12(6): 427-433.
15.
SmilV. (1988). Energy in China’s Modernization: Advances and Limitations. Armonk, NY: M.E. Sharpe.
16.
ZilberfarbB.-Z.AdamsF.G. (1981). “The Energy - GDP Relationship in Developing Countries.” Energy Economics3(4): 244-248.
