Sustainable Energy Consumption in China and India

Research Project , Research Report 2004

Toru IWWAMI Faculty of Economics, The University of Tokyo

Abstract

The economic growth in China and India together with their enormous population has so far increased, and would still more rapidly increase, energy consumption. Moreover, to raise the standard of living of the poor, extension of commercial energy use is indispensable, in particular in India where the income level is lower and dependence on biomass is higher. In order to realize sustainable energy use, raising efficiency is the primary objective. In China, the data of energy efficiency seems to be overestimated, but seen from the provincial comparison, there is surely a positive correlation between income level and energy efficiency. As for energy policy, public intervention in energy production and consumption leads to lower efficiency, and would be better modified and/or removed. Social policy to households and locals should not be undertaken by the price manipulation. Direct subsidies would be more appropriate measures.

Keywords:

China, India, energy efficiency, commercial energy, biomass, subsidies