Since the late-1970s, many difficult problems have emerged in the energy sector in Mainland China. The biggest problem at present is ensuring an adequate supply of energy to meet domestic demand. Energy planners are currently targeting investment funds on securing adequate supplies of energy in the long run, but in the meantime shortages remain acute. The conservation and efficient use of energy is thus one of the most important economic issues in Mainland China today.
In this study, first a brief history of the growth of energy supply and demand is presented for the past thirty years. Beginning from a position of energy deficiency in the 1950s, Mainland China achieved self-sufficiency in the 1960s and actually became a net exporter of energy in the 1970s. In the 1980s, however, severe shortages have developed. In the following section, the administrative, economic, and educational measures used to promote energy efficiency are described.
The third section concentrates on the energy effects resulting from changes in the production mix and efficiency gains made from 1978-1983. According to published Mainland Chinese sources, 80 percent of the energy conservation achieved can be attributed to the former, leaving only 20 percent to the latter. The recent emphasis on light industry, rather than heavy industry, has naturally helped to bring about a reduction in energy consumption. Efficiency gains have been generated from better management practices, improved equipment, and the introduction of new technology.
In addition to conservation efforts on a macro scale, the study also analyzes energy-conservation efforts in the iron and steel, chemical, and electricity industries. These three large energy-consuming sectors have made gains. in the energy conservation area. Such improvement is limited, however, and in the future further improvement can only be achieved through technical renovation and increased capital investment.
