Image Credit: South China Morning Post
Energy intensity is a macroeconomic measure of the energy required per unit of economic output. It is commonly expressed as units of energy per unit of Gross Domestic Product (GDP). For China, it is the amount of energy needed to produce each yuan of economic output.
According to official figures from Beijing, last year China burnt the equivalent of almost 108 tonnes of coal to produce each million yuan of economic output.
From 2005 to 2009, energy intensity fell by 16 percent in China. Do not be totally deceived though. The output of the service industries - retail businesses, media, financial services and banking all use much less energy than manufacturing and industrial businesses. The service industries have started to rise of late and have formed a greater share of overall economic output. As a result, energy intensity tends to decrease as a natural consequence of economic growth.
Energy intensity remains relatively high because of China's large-scale infrastructure projects such as high speed rail construction and hydro-electric dams. When energy is priced at a lower amount, there is less of a need to conserve and use it more efficiently. The Germans have been efficient in almost every aspect of their economy.
In Germany, conservation of energy has not necessarily slowed down economic growth. Using energy efficiently has led to better allocation of it, which leads to better transmission and distribution of electricity across the nation. This keeps the economy going (it's amazing how much you can save with smart energy allocation) and does little harm to the environment.
Another example: Italy 's annual energy intensity of 122.8 tons of oil equivalent makes it the most energy efficient country in the G8 and one of the most energy efficient in the industrial world. This is mainly due to the traditionally high energy prices which have resulted in more efficient company and consumer behaviours. No one likes higher energy prices (whether you're an industry or household resident). But higher prices force you to innovate (and conserve) and design products that are less energy intensive. This drives competition and overtime, the entire economy benefits and people adjust accordingly.
China’s wasteful industrial and chemical plants are what keep energy intensity high. They help keep economic growth in check but have negative ramifications on the environment. Adopting environmental regulations would risk slowing down such growth. It seems that the Chinese Communist Party is content with how the economy is growing (now the world's second largest) but be critical and ask yourself if such growth is truly sustainable given the population size, political system, increasing numbers of university graduates and outstanding human rights cases.
Key message: Through innovation and smarter design, energy efficiency will get better in China, but it is going to be an extremely difficult task given the current economic growth.
According to official figures from Beijing, last year China burnt the equivalent of almost 108 tonnes of coal to produce each million yuan of economic output.
From 2005 to 2009, energy intensity fell by 16 percent in China. Do not be totally deceived though. The output of the service industries - retail businesses, media, financial services and banking all use much less energy than manufacturing and industrial businesses. The service industries have started to rise of late and have formed a greater share of overall economic output. As a result, energy intensity tends to decrease as a natural consequence of economic growth.
Energy intensity remains relatively high because of China's large-scale infrastructure projects such as high speed rail construction and hydro-electric dams. When energy is priced at a lower amount, there is less of a need to conserve and use it more efficiently. The Germans have been efficient in almost every aspect of their economy.
In Germany, conservation of energy has not necessarily slowed down economic growth. Using energy efficiently has led to better allocation of it, which leads to better transmission and distribution of electricity across the nation. This keeps the economy going (it's amazing how much you can save with smart energy allocation) and does little harm to the environment.
Another example: Italy 's annual energy intensity of 122.8 tons of oil equivalent makes it the most energy efficient country in the G8 and one of the most energy efficient in the industrial world. This is mainly due to the traditionally high energy prices which have resulted in more efficient company and consumer behaviours. No one likes higher energy prices (whether you're an industry or household resident). But higher prices force you to innovate (and conserve) and design products that are less energy intensive. This drives competition and overtime, the entire economy benefits and people adjust accordingly.
China’s wasteful industrial and chemical plants are what keep energy intensity high. They help keep economic growth in check but have negative ramifications on the environment. Adopting environmental regulations would risk slowing down such growth. It seems that the Chinese Communist Party is content with how the economy is growing (now the world's second largest) but be critical and ask yourself if such growth is truly sustainable given the population size, political system, increasing numbers of university graduates and outstanding human rights cases.
Key message: Through innovation and smarter design, energy efficiency will get better in China, but it is going to be an extremely difficult task given the current economic growth.
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