Since 1996, China's energy output has dropped by 17%, while primary energy
use has fallen by 4%, driven almost entirely by shrinking output from coal
mines and declining direct use. Since China is the world's second-largest e
mitter of greenhouse gases, it is important to understand the: sources of t
his apparent transformation, and whether it portends a permanent change in
patterns of energy use. This remarkable reversal of the long-term expansion
of energy use has occurred even as the economy has continued to grow, albe
it more slowly than in the early 1990s. Generation of electric power has ri
sen, implying a steep fall in end uses, particularly in industry. Available
information points to a variety of forces contributing to this phenomenon,
including rapid improvements in coal quality, structural changes in indust
ry, shutdowns of factories in both the state-owned and non-state segments o
f the economy, improvements in end-use efficiency, and greater use of gas a
nd electricity in households. A combination of slowing economic growth, ind
ustrial restructuring, broader economic system reforms, and environmental a
nd energy-efficiency policies has apparently led to at least a temporary de
cline in, and perhaps a long-term reduction in the growth of energy use, an
d therefore greenhouse gas emissions. (C) 2000 Elsevier Science Ltd. All ri
ghts reserved.