Page 17 - Energy Efficiency Policies in China and India - A Research Paper
P. 17
Energy efficiency policies in
China and India
In this regard, improving the efficiency of energy use is a leading option to achieve better
energy security, improve industrial profitability and competitiveness, and reduce the overall
energy sector impacts on local air pollution and climate change, especially for emerging
developing economies such as China and India, as they seek to exploit their resource base to
reduce poverty and support sustainable growth:
• Energy access: Energy efficiency can help countries to expand access, effectively
enabling them to supply power to more people through the existing energy infrastructure.
• Energy security: as a domestic measure that reduces reliance on imported energy, energy
efficiency programs are typically a key part of national efforts to improve the security of
future energy supplies.
• Development/growth: Many energy efficiency measures are cost effective. Costs vary
among technologies and countries where energy efficiency measures are implemented,
but often are only one-quarter to one-half the comparable costs of acquiring additional
energy supply. Thus, energy efficiency has a variety of positive impacts that support
economic growth, for example by improving industrial productivity and reducing fuel
import bills.
• Affordability/poverty alleviation: Energy efficiency can increase energy affordability for
poorer families by reducing the cost of lighting, heating, refrigeration. etc. (IEA, 2015)
• Local pollution: Energy efficiency (both supply side and end-use) can help to reduce the
use of energy – and lower associated emissions – while supporting economic growth.
• GHG emission mitigation: Realizing the economic potential of energy efficiency is a
central pillar of a cost-effective strategy to mitigate climate change and achieve a peak in
global greenhouse-gas emissions by 2020 (IEA, 2015). According to IEA’s estimates, to
achieve the 2 degree target, annual emissions need to be reduced by over 10 GtCO2 by
2050 compared with business as usual, in which the contribution of energy efficiency (both
from end-use sector and power sector) will exceed 40%.
Energy intensity (amount of energy used per unit of GDP produced) at purchasing power
parity (PPP) is used as a proxy to explain the changes in energy efficiency since efficiency
improvements in processes and technologies contribute to changes in energy intensity. Figure
2 depicts the energy intensities taken at GDP PPP for the time period of 2000 and 2012 for
India, China, the European Union, the United States, and Japan. The maximum decline in
energy intensity has been for China, followed by India. Over the ten year period, for the world
overall, the value of energy intensity has remained approximately the same.
02 Research Paper
China and India
In this regard, improving the efficiency of energy use is a leading option to achieve better
energy security, improve industrial profitability and competitiveness, and reduce the overall
energy sector impacts on local air pollution and climate change, especially for emerging
developing economies such as China and India, as they seek to exploit their resource base to
reduce poverty and support sustainable growth:
• Energy access: Energy efficiency can help countries to expand access, effectively
enabling them to supply power to more people through the existing energy infrastructure.
• Energy security: as a domestic measure that reduces reliance on imported energy, energy
efficiency programs are typically a key part of national efforts to improve the security of
future energy supplies.
• Development/growth: Many energy efficiency measures are cost effective. Costs vary
among technologies and countries where energy efficiency measures are implemented,
but often are only one-quarter to one-half the comparable costs of acquiring additional
energy supply. Thus, energy efficiency has a variety of positive impacts that support
economic growth, for example by improving industrial productivity and reducing fuel
import bills.
• Affordability/poverty alleviation: Energy efficiency can increase energy affordability for
poorer families by reducing the cost of lighting, heating, refrigeration. etc. (IEA, 2015)
• Local pollution: Energy efficiency (both supply side and end-use) can help to reduce the
use of energy – and lower associated emissions – while supporting economic growth.
• GHG emission mitigation: Realizing the economic potential of energy efficiency is a
central pillar of a cost-effective strategy to mitigate climate change and achieve a peak in
global greenhouse-gas emissions by 2020 (IEA, 2015). According to IEA’s estimates, to
achieve the 2 degree target, annual emissions need to be reduced by over 10 GtCO2 by
2050 compared with business as usual, in which the contribution of energy efficiency (both
from end-use sector and power sector) will exceed 40%.
Energy intensity (amount of energy used per unit of GDP produced) at purchasing power
parity (PPP) is used as a proxy to explain the changes in energy efficiency since efficiency
improvements in processes and technologies contribute to changes in energy intensity. Figure
2 depicts the energy intensities taken at GDP PPP for the time period of 2000 and 2012 for
India, China, the European Union, the United States, and Japan. The maximum decline in
energy intensity has been for China, followed by India. Over the ten year period, for the world
overall, the value of energy intensity has remained approximately the same.
02 Research Paper
