China Energy Outlook 2020 - Flipbook - Page 20
China’s new urban residents require accommodation, schooling, health care, appliances,
transportation, food, clothing, water, sewerage, and other services, all of which take energy to
produce or use. Rising income levels and demand for greater energy services and amenities of
urban dwellers result in 1.4 times higher consumption of commercial (non-biomass) energy
than rural residents (NBS, 2018a).7 Urban households have much higher ownership rates for
major household appliances including clothes washers, refrigerators, televisions, air
conditioners, computers and microwaves than rural residents. For example, the saturation rate
of air conditioners was 140 units per 100 urban households but was only about 60 units per 100
rural households in 2018 (NBS, 2019b).
China’s growing urban population also accounts for an even larger share of energy and CO2
emissions embodied in urban goods and infrastructure, which requires vast amounts of cement
and other construction materials for housing, commercial buildings, highways, transportation,
and related urban services. Chinese cities experienced a construction boom over the past two
decades, driven in part by stimulus funding after the 2008 global financial crisis but also
sustained and rapid urbanization.
China’s gross domestic product (GDP) has grown at extremely variable rates since 1980. On
average, GDP grew 9.5% per year from 1980 to 2018. But growth was even higher during 19821988 (11.8%), 1991-1996 (12.2%), and 2003-2007 (12.1%). Currently, China is experiencing a
slow-down in GDP growth with values under 7% per year since 2015 and the growth rate
between 2017 and 2018 was 6.6%, the lowest it has been since 1990.
Primary energy consumption per capita in China has increased more than five times since 1980
(Figure 1-3). This increased demand for energy is driven by increased income per person and
increased urbanization, both of which lead to increased use of energy for heating and cooling
buildings, powering appliances and other equipment, and transporting people and goods
around China. Growing urbanization further leads to increased need for industrial products
such a cement, steel, glass, and aluminum to build the buildings and infrastructure needed to
support wealthier urban dwellers.
The rate of growth in per capita primary energy use has been different across different periods
of time. The fastest growth occurred between 2002 and 2005 when energy use per capita grew
an average of 13.5% per year and the economy was expanding by an average of 10% per year.
7
When use of biomass is included, rural energy per capita is higher than urban.
6