
ARTICLES
Chinese Journal of Population, Resources and Environment 2008 Vol. 6 No.4
41
Scenario Formation of Energy Demand and CO
2
Emissions
for Sustainable China
Wei Baoren
1
, Yagita Hiroshi
2
1. Suzhou University of Science and Technology, Suzhou Jiangsu 215011, China;
2. Nippon Institute of Technology, Saitama Pref. 345-8501, Japan
consumption is worldwide concerned.
We developed a GDP model of China that can be used
for the long-term forecast based on empirical production
function. This paper started with GDP forecast, compared
the energy consumption courses of some developed coun-
tries, and accordingly formed the energy consumption and
CO
2
emission scenarios in favor of constructing China’s
harmonious society.
Energy demand and CO
2
emission scenario of sustain-
able development is one of the scenarios we formed. From
those scenario analyses, we can get the general trend of
China’s energy consumption and CO
2
emissions, which of-
fers a long-term object for China’s GDP growth and energy
conservation and emission reduction, and is helpful for
making scientific decisions on future economic develop-
ment.
2 Co-integration analysis of GDP, capital stock
and urbanization rate
Study on co-integration analysis was rstly brought for-
ward by Engle-Granger and has been deemed to be a great
breakthrough on econometrics methodology. Co-integration
analysis researches on economic variables at home and
abroad are a hot topic and research domain is very broad
(Zhang et al., 1997; Han, 1998; Lin, 2001; Han et al., 2004;
Kaufmann, 2004; Ma et al., 2004; Wei, 2007). In order to
prove that there is a strict correlativity among the three
variables, we made co-integration analysis on the three
time series of GDP, capital stock and urbanization rate
using computer software EView4.1 (Ma, 2004; Zhang
2004).
2.1 Unit root test
While a d-time difference time series that does not have
Abstract:
Co-integration theory has been employed in this
paper and Granger causes are found between urbanization rate
and GDP, between capital stock and GDP. Scenario analysis
of GDP is performed using the GDP model established in the
paper. The energy consumptions in Germany, Japan and other
developed countries are analyzed and compared with the energy
consumption in China. Environmental friendly scenario of en-
ergy demand and CO
2
emissions for sustainable China has been
formed based on the results of comparison. Under environmen-
tal friendly scenario, the primary energy consumption will be
4.31 billion ton coal equivalence (tce) and CO
2
emissions will
be 1.854 billion t-c in 2050; energy per capital will be 3.06 tce
that is 1.8 times of energy consumed in 2005 in China and 51%
of consumed energy per capital in Japan in 2003. In 2050, the
energy requirement of unit GDP will be 20% lower than that
of Germany in 2003, but will be still 37% higher than that in
Japan in 2003. It is certain that to fulfill the environmental
friendly Scenario of energy demand and CO
2
emissions is a
difficult task and it needs long term efforts of the whole so-
ciety, not only in production sectors but also in service and
household sectors.
Key words:
energy demand, CO
2
emissions, scenario analysis, co-
integration
1 Introduction
With the rapid economic development, the energy
demand in China is increasing largely. China consumed
2.233 billion ton coal equivalence (tce) that was numbered
two in the world in 2005. China’s future GDP and correla-
tive energy consumption are extraordinarily important for
its sustainable development. China, whose greenhouse gas
emission per capita is quite low, is likely going to be the
largest country of greenhouse gas emissions within the rst
half of this century. Therefore, the issue of China’s energy
Corresponding author: Wei Baoren (baoren_wei@yahoo.com)
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