『Abstract
　The rapid growth of energy demand, the lagging growth of energy production and rising pollution problems have raised concerns in several policy areas, including the availability and cost of energy supply and the possibility of further adverse impacts on the environment. This paper begins with an overview of recent developments in energy demand and supply in China. Using a traditional demand elasticity approach, it analyzes the elasticity of each of four major energy end uses and the potential for adjustments in their relationships. The paper concludes with suggestions for public policy to meet the challenge of growing energy demand and implications for the private sector, including both private and foreign investments.

Key words: China; elasticity; energy; investment』

I. Introduction
II. Recent development
III. Economic growth and energy demand
IV. Negative externality of energy consumption and elasticity of carbon dioxide emissions
V. Energy demand elasticity in comparison and the structure of energy use
　1. Use for energy transformation
　2. Industrial use
　3. Residential use
　4. Transportation use
VI. Energy supply and challenges for China's energy industry
　1. Restructuring coal production
　2. Pushing oil production and imports
　3. Expanding natural gas supply
　4. Investing more in hydropower
　5. Quickening the development of nuclear power
VII. Implications for public policy
VIII. Implications for private and foreign investments
References