『Abstract
To reduce its consumption of coal and oil in its primary energy
consumption, China promotes the development of renewable energy
resources. I have analysed the long-term relationship among China's
primary energy consumption sources. Changes in coal consumption
lead those in the consumption of other energy sources in the long
term. Coal and oil fuels substitute for each other equally. The
long-term elasticities of China's coal consumption relative to
its hydroelectricity consumption were greater than one and nearly
equal during the two sample periods. Therefore, increased hydroelectricity
consumption did not imply a reduction in coal consumption. China
holds abundant hydroelectricity, wind and, solar energy potential.
China must prevent an excessive escalation of its economy and
resultant energy demand to realise a meaningful substitution of
coal with hydroelectricity. Moreover, China must develop and use
wind and solar energy sources. Natural gas can be a good substitute
for coal, given its moderate price growth and affordable price
levels.
Keywords: Energy consumption source; Renewable energy; Substitution』
1. Introduction
2. Methodology
3. Data
4. Empirical results
5. The renewable energy policy
6. Conclusions
Acknowledgements
Appendix A. Supporting information
References