Decline in China's Coal Consumption Explained

In a post discussing the decline in China’s coal consumption, Fergus Green, London School of Economics, highlights the connection between the slowdown in energy demand growth and the change in China’s economic growth model from energy-intensive industries to high-tech manufacturing and services. Government policy is supporting non-fossil energy and limits on coal due to drivers such as climate change, energy security, air pollution, and pursuit of commercial opportunities. The post takes note of the recent expansion of coal-fired power plants, but says they are not being fully utilized, and that the government is aware of the situation and is planning a moratorium on new coal-fired power plants. (Professor Nicholas Stern and Fergus Green provide a detailed discussion of the turnaround in China’s coal consumption in a chapter contribution to the 2016 China Economic Update volume.)

Read more…