China's energy policy in transition: pressures and constraints

In any country, but particularly in a transition economy, energy policy comprises two components: measures to address short-term goals in the energy sector, and longer-term policies to reform the sector. Whilst the nature of the short-term measures are quite likely to be driven by energy considerations, any long-term policies for substantial reform of the energy sector may be driven and constrained by forces from outside the sector. This article provides an analysis of China's evolving energy policy, identifying a range of factors which appear to influence the formulation and implementation of long-term energy policy in China. Such factors include a range of political, institutional and policy considerations, many of which lie outside the energy sector. Their influence is examined through a number of case studies: the changing structure of the energy sector; the formulation of energy policy; security of energy supply; and energy conservation and energy efficiency. The analysis explains why the Chinese government has made relatively little progress in reforming the energy sector, and seemingly prefers to undertake periodic ad-hoc adjustments rather than to formulate a coherent strategy. At present there is little sign that the government's approach will change in the near future. (Author)