Agriculture Reference
In-Depth Information
equipment. This means that with the growth of per capita income of rural
households, new energy demand, especially the demand for high-quality
energy, will increase significantly. Between 1989 and 1995, the real per
capita net income of rural households increased from 253 Yuan to 318
Yuan (China Statistical Yearbook 1998; Asian Development Bank 2000),
while rural demand for high-quality energy grew rapidly. According to Li
and Zhang (1998) total commercial energy consumption for rural
household's living is projected to reach 375.9 Mtce by 2020. Coal,
electricity and oil consumption for rural household's living is expected to
reach respectively 229.1 Mtce, 135.3 Mtce and 11.5 Mtce by the year 2020
(Table 14.5).
Coal, which is available in most areas in rural China at low cost
and which provides 59 percent of total commercial energy demand in rural
China, is expected to continue to dominate the energy balance in rural
China for household's living. This corresponds to an increase in coal
consumption in rural China from 87.5 Mtce in 1995 to 229.1 Mtce in 2020,
with increasing pressure on the environment. Coal consumption is the main
source of local air pollution, acid rain and GHG emissions. Reducing the
rural economy's heavy reliance on coal may decrease local environmental
damage. Health damages and agriculture losses due to coal-related air
pollution in China are currently estimated to be as high as 6 percent of
GDP (World Bank 2000).
To lower the proportion of coal use in energy consumption in rural
China on a large scale, would involve a wide range of measures, including
more energy conservation and adoption of improved coal utilization
methods. Substitution of cleaner sources of energy for coal is ultimately
required to meet growing energy demands in an environmentally
sustainable way and renewable energy could play a role in meeting energy
demand in rural China.
Table 14.5 also indicates that rural electricity demand for
households is expected to grow faster than the other commercial energy
demand in rural areas. Economic development leads to increased reliance
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