ON RENEWABLE ENERGY IN RURAL CHINA - Economics of Sustainable Energy in Agriculture - page 202

energy. In addition, it is permitted to open joint ventures or establish
foreign-owned enterprises in the field of renewable energy.
Our study indicates that there is a huge potential for China to speed
up developing rural renewable energy. China's rural areas have abundant
potential of renewable energy resources. Nevertheless in 1995 renewable
energy consumption in rural China was only about 2.6 Mtce, accounting
for about 0.7% of total consumption of rural energy.
In addition, our study shows that with the rapid development of
China's rural economy, the scope for renewable energy will increase
significantly. In our study renewable energy consumption in rural China is
expected to increase from 2.6 Mtce in 1995 to possibly about 200 Mtce in
2020. The projection of renewable energy demand is based on projected
growth rate for agricultural income and various projections of the
development of the income elasticity over time. It should however be
emphasized that both the rate of growth of income and the development of
the income elasticities are very uncertain.
We are convinced that it is necessary for China to accelerate the
development of renewable energy in rural China in order to meet the rapid
growth in the demand for sustainable energy in rural China in the future.
Many problems, however, need to be solved in order to enhance the
development of rural renewable energy.

NOTES

1 This study was financed by EU-China Higher Education Cooperation Programme and
completed at Wageningen University, The Netherlands, in the period December 1999-May
2000.
2 Million tonnes of coal equivalent.

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