Energy and exports in China

Exports have been a primary driver of China's economic growth over the last decade, and particularly since the country's accession to the World Trade Organization in late 2001. However, rapid growth in exports poses challenges for economic, energy, and environmental policymaking in China. Based on an analysis of national input-output and energy input tables, this paper examines linkages between China's exports and domestic energy consumption. We argue that, while exports place less demand on domestic energy resources than might be expected given export volumes, exports are the largest source of energy demand growth in China. Addressing the economic and environmental challenges created by rapid energy demand growth will require a more comprehensive, supply chain perspective on energy-export linkages.