Energy efficiency and conservation in China's manufacturing industry

China's energy conservation has received extensive attention. As the most important sector of the economy, the manufacturing industry plays a vital role in China's energy issues. Conserving energy in China's manufacturing industry (CMI) is of great significance for both China and the world. In this paper, the co-integration method is applied to test the long-term equilibrium relationship among energy consumption and three explanatory variables during the period 1980-2013. Furthermore, we use scenarios analysis method to forecast the energy demand of CMI. The results show that if the government does not properly manage the economy, the energy demand of CMI will reach 2558.97 Mtce in 2020 and 2594.18 Mtce in 2030. On the contrary, if the government attaches importance to energy conservation and takes necessary actions, energy demand in the industry will reduce to 1113.79 Mtce by 2030, which implies a large energy conservation potential for CMI.