Green economy or coal ‘counter-revolution’? Challenges to China’s economic reform process.

Abstract:

The so-called ‘energy revolution’ has been one of the priority reforms in the agenda of President Xi Jinping. It is one part of the deep restructuring of the Chinese economy, and represents a move away from the investment-based model. The slowdown of economic growth and the rising importance of the problem of environmental pollution have led to a redefinition of the role of coal in Chinese economic policy. The share of coal in energy consumption is expected to decrease gradually, and coal-fired power plants are expected to lose importance and give ground to renewable and nuclear energy.

This trend is expected to be boosted by the restructuring and reduction of heavy industry which the government intends to carry out. The situation of the Chinese coal sector will also change as a result of the ongoing price reform, which aims to reduce the level of energy intensity and increase the efficiency of the sector’s operations by introducing deregulation in the field of electricity distribution and transmission.