Evolution of China’s energy security : the impact of domestic reforms and policies

Despite unprecedented energy consumption rates and environmental sustainability threats, China has seen fast economic growth in the past 30 years of reform. Within this context, this study applies both quantitative and qualitative analyses to the energy security situation in China between 1980 and 2010. Two primary objectives are achieved in this study. The first objective is to examine how the energy security situation in China has evolved in the past 30 years. This study establishes a quantitative 4-As framework and identifies 20 indicators incorporated in the framework based on a comprehensive concept of energy security which covers availability of resources, applicability of technologies, acceptability by society and affordability of prices (the 4-As). The framework analysis shows that China’s energy security situation has not improved during the economic reform. Its enlarging appetite for energy resources has made the quantitative value of the availability dimension decline. The acceptability dimension deteriorated along with the energy utilization, only improving a little recently. The affordability dimension improved after it hit the bottom in 1995. Although the country’s technology continued to progress, the improvement of the applicability dimension cannot restore the overall energy security status to the early reform period level. The emphasis on energy policies during the 30 years of reform appears to have affected the energy security status directly. The second objective of the study is to explore qualitatively why the energy security situation has not improved. To answer the “why” question, the study opens up a new perspective by analysing the relationship between energy security and energy policies from the macroeconomic reform perspective. This study discusses major reforms that took place over 30 years. It is found that China’s macroeconomic reform has restricted the formation of China’s energy policies and determined its energy security situation. In essence, China’s energy policies are only a reaction to the macroeconomic measures. In other words, China’s energy policies are not originally intended to improve energy security, but passive reactions to China’s macroeconomic reform. This explains why China did not improve its energy security situation despite 30 years of reform.Doctor of Philosoph