Featured Report: The Changing Political Economy of Energy in China
The Changing Political Economy in China by Kang Wu (FGE) and Jane Nakano (Energy & National Security Program, CSIS) provides an overview of China’s energy balance and the various energy-related priorities at play. Over the last decade, China’s energy sector was shaped by its need to fuel the unrelenting pace of economic growth; it is now being shaped by China’s need to transition its economy to the next stage of economic and social development. As China enters a new phase in its economic development, it does so from its position as the largest energy producing and consuming country in the world. Whether and how China can successfully navigate this next stage will have important implications for investors, neighboring countries, and energy markets.
Global and regional energy markets for nearly all energy resources have been affected by the pace and scale of Chinese consumption—especially oil and coal, but also wind, solar, and nuclear.
Using the latest energy sector data, forecasting, and policy analyses, this report will explore these issues and questions:
- How far are Chinese leaders willing and able to liberalize the energy markets?
- How successful can China be in raising the share of nonfossil energy to meet its goal of capping total carbon emissions by 2030?
- Will natural gas replace coal quickly and sufficiently enough for China to reach a peak emission level?
- How will China view and achieve energy security during the transition to a new economic stage?
- What are the implications of China’s overseas energy investment and the promotion of the One-Belt, One Road (OBOR) initiative?
In addition, in a short commentary, Ed Chow, highlights how Chinese energy companies are shifting their focus internationally: China: Energy Leviathan of the Present or Future?
The global energy landscape is undergoing major series of shifts. The confluence of economic, geopolitical, and environmental drivers may lead to changes in many countries around the world. In an effort to understand the how the energy landscape is shifting and its implications for major consumers and producers, the CSIS Energy and National Security Program launched a series of special reports to investigate the changing political economy of energy in certain key countries around the world.
The first paper, Shifting Political Economy of Russian Oil and Gas, written by Tatiana Mitrova from the Energy Research Institute at the Russian Academies of Sciences, examines the difficult position facing the Russian oil and gas sector.