China´s Manufacturing: Economic Analysis of Energy Efficiency Improvement

The recent economic reform of China´s manufacturing has resulted in its rapid expansion to grow faster. However, the resultant increase in the use of energy has resulted in energy efficiency improvement. In this paper, rebound effect in the macro-economic scale is used to explore the positive effects on the energy efficiency improvement. GDP is taken into account. Next, an economic analysis is carried out through MDM-E3 model to find how GDP works on the improvements of energy efficiency. After the academic analysis, an appropriate case of China´s economy is researched to confirm the results put forward in the sections above. Then, some conclusions are gained after the academic and case studies. Chinese manufacturing can get several useful information to improve its own energy efficiencies in a new and characteristic method. Two suggestions are given with respect to two sides: one is to the consumers and producers to improve their energy behaviors; and the other is to the government which advises it to consider the problem in a wider view in the situation of whole economy.