Chinaʹs energy demand and its characteristics in the industrialization and urbanization process: A reply

Zhang and Qin (2013) argued that in Jiang and Lin (2012), the equation form and variable selection should be altered, and it was problematic to use regression equation to project the future. In this reply, we disagree with and will refute some of the points raised in their comments. The model that we established was based on the mature economic theory; with the variable selections all having economic implications. Considering the economic development stage, Chinaʹs urbanization will speed up and this will have significant effect on energy consumption. Therefore, urbanization is an indispensable variable for analyzing energy demand in China. The scenario design only in terms of the GDP is sufficient for illustrating energy demand trend in China to be understood in a way by most of the people. Although energy forecast is not that precise, it has an important implication for energy policy design, especially for China which is in transition. And Chinaʹs energy demand will keep high growth in the mid-term.