This research analyses China’s energy transition in
terms of its performance, possible energy mix and
transition pathways. The research investigates the
relationship between energy transition and economic
growth; examines the extent to which modern energy
can substitute for traditional energy, and identifies the
drivers of energy transition. The findings suggest that
China’s transition to cleaner energy is accelerating. This
is due to growth raising the capital intensity of the
Chinese economy which increases substitutability
between fuels and reduces the prices of modern fuels.