China's rapacious coal plant building is neither moral nor sustainable, as discussed in Part I. Yet many supply-side alternatives, like nuclear and hydro, are problematic for the country.
What should China do to satisfy its insatiable thirst for energy? Go back to their amazing energy efficiency policies of the 1980s and early 1990s.
China's energy history can be divided into several phases, as we learn from Dr. Mark Levine, cofounder of the Beijing Energy Efficiency Center (see terrific video here).
The first phase (1949-1980) was a "Soviet Style" energy policy during which there were subsidized energy prices, no concern for the environment, and energy usage that rose faster than economic growth (GDP).
The second phase (1981-1999) was "California on steroids," when the country embraced an aggressive push on energy management and energy efficiency, surpassing the efficiency efforts California achieved since the mid-1970s. This came about as a result of Deng Xiaoping heeding the advice of a group of leading academic experts who suggested a new approach to energy. Chinese strategies included: