Country level energy use comparison and

assessment of energy service supply chains

Department of Engineering-Division A
Mphil Energy Technologies
ETB4-Energy systems and efficiency
Name: Imerson Joao
1-Country comparisons of energy use

1.1-Introduction
Fast economic growth in developing nations is pushing global energy demand [1]. Understanding
energy consumption and economic growth trends in developed and developing countries is crucial
to reducing emissions. Separating economic growth from energy use requires understanding
energy trends in industrialised and emerging nations [1]. Developing nations must learn from
developed countries and apply reasonable energy consumption measures to avoid repeating past
mistakes. Comparing two of the world's wealthiest nations may show how developed and
developing countries use energy differently. China had a GDP of $17.7 trillion in 2021 [2], making
it one of the wealthiest nations, although many economic and social metrics lag behind
industrialised nations [3]. This assessment considers China a developing nation. The report also
compares the wealthiest developed country, the United States of America (USA). This study looks
at how much energy China and the USA use and compares the factors that affect their energy use.

1.2-Background
Due to the link between economic development and energy usage, China's energy patterns have
been scrutinised [3]. China consumes the most energy and emits the most greenhouse emissions
globally. China consumed 3,500 million tonnes of oil equivalent (Mtoe) and emitted 10,081 million
tonnes of CO2 in 2020. Figure 1 depicts energy usage patterns since the 1990s [5]. Coal has
historically been the primary energy source in China, rising from 22.2 million TJ in 1990 to over 89
million TJ in 2020. This trend explains the significant investment in the coal sector and the
development of a sizeable domestic coal industry. Moreover, China's fast-paced economic growth
has led to a substantial increase in energy demand [5]. Therefore, natural gas, hydro, wind, solar,
biofuels, waste, and nuclear energy consumption rose during the same period. Figure 1 shows that
China has been working to diversify its energy mix, but coal continues to play a dominant role in
meeting energy demand.

The USA consumes the most energy worldwide. The country used 2,038 Mtoe of energy in 2020,
mostly from natural gas (35%), oil (34%), and coal (11%). Natural gas and oil have been the main
sources of energy in the USA due to their abundance, the well-developed energy infrastructure, the
economic benefits, and the focus on energy independence. Furthermore, the USA's other types of
energy usage have also evolved over time. The use of wind, solar, and other renewable sources
rose, as shown in Figure 2. However, coal utilisation dropped to 9.3 million TJ in 2020 from 19.2
million in 1990.

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 Figure 1: Total energy supply by source in China (reproduced from [5])

1.3- China and USA energy use comparison

As two of the largest economies in the world, China and the USA have vastly different approaches
to energy use, with varying sources of supply, levels of consumption, and energy policies. However,
the energy intensity factors of the economy (total energy supplied by GDP) indicate that the gap
between the two countries has been closing over time, as shown in Figure 3. The trend in both
countries shows a decline in energy intensity over time, indicating that they use less energy per unit
of economic output. This trend is likely due to many factors, including improved energy efficiency,
shifts towards less energy-intensive industries, and increased investment in renewable energy.

The data from the International Energy Agency in 2019 provides the basis for representing the
Sankey diagram shown in Figures 4 and 5. Furthermore, Table 1 shows some fundamental
differences between China and the USA in different energy service categories. Based on the data
[5, 6], the primary energy source for transportation in the USA is oil products, which account for
over 80% of the final energy consumption in the transport sector. In comparison, the main energy
source for transportation in China comes from oil products, accounting for over 50% of the final
energy consumption in the transport sector. Oil products such as gasoline and diesel have a high
energy density per unit volume and are easy to use; thus, both countries rely heavily on this fuel for
transportation. Additionally, renewables and waste are the least significant energy sources for the
transport sector in China. However, renewables and waste have gained momentum in the USA
because it has a well-developed energy infrastructure and a supportive policy environment that
encourages the growth of renewable energy in the transportation sector [7].

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 Figure 2: Total energy supply by source in the USA (reproduced from [6])

The primary energy source for the residential sector in the USA is electricity from the grid, which is
heavily dependent on natural gas. Coal, peat, and oil shale are not used for residential purposes in
the USA. In contrast, the main source of energy for the residential sector in China is coal, peat, and
oil shale. However, the government of China has been actively working to reduce its reliance on
these traditional energy sources and increase the use of renewable energy sources. Approximately
4,813 PJ of energy consumed in China's residential sector was attributed to renewable sources and
waste, compared to just 597 PJ in the USA.

Additionally, the energy sources for the industrial sector in the USA and China vary. In the USA,
natural gas is the primary energy source for the industrial sector, accounting for a significant 50%
share of the sector's energy consumption. Coal, peat, and oil shale are the least used energy source
for the industry sector in the USA. In China, the primary energy sources for the industrial sector are
coal, peat, and oil shale, accounting for 44% of the sector's total energy consumption. The
Commercial and governmental services in China and the USA use energy similarly to industry. The

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American electric system uses natural gas to meet most business and public sector energy needs.
In China, a coal-heavy electric grid meets commercial and public service demand.

Figure 3: Total energy supply by GDP for the United States and China [5, 6]

Table 1: Energy service key features for China and the United States.

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Figure 4: China’s energy consumption flow from source to final sector

Figure 5: USA’s energy consumption flow from source to final sector

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1.4- Summary
In conclusion, the energy consumption patterns of China and the USA are vastly different, with
varying sources of supply, levels of consumption, and energy policies. The gap between the two
countries in energy intensity has been closing over time, with both nations using less energy per
unit of economic output. This trend is likely due to improved energy efficiency, shifts towards less
energy-intensive industries, and increased investment in renewable energy. The primary energy
sources for transportation, residential, and industrial sectors differ between the two countries, with
the USA relying heavily on natural gas and China relying heavily on coal. Although both countries
attempt to implement various policies and measures to encourage energy-efficient and
environmental practices, fossil fuel is still the primary energy source for both countries. However,
both countries' governments are actively working to reduce their reliance on traditional energy
sources and increase the use of renewable energy sources. Understanding energy consumption
trends in developed and developing countries is crucial for reducing emissions and promoting
sustainable energy practices. The development of China highlights the cost the world pays for
blindly prioritizing economic growth, just as developed countries, such as the USA, did in the past.
Figure 6 shows how carbon intensity in China has more than tripled in the past two decades. The
comparison of this study highlights the importance of implementing environmentally responsible
practices for developing countries striving for economic growth and for developed countries to
reduce their carbon emissions to preserve the planet significantly.

Figure 6: Carbon intensity index of China and the USA [5, 6]

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2- Energy service delivery

2.1- Introduction
Lighting accounts for a significant portion of electricity consumption in both China and the USA, with
estimates indicating that it constitutes 12% of China's electricity consumption [8] and 11% of the
electricity consumption in the USA [9]. Despite the seemingly small percentage, the shift to more
energy-efficient lighting options has the potential to reduce CO2 emissions significantly, given the
reliance of these countries' electric grids on fossil fuels [5, 6]. In response to this, China has taken
proactive measures by launching the Roadmap for Phasing Out Incandescent Light Bulbs (RPILBs)
to improve energy efficiency and protect the environment by promoting fluorescent lamps [10].
Similarly, the Biden Administration has set its sights on energy efficiency with the 100% Energy
Efficiency Action Plan, which seeks to save families an average of $100 on their energy bills
annually by implementing a minimum standard for lamps. Only lamps with a minimum standard of
45 lumens per watt will be permitted [11]. In light of these efforts, this study argues that adopting
Light Emitting Diodes (LEDs) could play a crucial role in promoting energy efficiency and reducing
carbon emissions in China and the USA [12]. LEDs boast numerous advantages, including energy
efficiency, environmental compatibility, and a longer lifespan compared to traditional lighting
options, making them an attractive solution for achieving energy efficiency improvements and
carbon reductions [12]. However, implementing these changes presents technical, behavioural, and
economic challenges that must be addressed to ensure their successful adoption. This study will
explore these challenges and suggest new policies to encourage the widespread adoption of LED
lighting.

2.2- Lighting service, possible changes, new policies, and

challenges
In both China and the United States, lighting electricity is heavily reliant on fossil fuels. China's
carbon intensity in electricity production is approximately 0.14 kilogrammes of CO2 per megajoule
(kg CO2/MJ) [14], while the United States' carbon intensity is estimated to be around 0.12 kg CO2/MJ
[13]. Therefore, according to the data from EIA [5, 6] and the CO2 conversion factors [13, 14], it is
estimated that lighting electricity contributes approximately 266.6 MtCO2 emissions in China and
115.92 MtCO2 emissions in the USA, based solely on the fossil fuel supply chain. Thus, the efforts
made by both countries to increase energy efficiency in the lighting sector will contribute to reducing
carbon emissions. As depicted in Figure 7, a Life Cycle Assessment (LCA) that analysed 15 impact
categories revealed that LED technology had a significantly lower environmental impact than other
light bulb types [12]. The results of the LCA showed that the plots for LED lamps were within the
acceptable range for all categories [12]. This study suggests that China and the USA should set
more ambitious targets than their current plans and consider banning non-LED light lamps in the
market.

In order to promote LED use, both China and the USA should raise awareness about the benefits
of LED use by utilising the Energy Policy and Conservation Act of 1975 (EPCA) requirements on
energy labelling in the USA [15] and China's Energy Label Law by the China National Institute of
Standardization (CNIS) [16]. The government can raise awareness further through media

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campaigns, educational programs, and community outreach. These regulations will provide
consumers with valuable information, help drive the adoption of LED lighting, educate the public on
the benefits of LED lighting, and encourage the adoption of energy-efficient lighting options.
Furthermore, the government can regulate the supply and demand market by offering rebates,
subsidies, or tax credits [17] and incentivizing manufacturers to produce LED lights through tax
breaks. By taking these steps, both countries can make significant strides towards achieving energy
efficiency improvements and reducing carbon emissions in the lighting sector.

Figure 7: Life-Cycle Assessment Impacts of the Lamps Analysed relative to CFL (reproduced
from [12])

Nevertheless, implementing a ban on non-LED light lamps may face challenges due to the
substantial revenue generated by the lamps and lighting industries in China and the USA. According
to Statista, the lamps and lighting segment is estimated to generate $7.62 billion in China and $30.6
billion in the USA [18-20]. The significant lighting market value could result in resistance from the
industry, which may seek to protect its financial interests from non-LED shares [18-20]. Additionally,
the high up-front costs of LEDs may also be a barrier to adoption for consumers who already
struggle to pay monthly bills [21]. The government and manufacturers may need to work together
to address these challenges and find ways to make LED lights more accessible and affordable for
consumers. Moreover, consumers may face challenges in retrofitting their homes and buildings, as
existing lighting fixtures will need to be replaced [22]. Therefore, it may be necessary for the
government and energy suppliers to incentivize consumers to adopt LED lighting. Energy providers
can also help promote LED lighting by starting energy-saving programmes and offering incentives
for using less energy. This can help consumers learn about the benefits of LED lighting and make
the switch to more energy-efficient lighting options easier. Therefore, it is imperative for all
stakeholders, including consumers, governments, and energy providers, to work together in a
coordinated effort to overcome the challenges and successfully implement LED lighting.

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2.3- Summary
In conclusion, the lighting sector plays a substantial role in China's and the USA's electricity
consumption, and the shift to more energy-efficient lighting options, such as LED lighting, holds
great potential for reducing CO2 emissions. However, the adoption of LED lighting faces technical,
behavioural, and economic challenges that must be addressed to ensure its successful
implementation. To encourage the widespread adoption of LED lighting, China and the USA should
raise awareness about its benefits and consider banning non-LED light lamps in the market. The
government can play a crucial role in promoting LED lighting by utilising energy labelling regulations,
media campaigns, educational programs, and community outreach initiatives. Incentives, such as
rebates, subsidies, or tax credits, can also be offered to regulate the market of supply and demand
and incentivize manufacturers to produce LED lights. Finally, the challenges of implementing this
scheme can be addressed through a combination of awareness campaigns, government
regulations, and incentives from the energy supplier to support the transition to a 100% LED market.

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5-Reference
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