China: Coal-Fired Consumption
Although China is adding solar and wind energy rapidly, renewables cannot keep pace with coal, which generates 80 percent of the nation's electricity. China, one of the few countries that subsidizes the black rock, consumes more coal than the United States, the European Union, and Japan combined.
Although the size of China's subsidies, $21.3 billion in 2010, ranks among the largest in the world, they are low compared to the size of the nation's economy and population, totaling about 0.4 percent of GDP and $16 per person.
Still, China is driving world demand for fossil fuel, especially oil, due to skyrocketing automobile ownership that will surpass the United States by 2030, when it is estimated China will have more than 390 million cars.
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The IEA calculates that a phase-out of fossil-fuel subsidies would trim global oil demand by 3.7 million barrels per day by 2020, and by 4.4 million barrels per day, or 4 percent, by 2035. "Higher prices (and expectations of such) contribute to greater conservation and the uptake of more efficient vehicles long after the phase-out of subsidies has been completed," IEA said.
Also, natural gas demand could be cut by nearly 10 percent, and coal demand by more than 5 percent by 2035, just by removing subsidies, IEA says. Energy-related carbon dioxide (CO2) emissions would fall 1.7 gigatons, about 5 percent, below the 36.1 gigatons now projected for 2020. That would be the equivalent of eliminating all of the CO2 emissions of Russia, and similar to the anticipated savings from all climate change policy plans now being weig
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