Abstract
Purpose of review
The purpose of this study was to reduce and further prevent environmental pollution and climate warming caused by traditional fossil fuel consumption, as well as to ensure the sustainable development of the national economy. Exploiting and utilizing renewable energy is necessary for the Chinese government. In theory, North West China is not only a crucial area for supplying traditional fossil fuels but also contains rich reserves of renewable energy; meanwhile, this area is the most environmentally fragile place. Therefore, it is worthwhile to look at the energy consumption structure for North West China, and whether the abundant renewable energy has promoted the wealth growth for this area.
Recent Findings
In energy consumption structure, overall in reality, traditional fossil fuels are domain dominant for in North West China. As for the respective five provinces in such area, conclusions differ. Provinces such as Qinghai and Gansu utilize higher proportions of renewable energy. Even so, it is still worthwhile to find the reason why renewable energy in such area fails to account for a large share. Recent reports released by the China National Energy Administration give two explanations from observation: (1) abandoned wind rate and (2) abandoned light rate. Also , other literature states thatsuggests proper infrastructure and, financial support to make ensure the further development and increased utilization rate. In terms of the relationship between renewable energy used and economic growth, four out of five provinces in this area show a binary relationship with only Ningxia as an exception, an empirical result showing that utilization of renewable energy does improve the economic development.
Summary
Renewable energy utilization remains a big issue to be addressed by the Chinese government. Only by solving this question, not only would North West China not only be unaffected by the potential exhausting dilemma of traditional fossil fuels and the corresponding environment pollution, but also could enjoy the economy economic advancement.