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12
2018
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12
Reindustrialization and industrialization promote the electrification of energy consumption.
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Following the financial crisis, countries have placed even greater emphasis on the development of the real economy. In addition to competition centered on the virtual economy—particularly finance—competition among nations in the real economy has also entered a new stage.
After the financial crisis, countries have placed even greater emphasis on the development of the real economy. In addition to competition centered on the virtual economy—whose core is finance—competition among nations in the real economy has also entered a new stage.
In the 1970s, Western scholars proposed a “return” strategy—based on the declining status of industry within various sectors, the relative loss of competitiveness of industrial products in the international market, and the large-scale shift of industrial investments overseas coupled with insufficient domestic investment—to reorient toward the real economy, concentrate industrial investment domestically, and prevent the hollowing out of industrial structures. Today, this strategy is once again gaining traction in developed countries. At present, most developing countries are still far behind developed nations in terms of industrialization levels and will therefore continue to advance industrialization as before. However, the global economy is now undergoing profound changes, and both “reindustrialization” and “industrialization” are exhibiting new meanings and characteristics.
The reindustrialization efforts in developed countries are underpinned by a robust industrial foundation. Their reindustrialization is by no means a simple return to earlier practices; rather, it focuses on the development of emerging industries centered around high technology. By fostering high-value-added manufacturing sectors—such as advanced manufacturing technologies, new energy, environmental protection, and information technology—their goal is to rebuild a new industrial system endowed with strong competitiveness. Meanwhile, developing countries are simultaneously advancing industrialization steadily while also striving for a moderate leapfrogging in their industrial development.
The emphasis that various countries are placing on industrialization centered on manufacturing will have a significant impact on the development and transformation of the energy sector. Reindustrialization and continued industrialization will boost the electrification of energy consumption, primarily in the following areas.
First, total energy demand is on the rise. As industry is a major consumer of energy, and given the ongoing trend toward increasingly lighter industrial structures in various countries—as well as advancements in technology and improvements in energy efficiency—global energy intensity has been declining. While developing countries continue to exhibit a strong correlation between economic growth and energy demand, developed nations such as the United States and Japan have already experienced varying degrees of decoupling between energy consumption and economic growth. The trend toward reindustrialization will, to some extent, boost energy demand; in particular, the return of manufacturing to domestic shores in developed countries could alter the decoupling trajectory that has already emerged. Although developing countries still lag behind their developed counterparts in terms of technological and energy-efficiency levels, the continued deepening of industrialization will drive up energy demand. Overall, the reindustrialization efforts in developed countries and the ongoing industrialization in developing countries will help sustain the growth of global energy demand. However, taking into account the continuous improvement in energy efficiency, the rate of energy growth will gradually slow down.
Second, industrialization has transformed the structure of end-use energy consumption, leading to a rising share of electricity in total end-use energy consumption. Global economic development data show that industrialization has had a significant impact on increasing the proportion of electricity in end-use energy consumption. Currently, developed countries have a substantially higher share of electricity in their end-use energy consumption than the global average—mainly because these countries have already completed their industrialization processes and boast relatively mature industrial structures, whereas developing countries are still in the midst of industrialization and remain highly dependent on electricity consumption. In the future, the ongoing reindustrialization in developed countries and the continued advancement of industrialization in developing countries will further boost demand for electricity, thereby further increasing the share of electricity in global end-use energy consumption. Among these factors, the electric revolution is a key driving force.
Once again, the degree of clean energy utilization is steadily increasing. The reindustrialization in developed countries and the industrialization in developing countries are both accompanied by an optimized adjustment of energy structures. This shift in energy structure is not only a key component of industrialization but also a crucial driving force behind its upgrading. Whether in developed or developing countries, industrialization plans and energy development plans remain closely aligned. In former U.S. President Obama’s reindustrialization initiative, the development of new energy sources was a central component. In current President Trump’s plan to revitalize fossil fuels, natural gas plays a pivotal role. China, too, is accelerating its efforts to develop natural gas while promoting the clean use of coal and vigorously expanding renewable energy sources. A number of developing countries, including India, have also formulated medium- and long-term plans for green and low-carbon energy development. Thus, whether it’s the reindustrialization in developed countries or the industrialization in developing countries, both are inextricably linked to the clean and electrified development of energy.
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