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Are China and Europe Converging?

This analysis aims at giving a flavour of what is happening between the European and Chinese markets with reference to selected energy indicators and economic variables. More precisely the analysis is concerned with the convergence between European countries (EU15 Norway) and China in terms of both per capita GDP and “sustainability indicators”. The variables we refer to as “sustainability indicators” are two: energy intensity (EI) and carbon intensity (CI). The paths of such variables will be investigated both looking at the economy as a whole and by analysing what is happening in three sectors of economic activity, namely industry, agriculture and services. It finds strong evidence of convergence in energy intensity and carbon intensity between the EU and China, with rates fast enough to achieve 90% convergence in a matter of two decades.