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Energy efficiency policies can help to reduce energy use and mitigate the effects of climate change. This paper examines the U.S. and Chinese economies by applying HEM to both. Key sectors absorbing more energy from other sectors by purchasing intermediate products from them and, simultaneously, transferring more energy by selling products to the rest of the sectors are identified. This provides insights for decision-making on appropriate energy efficiency policies. It appears that the U.S. economy should focus on the service sector, and the Chinese should focus on the industrial sector. [ABSTRACT FROM AUTHOR]

This paper argues that the most obvious measure to combat greenhouse gas emissions is to remove the vast subsidies that promote higher energy consumption in more than half of the countries in the world, and that this measure should take precedence over many others. The article discusses also why removing energy subsidies is so difficult, and which type of state may succeed. This question is examined with reference to China, India and Russia, all major contributors to global warming. Non-democratic governments and energy importers might be expected to be more likely to halt subsidies. In fact, energy trade imbalances do not seem to significantly affect the capacity to reduce subsidies. The risk of social unrest is a political restraint in all three countries. Perhaps surprisingly, democratic states may be better positioned to remove subsidies than non-democratic ones. [ABSTRACT FROM AUTHOR]