0.0. Policy implications
Some policy implications could be drawn from what has been found
in this study. First, China should decidedly strengthen indigenous
investments in RD activities as the most important implement to provide consistent impetus for the sustainable development of the
economy among the four technological factors. Second, the technology
spillovers through openness are significant to China's energy intensity
reduction except for the export. It follows that, to reduce energy
intensity, China's policies that encourage the export of energy-intensive
products should be discarded in addition to strengthening the environmental
regulations to guard against the transfer of energy-intensive
subsectors from developed countries and the energy-inefficient production
of domestic firms.