It is a cold winter morning in Beijing. As I prepare to write this blog about energy efficiency in China, I wonder how efficient my own day will be. I enjoyed a quick shower with warm water from the solar tank on our roof, and prepared our breakfast with appliances that carry energy performance labels. All our lighting fixtures are energy efficient, and none of the electronic equipment is on standby.

Our apartment is heated by a coal-fired plant in the neighborhood, which belches thick smoke into the sky. Our heating bill doesn't reflect the energy we use but the size of our apartment, so we have no financial incentive to save energy. As on most mornings, the concentration of particulates in Beijing's air [...]