This study consists of two major parts. The first part deals with the changes in the pattern of sectoral energy consumption from 1984 to 1997, when the sectoral share of industry plummeted from 33.2% to 14.6%, whereas the share of the commercial sector advanced from 20.0% to 29.9%, trailed by smaller rises in the transportation and household sectors. Three factors contributed to these developments : First, changes in the economic structure, i.e. the decline in the role of manufacturing caused by the northward movement of industries into the Mainland, and the accompanying rise in the role of the tertiary activities; secondly, government policy and planning issues relating to the spatial development of Hong Kong; thirdly, the phenomenal hiking in living standard. The second part analyses household energy consumption in light of the energy transition model. Electricity played an increasingly important role in satisfying household energy demand, while LPG and kerosene were displaced by towngas as heating fuels. Lastly, ramifications of the study are presented.