The issues related to rural energy development and the corresponding escalating economic activities have given rise to a complex, interrelationship among societal, economics, energy, environment and rural policies. With 7% of the world's farm land to produce food for 23% of the world's population, combined with the increasing energy demands for modernized farming has resulted in a dynamic rural energy policy for China. This paper discusses the characteristics of a rural society, outlines the relationship of rural energy supply and demand management, and discusses the interrelationship between energy and the environment utilization. An illustration of the diffusion of biomass as a success story highlights some of the policies related to self-building, self-managing and self-using. Also discussed in this paper are the results of the integrated rural energy-policy, that is, the social benefits to farmers and the decrease of energy consumption per unit of output. Emerging nations must undertake a comprehensive analysis and synthesis of their respective rural energy developments and the corresponding interrelationships between technology, economics and the environment.