Regional inequality in China's electricity trade

Yue Pan, Jian Chai, Lingyue Tian, Xiaokong Zhang and Jiaoyan Wang

Energy, 2024, vol. 313, issue C

Abstract: The electricity industry has emerged as a key driver in the global carbon reduction initiative within the energy sector. Meanwhile, the national power grid is an essential foundation for societal well-being. However, ongoing regional inequalities in electricity trading highlight the urgent need for a thorough investigation to ensure efficiency and fairness in electrification. We strategically address the spatiotemporal evolution characteristics of inter-regional electricity trade and its added value. The mismatch between carbon emissions and benefits during electricity exchanges is quantified across 30 distinct regions in China from 2005 to 2019. The conclusion indicates that, since 2005, eastern coastal areas have generally benefited, whereas inland areas have faced disadvantages in electricity trade. By 2019, an analysis of electricity trade among regions and grids revealed that areas with low net outflows of clean electricity are more prone to trade inequality. Lastly, regions with high electricity demand or economic development exhibit lower carbon emissions per unit and higher added value per unit of exported products compared to low electricity demand or economically backward regions, with the disparity between them widening. This research offers important insights into developing fair climate policies.

Keywords: Electricity trade; Regional inequality; Multi-regional input–output model; Carbon emission; Value-added (search for similar items in EconPapers)
Date: 2024
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Persistent link: https://EconPapers.repec.org/RePEc:eee:energy:v:313:y:2024:i:c:s0360544224037113

DOI: 10.1016/j.energy.2024.133933

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