Analysis of the optimal spatial distribution of natural gas under ‘transition from coal to gas’ in China

Jing Lin and Dunguo Mou

Resource and Energy Economics, 2021, vol. 66, issue C

Abstract: China has been attempting to realise green sustainable economic development. Thus, China has proposed and begun to implement the ‘switching from coal to gas’ policy to realise the energy structure transition but neglected to consider seasonal natural gas demand fluctuations, gas supply shortages, the backward gas transportation and storage infrastructure. This paper constructs a model of China’s natural gas distribution system by incorporating these four factors: ① supply factors including domestic natural gas fields, liquid natural gas receiving stations, internationally piped gas sources, ② demand factors including domestic regional demands, ③ real natural gas transportation pipeline systems in the country, and ④ the pricing mechanism of natural gas. Optimal spatial natural gas distribution with maximum social welfare under the three conditions are simulated, respectively: the ① fixed price system, ② market pricing mechanism, and ③ seasonal fluctuations. The simulation results indicate substantial changes would occur in China’s natural gas system during the switch from coal to gas, and the natural gas infrastructure requires further improvement. This paper also provides references for the natural gas storage facility location selection in China.

Keywords: Natural gas market; Pipeline system; Optimal spatial distribution; Market pricing mechanism; Seasonal fluctuation (search for similar items in EconPapers)
Date: 2021
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0928765521000440
Full text for ScienceDirect subscribers only

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:eee:resene:v:66:y:2021:i:c:s0928765521000440

DOI: 10.1016/j.reseneeco.2021.101259

Access Statistics for this article

Resource and Energy Economics is currently edited by J. F. Shogren and S. Smulders

More articles in Resource and Energy Economics from Elsevier
Bibliographic data for series maintained by Catherine Liu ().