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Energy-Related CO 2 Emission in China’s Provincial Thermal Electricity Generation: Driving Factors and Possibilities for Abatement

Qingyou Yan (), Yaxian Wang (), Tomas Baležentis (), Yikai Sun () and Dalia Streimikiene ()
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Qingyou Yan: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Yaxian Wang: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Yikai Sun: State Grid Zhejiang Economy Research Institute, Hangzhou 310008, China
Dalia Streimikiene: Lithuanian Institute of Agrarian Economics, Kudirkos Str. 18-2, Vilnius LT-03105, Lithuania

Energies, 2018, vol. 11, issue 5, 1-25

Abstract: China’s electricity sector mainly relies on coal-fired thermal generation, thus resulting that nearly 50% of China’s total CO 2 emissions coming from the electricity sector. This study focuses on the provincial CO 2 emissions from China’s thermal electricity generation. Methodologically, Index Decomposition Analysis (IDA), facilitated by the Shapley Index, is applied to discover the driving factors behind CO 2 emission changes at the provincial level. In addition, the Slack-based Model (SBM) is used to identify which provincial power grids should be allocated with a higher (lower) CO 2 reduction burden. The IDA results indicate that economic activity pushed the CO 2 emissions up in all 30 provincial power grids, excluding Beijing and Shanghai; the carbon factor contributed to a decrease in the CO 2 emissions in all 30 provincial power grids, with the exception of Jilin, Guangdong, and Ningxia; though the effect of energy intensity varied across the 30 provinces, it played a significant role in the mitigation of CO 2 emissions in Beijing, Heilongjiang, Liaoning, Jilin, Shanghai, Anhui, and Sichuan. According to the SBM results, the lowest carbon shadow prices are observed in Yunnan, Shanghai, Inner Mongolia, Jilin, Qinghai, Guizhou, Anhui, and Ningxia. These provincial power grids, thus, should face higher mitigation targets for CO 2 emissions from thermal electricity generation.

Keywords: CO 2 emissions; index decomposition analysis; shadow prices; environmental efficiency (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2018
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