Promoting Decarbonization in China: Revealing the Impact of Various Energy Policies on the Power Sector Based on a Coupled Model

Minwei Liu, Lang Tang (), Jincan Zeng, Guori Huang, Xi Liu, Shangheng Yao, Gengsheng He, Nan Shang, Hai Tao, Songyan Ren and Peng Wang ()
Additional contact information
Minwei Liu: Planning & Research Center for Power Grid, Yunnan Power Grid Corp., Kunming 650011, China
Lang Tang: Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, Guangzhou 510640, China
Jincan Zeng: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510663, China
Guori Huang: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510663, China
Xi Liu: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510663, China
Shangheng Yao: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510663, China
Gengsheng He: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510663, China
Nan Shang: Energy Development Research Institute, China Southern Power Grid, Guangzhou 510663, China
Hai Tao: Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, Guangzhou 510640, China
Songyan Ren: Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, Guangzhou 510640, China
Peng Wang: Guangzhou Institute of Energy Conversion, Chinese Academy of Sciences, Guangzhou 510640, China

Energies, 2024, vol. 17, issue 13, 1-19

Abstract: The carbon emissions of the power industry account for over 50% of China’s total carbon emissions, so achieving carbon peak and carbon neutrality in the power sector is crucial. This study aims to simulate the impacts of three energy policies—carbon constraints, the development of a high proportion of renewable energy, and carbon trading—on China’s energy transition, economic development, and the power sector’s energy mix. Through the construction of a dynamic computable general equilibrium (CGE) model for China and its integration with the SWITCH-China electricity model, the impact of diverse energy policies on China’s energy transition, economic progress, and the power mix within the electricity industry has been simulated. The integration of the SWITCH-China model can address the limitations of the CGE model in providing a detailed understanding of the specific intricacies of the electricity sector. The results indicate that increasing the stringency of carbon restrictions compels a reduction in fossil energy use, controlling the output of coal-fired power units, and thereby reducing carbon emissions. The development of a high proportion of renewable energy enhances the cleanliness of the power sector’s generation structure, further promoting the national energy transition. Implementing a carbon trading policy, where the entire industry shares the burden of carbon reduction costs, can effectively mitigate the economic losses of the power sector. Finally, the policies to further enhance the implementation of carbon trading policies, strengthen effective governmental regulation, and escalate the deployment of renewable energy sources are recommended.

Keywords: power sector; carbon peaking; renewable energy; carbon trading; CGE; SWITCH-China (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: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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