Carbon emissions intensity reduction target for China¡¯s power industry: An efficiency and productivity perspective

Yujiao Xian, Ke Wang, Xunpeng Shi, Chi Zhang, Yi-Ming Wei and Zhimin Huang

No 117, CEEP-BIT Working Papers from Center for Energy and Environmental Policy Research (CEEP), Beijing Institute of Technology

Abstract: This paper proposes a scenario analysis to address whether the national and provincial CO2 emissions intensity reduction target during 2016-2020 would be achievable for China¡¯s power industry with the identification of change on carbon productivity. This productivity indicator is further decomposed to investigate contributions of different sources to productivity growth when there exists technological heterogeneity. Evaluation results show that even if all electricity-generating units in each region were able to adopt the best practice, the nationwide 18% intensity reduction target is not feasible through improving technical efficiency or upgrading technology on electricity generation and carbon abatement in a short or medium term. The existence of regional technological heterogeneity in power generation and associated CO2 emissions reduction processes implies the necessity of more differentiated regulations and policies for emission reduction across China¡¯s regions and inter-regional technology transfer. The emerging national emission trading scheme could easy some challenges in formulating emission policy for heterogeneous regions.

Keywords: Data Envelopment Analysis (DEA); Endogenous directional distance function (DDF); Meta-technology frontier; Heterogeneity; Technological gap (search for similar items in EconPapers)
JEL-codes: Q40 Q54 (search for similar items in EconPapers)
Pages: 43 pages
Date: 2018-07-01
New Economics Papers: this item is included in nep-cna, nep-eff, nep-ene, nep-env, nep-reg and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (26)

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