Regulatory Incentives for a Low-Carbon Electricity Sector in China

Flavio Menezes and Xuemei Zhang
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Xuemei Zhang: School of Economics, Southwestern University of Finance and Economics

No 562, Discussion Papers Series from University of Queensland, School of Economics

Abstract: This paper reviews the incentives for pursuing a low-carbon electricity sector that are embedded in China’s regulatory and policy framework. To do so, we first describe the industry structure and the regulatory framework. Second, we explicitly review the policies that were developed to promote energy efficiency and renewable energy. These policies range from the introduction of legal requirements to undertake particular actions to pricing mechanism and financial incentives. The paper reviews evidence that the various programs designed to replace less efficient with more efficient power generation units have already produced impressive results. In addition, there has been steady progress in reducing line losses. Thus, supply-side energy efficient initiatives have been, at least, moderately successful. In contrast, we show that demand-side energy efficiency initiatives seem to have gone nowhere. Finally, we tease out the challenges faced by a sector governed by a myriad of complex arrangements, different institutions and agents who face different and often conflicting incentives for pursuing environmental and energy efficiency objectives.

Keywords: Regulatory Incentives; Energy Efficiency; Renewable Energy; Electricity Sector (search for similar items in EconPapers)
Date: 2016-08-08
New Economics Papers: this item is included in nep-agr, nep-cna, nep-ene, nep-env, nep-reg, nep-res and nep-tra
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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Persistent link: https://EconPapers.repec.org/RePEc:qld:uq2004:562

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