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Abstract: The pulp and paper industry is one of the most energy-intensive industries worldwide. In 2007, it accounted for 5% of total global industrial energy consumption and 2% of direct industrial carbon dioxide (CO2) emissions. An energy audit is a primary step toward improving energy efficiency at the facility level. This paper describes a plant-wide energy audit aimed at identifying energy conservation and CO2 mitigation opportunities at a paper mill in Guangdong province, China. We describe the energy audit methods, relevant Chinese standards, methods of calculating energy and carbon indicators, baseline energy consumption and CO2 emissions of the audited paper mill, and nine energy-efficiency improvement opportunities identified by the audit. For each of the nine options, we evaluate the energy conservation and associated CO2 mitigation potential. The total technical energy conservation potential for these nine opportunities is 967.8terajoules (TJ), and the total CO2 mitigation potential is equal to 93,453tonnes CO2 annually, representing 14.4% and 14.7%, respectively, of the mill’s total energy consumption and CO2 emissions during the audit period. [Copyright &y& Elsevier]

With important implications for global climate change mitigation, the development of a cap-and-trade emission trading scheme (ETS) in China is embedded in distinctive political, economic, and institutional contexts and has been attracting increasing attention in recent years. To offer a clear perspective on current research progress, this paper systematically reviews the recent literature on China’s ETS from three main aspects: mechanism design, policy and regional linkages, as well as impact assessment. The current research consensuses are summarized based upon detailed literature analyses and commentaries, and together with observations of international experience and China’s actual condition, the paper provides policy proposals for the development of China’s national ETS during 2016–2020. Finally, several important controversies in the current literature are discussed with regard to the practical demands of China’s ETS development. Five pressing topics that need to be further studied in the coming years are highlighted, including cap setting, allowance allocation among sectors and enterprises, carbon pricing, policy package and unified carbon market construction, as well as ex-ante and ex-post impact assessments. [ABSTRACT FROM AUTHOR]

Abstract: In March 2011, China’s central government set a new challenging target of reducing its energy intensity by 16% during 2011–2015, after it had achieved a reduction of 19.1% during 2006–2010. And this new target was assigned to provincial authorities in August 2011. However, China’s provincial energy-economic developments are unbalanced and different provinces have different key sectors for energy conservation. Most previous studies focused on provincial energy efficiency at the aggregate level, or the three-industry level (or one-digit level). However, whether for policy decision or academic research, it is necessary to further subdivide the sectors. In this paper, we use three indicators (Gini Coefficient, energy consumption share and energy intensity) to compare provincial energy conservation potentials at the two-digit sector level. To our knowledge, this paper is the first one to identify the keys for energy conversation across the 31 provinces×65 sectors. And the results are shown in visualized maps and matrix tables to help identify the key province×sectors for energy conservation easier. This also helps the central and provincial governments to distinguish key sectors when they monitor the energy conservation progress. [Copyright &y& Elsevier]

Abstract: Recently, energy production in China fell behind energy consumption. This poses important challenges for the rapidly growing Chinese economy. As a consequence, the causal relationship between energy consumption and GDP is an important empirical issue. This paper examines Granger causality between energy consumption and GDP in China using province-level data. The current paper extends the Granger causality analysis employed in previous studies by taking into account panel heterogeneity. Specifically, four different causal relationships are examined: homogeneous non-causality (HNC), homogeneous causality (HC), heterogeneous non-causality (HENC), and heterogeneous causality (HEC). HC and HNC hypotheses are rejected for causality in either direction, from GDP to energy or from energy to GDP, which implies that the panel made up of Chinese provinces is not homogeneous. Then, heterogeneous causality tests (HEC ad HENC) are conducted for each province. For the causality running from GDP to energy, 19 provinces exhibit HEC and 11 provinces exhibit HENC. For the causality running from energy to GDP, 14 provinces exhibit HEC and 16 provinces exhibit HENC. The results suggest that the Chinese government should incorporate a regional perspective while formulating and implementing energy policies. [Copyright &y& Elsevier]

Highlights • The input–output model and ecological network analysis (ENA) are integrated. • The control and dependence conditions of economic sectors in China are analyzed. • The key regions and sectors for carbon mitigation of China are identified. Abstract In this paper, multi-regional input–output analysis (MRIO) and ecological network analysis (ENA) are combined to assess carbon flows within China and identify key regions and sectors in the context of spatial heterogeneity for effective carbon mitigation. An interregional carbon network model is established by articulating the directions and magnitudes of carbon flows based on MRIO. ENA is then used to unveil indirect carbon flows and mutual relationships among regions. The results show that the northwest is the largest controller for most regions in China. Most carbon emissions in the rest of China are induced by the east’s final demand and substantial consumption. In addition, at sectoral level, the control and dependence abilities vary by region in China. This study provides an integrated framework to investigate interregional carbon emission structure, identify efficient pathways for coordinated emission mitigation, and reduce global carbon inequality across regions. [ABSTRACT FROM AUTHOR]

The objective of this study is to trace and quantify the sources of rebound effect for different energy sources in China. This paper decomposes the economy-wide rebound effect into 135 production sector-level rebound effects and five final demand components. The sector-level rebound is further decomposed into output effect and substitution effect. A two-stage decomposition method and a static computable general equilibrium model are developed to achieve this. Five types of energy-specific efficiency improvements are introduced, respectively, in all the production sectors. Results show that improving efficiency of using coal leads to the smallest macro-level rebound. For rebound decomposition, four findings are generalized. First, final consumption shows larger impact on the rebound of secondary energy sources than on primary energy sources. Second, production sectors that are big user of the efficiency-exposed energy source are expected to be key rebound contributor. Third, energy-producing sectors make negative rebound contribution. Results also show that, substitution effect is the predominant mechanism that triggers sector-level rebound. Policy implications are also discussed. [ABSTRACT FROM AUTHOR]

In an effort to address climate change, in 2013 China launched the world’s largest government-driven carbon emission reduction programme, the National Low Carbon Industrial Parks Pilot Programme (LCIPPP). This paper analyses this newly developed pilot program. To deepen our understanding of the causes and the impact of industrial park CO 2 emissions, we use the STIRPAT (Stochastic Impacts by Regression on Population, Affluence and Technology) model and data from 20 pilot industrial parks involved in the LCIPPP for the period 2012–2016. This study quantitatively evaluates the effect of CO 2 emissions on output, energy structure, energy intensity, industrial structure, R&D intensity, and population change in different regions and nationally through an elasticity coefficient method. The results confirm that an increase in output and energy intensity is a dominant contributor to the growth of CO 2 emissions whereas an increase of the share of tertiary industry and R&D intensity has significant effects on reducing CO 2 emissions. The elasticity of energy intensity and renewable energy consumption on CO 2 emissions in the eastern region of China is the highest, indicating that using renewable energy to reduce CO 2 emissions for the industrial parks is more effective in the eastern region as compared to the central and western regions of the country. The elasticity of population is significantly negative in both the central and western areas while it is positive in eastern part of China, thereby illustrating that promoting labour intensive industries will be an effective way to reduce CO 2 emissions for the industrial parks in China’s central and western regions. Our study reveals that differentiated low carbon development pathways should be adopted. Concrete policy implications for reducing CO 2 emissions are also provided. [ABSTRACT FROM AUTHOR]

The key distinction between production-based and consumption-based accounting lies in the way in which trade-embodied emissions are allocated between producer and consumer regions. Yet, these two regions are not necessarily directly connected to each other in supply chains, due to spatial production fragmentation. To better understand the link from the production-based to the consumption-based regional carbon inventories, this paper defines the economic length of carbon transfer (ELCT) as the number of administrative border-crossing involved in the influence process of a region’s final demand on the carbon emissions of another region. Using a multi-regional input-output analysis framework for China, we propose an approach to calculating the ELCT related to a region’s production or demand for domestic consumption or international export. We find that the average ELCT in 2010 is 1.34 and that more than a quarter of interregional carbon transfer crosses provincial borders twice or more. The provincial and sectoral analysis of ELCT reveals that spatial production fragmentation is an important challenge to be conquered for successful implementation of consumption-based climate regulations. [ABSTRACT FROM AUTHOR]

This paper examines the dynamic behaviour of energy intensity across Chinese cities. It employs a dynamic distribution approach which takes economic size into consideration. The results support the existence of convergence in terms of energy intensity among Chinese cities during the sample period. However, bimodality is the dominant characteristic in the long-term distribution using the full sample. The results also show that the distribution dynamics of energy intensity differ greatly among city groups in terms of geographical location, environmental policy, and population size. Weighting by economic size does not change the convergence trend of energy intensity, but has a significant influence on the long-term distribution. Neglecting economic size may overstate the energy reduction performance in Chinese cities. Furthermore, the results also suggest that geographical location, income level, and city population size have a significant impact on the spatial distribution dynamics of energy intensity. However, the formation of convergence clubs is complicated and thus requires further investigation. [ABSTRACT FROM AUTHOR]

The mobilized thermal energy storage (M-TES) system is a promising alternative to conventional heating systems to meet the heat demand for distributed users. This paper provided a techno-economic assessment of the M-TES system based on a case study in China. According to the analysis of the design specifications of the heating system, the suitability of matching the M-TES with existing heating systems was analyzed. The results show that the M-TES is appropriate for use with heating systems with a fan-coil unit and under-floor pipe. Containers and operating strategies for the M-TES with different transportation schemes were also designed. The maximum allowed load of the M-TES container is 39 t according to the discussion of transportation regulations on the road. The cost and income of the M-TES in the study case were estimated, and the net present value (NPV) and payback period (PBP) were also calculated. The best operating strategy is the use of 2 containers and 4 cycles of container transportation per day, with a PBP of approximately 10 years. The M-TES is applicable for middle and small-scale heat users in China. [ABSTRACT FROM AUTHOR]

This paper attempts to explore carbon tax pilot in Yangtze River Delta (YRD) urban agglomerations based on a novel energy-saving and emission-reduction (ESER) system with carbon tax constraints, which has not yet been discussed in present literature. A novel carbon tax attractor is achieved through the discussion of the dynamic behavior of the new system. Based on the genetic algorithm-back propagation neural network, the quantitative coefficients of the actual system are identified. The scenario analysis results show that, under the same tax rate and constraint conditions, the ESER system in YRD urban agglomerations is superior to the average case in China, in which the impacts on economic growth are almost the same. The former’s energy intensity is lower and the shock resistance is stronger. It is found that economic property of YRD urban agglomerations is the main cause for the ESER system of YRD urban agglomerations being superior. In the current YRD urban agglomerations’ ESER system, energy intensity cannot be adjusted to an ideal level by commercialization management and government control; however, it is under effective control of carbon tax incentives. Therefore, strengthening the economic property of YRD urban agglomerations and effective utilization of carbon tax incentives could perfectly control energy intensity, without obvious potential negative impact on economic growth. [ABSTRACT FROM AUTHOR]

There is a large amount of water consumption embodied in energy production. Driven by a growing population and economy, the energy sector will continue to expand, increasing more pressure on the fresh water demand of countries. This paper analyzes the energy–water nexus embodied in international energy trade via a combination of input–output analysis (IOA) and ecological network analysis (ENA). The energy–water element nexus is depicted based on a mixed-unit IOA to investigate the parallel relationship between energy and water. ENA is used to uncover energy–water pathways intertwined in global energy trade and identify the pair-wise relationship between countries according to the energy–water pathway nexus. Then, a case study of the international energy–water nexus of China is conducted. The results of energy–water nexus element analysis show that water use per unit of energy products in the country is much greater than those of other countries. Moreover, indirect water use during energy production deserves more attention, which is often neglected in water resource management. The results of energy–water nexus pathway analysis demonstrate that international energy trade has a positive effect on China’s water condition, mitigating serious water shortage problems but increasing dependency on other countries and regions. Mutual relationships among trading countries are described using utility and control analyses. The results show that system integrality is arguably more critical in determining system behavior than direct effects alone. Europe changes from a beneficiary in direct mutual relationships to a contributor in integral utility mutual relationships, whereas Australia has an opposite change. Although China has a dominant position in direct relationships, it becomes an equal competitor with the USA in utility mutual relationships. China depends heavily on most countries, especially those in South and Central America, the Middle East, Africa, and Australia. The network mutualism index (=0.56) and synergism index (=9.187) indicate that the current global energy trade network has negative relationships within a competitive environment. Finally, policy and economic suggestions are put forward to alleviate the potential impacts of international energy trade on water scarcity in China. [ABSTRACT FROM AUTHOR]

Since coal will be widely used in the next decades, mainly in the developing countries such as China and India, carbon capture and storage (CCS) technologies will have a key role in the containment of global warming. This paper presents a techno-economic comparison between the most promising power generation technologies for a CO 2 -free power generation in a short-term future. In particular, three different power generation technologies have been considered in their conventional (without CCS) and CO 2 -free configurations: (a) ultra supercritical (USC) pulverized coal combustion, (b) oxy-coal combustion (OCC) and (c) integrated gasification combined cycle (IGCC). Process simulation, based on Aspen Plus and Gate Cycle commercial tools, allows to calculate plant performance, including the energy penalty due to the CCS system (10.9% points for USC and 8.7% points for IGCC). In parallel, a detailed economic assessment shows that, among the commercial-ready technologies, USC could be the most convenient solution for power generation without CCS (presenting a levelized cost of electricity – LCOE – of 38.6 €/MW h, significantly lower than 43.7 €/MW h of IGCC), whereas IGCC becomes competitive for CO 2 -free systems (with a LCOE of 59.6 €/MW h, to be compared with 63.4 €/MW h of USC). Moreover, oxy-coal combustion, which is currently not mature enough for commercial-scale applications, promises to become strongly competitive for CCS applications due to its relatively low levelized cost of electricity (62.8 €/MW h). This kind of analysis typically presents strong uncertainties, due to the variability of several key parameters (e.g. fuel and CCS prices, determined by the fluctuation of the international markets, or an improvement of the technologies). Therefore, a sensitivity analysis has been done to determine the effects of these potential fluctuation or the improvement on the economic performance of the plant. [ABSTRACT FROM AUTHOR]

To grasp the characteristics of CO 2 emissions across provinces in China and to determine changes in the centre of gravity of CO 2 emissions over the 2000–2014 period, a gravity model is first used to examine the spatial distribution and centre of gravity of energy-related CO 2 emissions. Then, to explore the main factors driving CO 2 emission changes and to uncover feasible ways to reduce CO 2 emissions, this paper decomposes changes in energy-related CO 2 emissions into a population effect ( Δ C P ), an economic output effect ( Δ C Q ), an industrial structure effect ( Δ C S ), an energy intensity effect ( Δ C I ), an energy structure effect ( Δ C M ) and a carbon dioxide emission coefficient effect ( Δ C U ) at both the national and provincial levels based on the Log-Mean Divisia Index (LMDI) method. The results indicate that (1) energy-related CO 2 emissions rose by approximately 5.46 billion tonnes during the 2000–2014 period, with secondary industry accounting for approximately 80% of total CO 2 emissions. (2) Economic output ( Q ) was the dominant positive driving factor, and energy intensity ( I ) was the dominant negative driving factor. The population changes had a weak positive effect on CO 2 emissions, but the industrial structure effect and energy structure effect varied considerably over the years without showing clear trends. (3) Over multiple spatial scales, the contribution ratios of the factors varied significantly across provinces; in general, the positive driving effects outweighed the negative inhibiting effects. Based on these empirical findings, policy recommendations to further reduce CO 2 emissions are provided. The Chinese central and local governments should make full use of the important inhibiting factors, i.e., energy intensity and energy structure, and strive for breakthroughs in secondary sector. [ABSTRACT FROM AUTHOR]

This paper investigates the temporal and spatial changes of embodied energy transfers via China’s domestic trade over 2002–2007 based on the multi-regional input–output models. Interregional trade of total embodied energy uses approximately tripled between 2002 and 2007, and the total trade volumes in it were equivalent to 38.2% of the national total direct primary energy input in 2002 and 62.9% of that in 2007, respectively. Among all the eight regions, Northwest , Central , Northeast and Southwest were the interregional net exporters and deficit receivers of embodied energy in contrast to East Coast , South Coast , North Coast and Beijing–Tianjin as interregional net importers and surplus receivers. Significant growth of net embodied energy transfers can be identified from central and western inland regions to eastern coastal regions, and the Central region partly served as a “transmission channel”. By considering the interregional embodied energy transfers, regional energy use inventories changed largely, and the spatial and temporal differences between 2002 and 2007 were expanding. Industrial positions in domestic and global supply chains and inherent economic driving factors such as increasing regional consumption level, accelerated investment in fixed assets and rapidly expanding export were the major driving forces for the embodied energy transfers among regions. To form a set of useful tool for controlling energy consumption and achieving the goals for energy saving and emission reduction, China’s governors at all levels deserve to understand the relationships between energy producers and users from the view of demand-driven energy requirements. [ABSTRACT FROM AUTHOR]

Using China’s provincial panel data and national panel data of OECD (Organization for Economic Co-operation and Development) and BRICS (Five major emerging national economies: Brazil, Russia, India, China and South Africa), this paper simulates the scenario-based potential effect of carbon trading in China. Analysis methods included Stochastic Frontier Analysis, Difference-in-differences Model, and Nonlinear Programming Technique. Results indicated that in a theory-based view of carbon trading, the shadow price of carbon dioxide generally rises, with a non-linear negative correlation with carbon dioxide emissions. In different regions, the shadow price of carbon dioxide presents a digressive tendency among eastern, central, and western areas, with divergent gaps between and within areas. When the greatest goal is assumed to reduce national carbon intensity as much as possible at the given national GDP (Gross Domestic Product) (Scenario I), carbon trading has the effect of reducing carbon intensity by 19.79%, with the consideration of Porter Hypothesis effect. If the rigid constraint of national GDP is relaxed, and the dual constraint of both economic growth and environment protection in each region is introduced (Scenario II), the resulting effect is a reduced carbon intensity of 25.24%. China’s general carbon intensity in 2012 was higher than goals set at the Copenhagen Conference, but lagged behind the goal of Twelfth Five-Year Plan for National Economy. This study provides realistic and significant technical support for the government to use in designing and deploying a national carbon trading market. [ABSTRACT FROM AUTHOR]

An industrial heat pump can upgrade heat from a low temperature level to a high temperature level with the aid of an external energy source. It has received considerable attention as an efficient means of waste energy recovery in the recent years in China. This paper summarizes the research work done and advances in the application of industrial heat pump systems in China, including advances in refrigerants, multistage system, double-effect absorption system, compression–absorption system, solar assisted system, and chemical heat pump system. Industrial heat pumps used in three industrial fields (drying of wastewater sludge, crude oil heating in oil field, and process heating in printing and dyeing) are discussed in detail. Three basic problems in designing an engineering heat pump system, i.e., selection of the type of heat pump and determination of its capacity, energetic and exergetic analyses of the heat pump, and estimation of investment payback time are discussed in the above three industries, respectively. Further research needs in China on industrial heat pumps are proposed, which may also be beneficial to the international community. [ABSTRACT FROM AUTHOR]

This work investigates different scenarios for electric vehicle (EV) deployment in China and explores the implications thereof with regard to energy portfolio, economics and the environment. Specifically, we investigate how to better deliver the value of EVs by improving designs in the power system and charging strategies, given expected developments by 2030 in both the power system and EV penetration levels. The impact of EV charging is quantified by applying an integrated transportation-power system model on a set of scenarios which represent uncertainties in charging strategies. We find that deploying EVs essentially shifts the use of gasoline to coal-fired power generation in China, thus leading to more coal consumption and CO 2 emissions of the power system. Economically, EVs outperform gasoline-powered vehicles in terms of average fueling costs. However, the impact of EVs in terms of CO 2 emissions at the national level largely depends on the charging strategy. Specifically, controlled charging results in more CO 2 emissions associated with EVs than uncontrolled charging, as it tends to feed EVs with electricity produced by cheap yet low-efficiency coal power plants located in regions where coal prices are low. Still, compared with uncontrolled charging, controlled charging shows absolute advantages in: (1) mitigating the peak load arising from EV charging; (2) facilitating RES generation; and (3) reducing generation costs and EV charging costs. Hence, in light of this trade-off of controlled charging with the goals of energy security, economic efficiency and reducing environmental impacts, policy interventions in the Chinese power system should opt for controlled charging strategies in order to best realize the benefits of EVs. Accordingly, this paper proposes that increasing the use of cleaner forms of electricity generation, such as RES power and gas power, and establishing energy efficiency and CO 2 emission regulations in power dispatch are critical for China. Lastly, this work illustrates what the optimized charging profiles from the power system perspective look like for different regions. These results can inform Chinese policy makers in creating a better integration of the transportation and the power system. [ABSTRACT FROM AUTHOR]

Since 2003, Mainland China has been promoting the public–private partnership (PPP) procurement model in the waste-to-energy incineration sector to reduce the waste burying rate and improve environmental quality. Five critical risk factors (CRFs) that affect the construction and operation of waste-to-energy incineration projects have been identified from real-life risk events of 14 PPP waste-to-energy incineration plants through content analysis. These risk factors are insufficient waste supply , disposal of non - licensed waste , environmental risk , payment risk , and lack of supporting infrastructure . A recently completed PPP waste-to-energy incineration plant, the Shanghai Tianma project, was investigated to learn from the effective management of CRFs. First-hand data about the Shanghai Tianma project was collected, with a focus on project negotiation and concession agreement. Lessons learned about risk management were acquired. This paper presents a detailed study of the contractual structure, risk sharing scheme, risk response measures to CRFs, and project transfer of a PPP project. The study results will provide governments with management implications to prepare equitable concession agreements and benefit private investors by effectively mitigating and managing risks in future PPP waste-to-energy incineration projects. [ABSTRACT FROM AUTHOR]

Abstract: The heavy losses of China’s thermal power industry have attracted lots of attention. Besides the adjustment of power price, how to improve its poor performance becomes an important issue. Combining the cost Malmquist with the Luenberger index, this paper introduces a new method to measure the cost efficiencies of China’s 30 provinces’ thermal power industries with carbon emissions considered. Furthermore, we quantify the influence of input price changes on the price effect (PE) using panel data regression. The empirical results indicate that: (1) combining dynamic efficiency with static efficiency, the results will be more objective; (2) compared with previous emphasis on adjusting external factors, the future policy reforms should incentivize corporations to improve their management; and (3) external fuel price change is not the direct reason for cost efficiency fluctuation, and the thermal power industry should make more efforts to improve their technical efficiency. [Copyright &y& Elsevier]

Abstract: Effective spatial planning is crucial for cost-effectively and sustainably developing biomass energy resources due to the diffuse nature of biomass and high transportation cost. Using the spatial analysis technology, economic models and scenario analysis, this paper presents a spatial planning framework to identify the appropriate developing areas of biomass energy at regional level. The methodology is applied in a case study of Fujian Province, China. Firstly, spatial distribution of two kinds of biomass resources and the technical potential, i.e. the amount of power generation from agricultural and forestry residues in each supply area, were estimated by incorporating the spatial data and the statistical data. The results indicate that total technical potential of agricultural and forestry residues is estimated at 25.13TWhy−1, equivalent to approximately 19% of total electricity consumption in Fujian in 2010. In the second step, the economic analysis assesses the cost of biomass generation for each supply area on the basis of current market conditions. Ranking of the supply areas is then performed by using the priority development index (PDI), which can measure the priority of each biomass supply area by combining several influencing indicators. Finally, the selection of supply areas for power plants can be carried out according to its order in PDI until the total planed capacity in the region is met. The priority of the subregions and the corresponding cost of biomass generation for different planning scenarios can be explicitly visualized. The methodology can be applied to a wide area and can support the local authorities to define and implement a strategy for future biomass energy development. [Copyright &y& Elsevier]

Abstract: To find the key impact factors of CO2 emissions to realize the carbon intensity target, this paper examined the impact factors of population, economic level, technology level, urbanization level, industrialization level, service level, energy consumption structure and foreign trade degree on the energy-related CO2 emissions in Guangdong Province, China from 1980 to 2010 using an extended STIRPAT model. We employed ridge regression to fit the extended STIRPAT model. Empirical results indicate that factors such as population, urbanization level, GDP per capita, industrialization level and service level, can cause an increase in CO2 emissions. However, technology level, energy consumption structure and foreign trade degree can lead to a decrease in CO2 emissions. The estimated elastic coefficients suggest that population is the most important impact factor of CO2 emissions. Industrialization level, urbanization level, energy consumption structure, service level and GDP per capita are also significant impact factors, but the other factors such as technology level and foreign trade degree are less important impact factors. Some policy recommendations are also given on how to mitigate the growth of CO2 emissions. [Copyright &y& Elsevier]

Abstract: Renewable energy is one of the possible solutions when addressing climate change. Today, large-scale renewable energy integration needs to include the experience to balance the discrepancy between electricity demand and supply. The electrification of transportation may have the potential to deal with this imbalance and to reduce its high dependence on oil production. For this reason, it is interesting to analyse the extent to which transport electrification can further the renewable energy integration. This paper quantifies this issue in Inner Mongolia, where the share of wind power in the electricity supply was 6.5% in 2009 and which has the plan to develop large-scale wind power. The results show that electric vehicles (EVs) have the ability to balance the electricity demand and supply and to further the wind power integration. In the best case, the energy system with EV can increase wind power integration by 8%. The application of EVs benefits from saving both energy system cost and fuel cost. However, the negative consequences of decreasing energy system efficiency and increasing the CO2 emission should be noted when applying the hydrogen fuel cell vehicle (HFCV). The results also indicate that developing renewable energy is crucial for transportation electrification. [Copyright &y& Elsevier]

Abstract: This paper estimates the affordability of increased energy costs for Chinese companies due to the possible introduction of carbon pricing policies. The data were collected from 121 valid respondents in Taicang, China, using a multiple-bounded discrete choice (MBDC) format. Estimations indicate that a mean of 8.5% in energy cost increase would be acceptable for the surveyed companies on the whole. Companies from chemical and dyeing industries expressed a slightly higher affordability, with the mean of acceptable energy cost increase being 9.8% and 9.4% respectively. Econometric analysis identified two determinants of affordability for companies. One is the current energy price level, having a significant but negative relationship with affordability. The other is the energy management strategies of companies, significantly and positively associated with affordability. Calculations indicate that the mean of affordable energy cost increases for companies roughly equals a carbon price of 60 CNY/t-CO2 (about 9 USD/t-CO2). This result may be used as a referendum during the development of carbon tax policy and the establishment of a domestic carbon emissions trading scheme in China from the perspective of individual companies. [Copyright &y& Elsevier]

Abstract: China has set ambitious goals to increase the use of renewable energy. Developing renewables in rural areas is also one of the most important energy strategies. This paper examines rural social acceptance of renewable energy deployment taking Shandong as a case study via a field questionnaire survey. Theory of planned behavior is adopted to establish an analytical framework, and a logit model is used to examine possible determinants of local social acceptance. The results show that rural residents are generally supportive renewable energy development given its positive impacts on environment. A stated willingness to pay more for renewable electricity is taken as a variable representing an individual’s behavioral intention. The probability of occurrence of positive intention is found to increase with household income, individual knowledge level and belief about costs of renewable energy use but decrease with individual age. Residents with higher level of income are more likely to be willing to pay more for green electricity, so are the younger people. Enhancive knowledge and understanding about renewable energy (for instance, the cost) would be conducive to win public acceptance of renewable energy deployment. [Copyright &y& Elsevier]

Abstract: In this paper, we present a process-based model to estimate the well-to-tank (WTT) costs of vehicle fuels (gasoline and diesel). The model breaks down the WTT process into four stages, i.e., crude oil sourcing (import and extraction), crude oil transportation, crude oil refining, and vehicle fuel transportation and distribution, which can provide high-resolution data for the WTT cost components. Using this model, we further develop an empirical study of China. The results obtained from the study indicate that the price of imported crude oil is the dominant factor affecting the WTT costs of vehicle fuels in China and that the cost of crude oil refining also has a relatively large influence. By comparing the costs with the prices of vehicle fuels under the volatile price of imported crude oil, we illustrate the unstable margin caused by China’s current pricing policy, which causes a distorted price signal and fiscal risks. The key findings derived from the empirical study reveal that the WTT cost is an essential guide for altering the vehicle fuel price with the aim of not only smoothing the impacts caused by the volatile price of crude oil price but also reflecting the correct oil price signal and reducing the fiscal risks. [Copyright &y& Elsevier]

Abstract: The residential sector is the second largest consumer in China with great room for energy consumption growth, as well as the related carbon emissions. Thus, how to reduce the growth rate of carbon emissions is crucial for realizing the target of energy conservation and emission mitigation in the residential sector. Based on a bottom-up framework with survey data and official statistics, this paper examines the changes of aggregate residential carbon intensity, and analyzes its driving factors from an end-use perspective over the period of 1996–2008. The Adaptive Weighting Divisia with rolling base year index specification is applied to identify the quantitative effects of driving components and their further decomposing results of end-use activities. Results show that, the residential aggregate carbon intensity has grown rapidly since 2002 in both urban and rural China. The changes in primary fuel mix for electricity and heat generation have an overall negative but insignificant effect on the residential aggregate carbon intensity, while the effect of final energy structure is positive with a rising tendency. The significant impact of changes in energy intensity shift from negative to positive over time, and contribute more to a decline than to an increase. The driving force arising from the residential end-use mode has the highest contribution to the increase of aggregate carbon intensity. Finally, some policy implications are proposed to effectively slow down the accelerated rate of the residential aggregate carbon intensity. Guiding households towards energy-saving behaviors is recommended as a wise and first policy choice. [Copyright &y& Elsevier]