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This paper explores opportunities for effective policy intervention for residential energy savings in southern China, by analyzing achievable potential of residential energy savings in the city of Xiamen as a case study. In contrast to static technical and economic potential analyses, the achievable potential analysis is based on dynamic energy consumption projections, which consider two real-world factors: (1) gradual ramping-up adoption process of advanced technical measures; and (2) consumers’ adoption of these measures. A bottom-up type Residential Energy Consumption (REC) projection model specifically tailored for southern China was developed in this paper, based on the general logic and calculation principles utilized in the U.S. EIA’s “National Energy Modeling System (NEMS),” and the adoption theory of advanced technical measures proposed by Kastovich. This REC projection model was then used as a policy analysis tool to quantitatively evaluate the impact of various policies on residential energy savings in the case study city of Xiamen. The analysis of the Xiamen case shows that although there is a significant technical potential for residential energy savings in the city (about 20.9–24.9%), the maximum achievable potential (MAP) in 2020 is only about 8.3–8.4% of that year’s business-as-usual baseline consumption. Moreover, with existing policies only about one-fourth to half of the calculated MAP is likely to be achieved by 2020. These findings indicate that in order to realize a larger share of achievable potential for residential energy savings in China, additional and more effective polices are needed. [ABSTRACT FROM AUTHOR]

Hydrogen, as a clean and efficient energy source, is important in achieving zero-CO 2 targets. This paper explores the potential of hydrogen geologic storage (HGS) in China for large-scale energy storage, crucial for stabilizing intermittent renewable energy sources and managing peak demand. Despite its promise, HGS faces challenges due to hydrogen's low density and viscosity, and its complex interactions with geological formations and microorganisms. This review offers a comprehensive overview of the current research status for HGS, with a particular focus on highlighting the main challenges confronting China. These difficulties and challenges primarily arise from complex geological conditions and the absence of fundamental parameters within potential reservoirs, including depleted oil/gas fields, salt caverns, and brine aquifers. Additionally, we have synthesized the current applications of machine learning (ML)as a potential solution. Key challenges are examined, such as the effects of operational parameters (e.g., cyclical injection-production and injection rates) on HGS efficiency, which can influence phenomena such as hydrogen fingering and caprock integrity. This review also looks into the insufficiently understood hydrogen-water-rock geochemical reactions under diverse temperatures and pressures, a gap that hampers the development of predictive numerical simulations and raises concerns about hydrogen leakage due to changes in porosity and permeability. Additionally, the paper addresses the limited knowledge about the metabolic mechanisms of subsurface microorganisms under extreme conditions, highlighting potential risks of hydrogen leakage and groundwater contamination. These microorganisms can metabolize hydrogen, producing gases such as CH 4 and H 2 S, which may cause steel corrosion. Furthermore, the study assesses the distribution and prospects of three primary methods for pure hydrogen storage in China, considering the current state of hydrogen development and relevant government policies. The role of ML in advancing HGS is also discussed, offering insights into future research directions. This review not only scrutinizes the scientific challenges of HGS but also underscores its potential, guiding future simulation and practical engineering applications in this field. • HGS is feasibility in China through policy examination and potential site analysis. • Geochemical and microbial reactions jeopardize to reservoir integrity and H 2 quality. • Elucidating the present application and future prospective for ML in HGS. • Summarizing the key challenges associated with achieving large-scale HGS. [ABSTRACT FROM AUTHOR]

Abstract The recent recurrence of wind curtailment in China underscores the rigidity and vulnerability of China's electricity regulatory regime. Using the theory of "fragmented authoritarianism", this paper identifies key institutional barriers causing wind curtailment in China and develops a framework for analyzing China's electricity regulatory regime. Specifically, the fragmented institutional authorities and responsibilities lead to departmentalism and coordination problems, both vertically and horizontally. The resulting mismatches in the investment, generation, and distribution of the electric power sector reflect direct causes for China's wind curtailment. This paper recommends that an electric power system reform with established regional spot markets is needed to fix China's wind curtailment problem. Highlights • Complex reasons lie behind serious wind curtailment in China. • Wind curtailment has its roots in the electricity regulation regime of China. • Fragmented authority causes coordination problems in the power sector. • Mismatches permeates the investment, generation and distribution of power. • A regional power spot market is needed to fix the wind curtailment problem. [ABSTRACT FROM AUTHOR]

Abstract Whilst a plethora of literature has viewed technological progress as one of the critical influencing factors in relation to energy consumption and CO 2 emissions, little effort has been made to identify the sectoral differences in the relationship between technological progress and CO 2 emissions. Thereby, this paper remedies the inadequacies in the extant literature by empirically investigating the impact of technological progress on CO 2 emissions, specifically taking into account its heterogeneous effect in various economic sectors. This paper first decomposes the effect of technological progress as taking place in heavy industry, in light industry, in construction industry, and in service industry. A panel quantile regression approach and a balanced city panel data model are then applied, covering the period 2001–2013 in China. The empirical results show that technological progress in heavy industry and light industry surprisingly facilitates a higher level of CO 2 emissions, despite its prominent contribution to energy efficiency improvement. Meanwhile, as distinct from the effect it shows in the heavy and light industries, technological progress in construction and service industries exerts a negative effect on CO 2 emissions. Additionally, this paper further discovers that the strength of the multiple impacts of technological progress also varies with the level of emitters. By studying the heterogeneous effect brought about by technological progress in different economic sectors and emitters, this paper provides a comprehensive understanding of the relationship between CO 2 emissions and technological progress. Highlights • The study considers the sectoral and scale heterogeneity of technological progress in relation to CO 2 emissions. • We apply a panel quantile regression approach to balanced city-level panel data. • Technological progress within different economic sectors exerts different effects on CO 2 emissions. • The role of technological progress in moderating energy intensity varies across emitters. [ABSTRACT FROM AUTHOR]

Abstract In recent years, China's wind power industry has developed rapidly, and become the global wind power leader. At the same time, China's wind power industry is also facing many problems and challenges. In this paper, a comprehensive assessment is presented to reveal the development history of China's wind power industry, power demand and cost, regional distribution of wind power, wind turbine manufacturers, and government incentives to wind power industry. Subsequently, future development and challenges are proposed, focusing on the challenge of wind power integration and consumption, the challenge of management and market competition mechanism, and the challenge of large-scale and rapid development. Finally, the corresponding measures are put forward. The fundamental goal of this paper is to understand the history, current situation and future challenges of China's wind power industry. Highlights • A comprehensive assessment on the development of China's wind power industry is presented. • The development history of China's wind power and energy demand are introduced. • Multi factors related to China's wind power industry are investigated. • Future challenges and corresponding measures of China's wind power industry are proposed. [ABSTRACT FROM AUTHOR]

The Chinese government has made significant effort to promote biomass based electricity generation in recent years. Yet, little is known about consumers’ preferences for biomass electricity and associated environmental impacts. This paper uses discrete choice experiments (DCE) to investigate Chinese consumers’ preference for electricity generated from various biomass sources. Based on 548 responses, the paper finds that Chinese households are willing to pay a premium of around 27 Yuan per month or 0.20 Yuan per kilowatt hour (kWh) to replace coal-fired electricity. Among the various biomass sources, electricity generated from agricultural and forestry biomass is most preferred, followed by biogas electricity and waste-to-energy. It is also found that respondents have a significant willingness to pay for reducing haze. Consumers’ household structure and environmental awareness also affect their preference for biomass electricity. These results have significant implications for the prioritization, design and communication of biomass promoting schemes. [ABSTRACT FROM AUTHOR]

Recently China's wind power industry is challenged by many problems such as wind power integration and wind curtailment, which seriously hinders the development of onshore wind power. Since China's policy has a direct and significant influence on wind power industry, it is vital to analyze and evaluate published policies. This paper explores in detail 134 China's onshore wind power policies from 2005 to 2015 so as to provide analytical support for future formulation and implementation of wind power policy. Based on policy summary from equipment manufacturing industry, wind farms and power grid industry, this paper evaluates the policies from the perspective of overall plan, support policy and policy implementation using fitting method, game theory and empirical analysis. The results indicate that China's wind policy is gradually becoming perfected, for example, there are more reasonable objectives and improved support policies. However, many problems remain to be solved, like unreasonable planning, imperfect support policies, immature trading systems and uncoordinated actions among interest related parties. Furthermore, combined with international experiences, suggestions on improving China's wind power policy are proposed from seven aspects. [ABSTRACT FROM AUTHOR]

As a secondary energy, electricity is an important channel between original energy and energy consumers. Electricity price is a critical factor for the interests of all involvers in the electric power market. It also plays an important role for the sustainable development of energy and environment. Smart grid is a new conception proposed in recent years to improve the intelligent level and increase the efficiency of electric power system operation. Smart grid combines and integrates information technology, communication technology and intelligent control technology with tradition power system. To achieve the many objectives of smart grid, Demand response (DR), as an effective technique of demand side management (DSM), refers to the changes in electricity consumption behavior of users in response to the dynamic price or incentive rewards. Price based demand response (PBDR) is one of the two major DR programs. In this paper, we first introduce the pricing theories in economics, the pricing of electricity and the development of electricity pricing in China. Then, we present a detailed discussion on the PBDR strategies in the DSM of smart grid. Also, the research status of PBDR is reviewed. Finally, it gives a summary of the whole paper in the last Section. [ABSTRACT FROM AUTHOR]

A comprehensive review of the thermal power industry and the accurate forecasting of carbon emissions can provide valuable information to improve energy efficiency and act as a tool for policy makers to realize sustainable and low-carbon emissions from the thermal power industry. In this paper, we study the low-carbon development of China's thermal power industry based on an international comparison from three perspectives: review, analysis and forecast. Initially, we review both the international and national energy consumption of China; although gaps in energy efficiency still exist between China and countries with advanced thermal power technology, China's thermal power industry is gradually following a low-carbon development route. Then, we analyze low-carbon technologies for thermal power units, including ultra-super-critical technology, integrated gasification combined cycle technology, and carbon capture and storage technology and present a design for environmental protection technology for thermal power units. Carbon emissions should be effectively and successfully handled to improve the prospects of China's thermal power industry. Therefore, this paper forecasts carbon emissions by using a hybrid grey model that is optimized by the firefly algorithm and adjusted by weakening buffer operator based on the calculated carbon emissions. If China's carbon emissions from the thermal power industry increase according to the present rate, China will have difficulty in realizing its carbon reduction target by 2020. Finally, related future policies for the 13th Five-Year Plan of China are proposed based on low-carbon policies around the world with regard to financial, technological and industrial aspects to help the thermal power industry achieve healthy and low-carbon development. [ABSTRACT FROM AUTHOR]

Efforts to deal with anthropogenic environmental impacts are focussed predominantly on cities. This paper applies metafrontier-data envelopment analysis (DEA) to evaluate the capacity of 286 Chinese cities of different sizes and in different regions towards green growth development and assesses gaps in their efficiencies. The determinants of efficiency, including regional and population size effects, were estimated using logistic regression model. Results show that the state of green growth efficiency was different for cities of different sizes and from different regions, and gaps existed compared to the best production frontier. The paper suggests that more endeavours are required for environmental and social dimensions, and a short-term target can include achievement of group frontier efficiency and significant reduction in technology gap ratios. Owing to significant population size effect, policy programs should have target plans for cities of different sizes as they differ in performance and capacity building. [ABSTRACT FROM AUTHOR]

Many countries gain great benefits by applying lean methods to construction industries. China, as a great construction country, also has advocated the implementation of lean construction technologies in recent years. However, the current status and extent of lean construction implementation in China have not been well-studied. The objectives of this research are: 1) to evaluate the extent of implementation of lean construction in China, and 2) to explore the influencing factors of lean construction in China's construction firms. In this paper, two construction firms with different sizes, organizational structure, business scope, and culture are evaluated. Data was collected from interviews, questionnaires, and meetings. The findings of this paper include: 1) different firms have different implementation levels of lean construction, and 2) the key determinates of lean construction implementation in China are the knowledge of lean construction, organizational structure and culture, and market factors. [ABSTRACT FROM AUTHOR]

In 2013, “haze-fog” became an annual buzzword in China; this “haze-fog” is primarily attributed to coal combustion. If coal continues to be used as it has been previously, China will suffer as a result of air pollution. Different from coal, electricity is a highly efficient energy source with no pollution emissions. Electric power substitution (EPS) for coal can reduce air pollution and transmit electricity to a load intensive area by an ultra-high voltage transmission project that can promote renewable energy accommodations in remote areas. However, EPS was proposed in 2013 and is still in the initial stage. The present paper studies the relationship between coal and haze-fog, proposes an EPS action mechanism, and summarizes the EPS market and policies. A SWOT model has proved to be an efficient tool to analyze the internal and external competitiveness of a system. Therefore, to fully study the current development status of electric power substitution in China, this paper adopts a SWOT model to analyze the strengths, weaknesses, opportunities and threats of EPS. The conclusion is drawn that EPS is a good substitution for coal, but increased interest and use of EPS in China still needs support, including energy price marketization, electricity price subsidy, UHV optimization, clean coal technology innovation, and so on. This research can promote optimization in the energy structure and provides policy makers with good references and a clear direction in EPS development. [ABSTRACT FROM AUTHOR]

Based on an analysis of 9 solar cell enterprises from 2008 to 2014, this paper examined the Chinese solar cell industry's market structure and performance. The empirical results reveal that China's photovoltaic (PV) cell market supports the X-efficiency structure hypothesis and that enterprises with higher levels of production technology and management earn higher profits. However, market concentration, market share, and scale efficiency are not significantly related to corporate performance. In addition, reasonable and effective control of the debt-to-assets ratio of such enterprises is conducive to revenue improvement. Based on these conclusions, this paper offers suggestions on how to improve the performance of the PV cell industry from the perspectives of enterprise and government. The research results have substantial significance for the promotion of enterprise reform and the optimization of industrial resource allocation. [ABSTRACT FROM AUTHOR]

Aquavoltaic is an essential tool in overcoming the ground-based photovoltaic (PV) development barrier and achieving China's carbon neutrality target. After summarizing aquavoltaic technologies and global cases, this paper assesses the effectiveness of 292 aquavoltaic plants in China using the data envelopment analysis (DEA) method. Six essential input and output variables are included: installed capacity, power generation, occupied water area, construction cost, PV modules, and global horizontal irradiation to offer an appropriate measure of aquavoltaics efficiency in China. This study also performed correlation analysis for PV module type, PV mounting mode, and ownership based on a Tobit regression model. The results show that the efficiencies of China's aquavoltaics have improved significantly between 2014 and 2022, with the emergence and popularity of high-power PV modules playing a pivotal role. Furthermore, the regional study discovered provincial efficiency varies substantially. This paper also gives two reference indicators for new aquavoltaics in the future. • The global aquavoltaic technologies and cases were summarized. • The history and status quo of aquavoltaics in China were reviewed. • Aquavoltaics' energy efficiency has increased significantly in China. • The high-power PV modules have a positive impact on efficiency growth. [ABSTRACT FROM AUTHOR]

This review paper examines pathways towards solar energy in China by examining two different solar energy technologies, namely solar photovoltaic (PV) and solar water heaters (SWH). The paper investigates these two case studies to understand how different pathways for low carbon innovation are promoted and challenged by China's changing financing and policy-making, and how they relate to changing practices among producers and consumers. The paper finds two distinct approaches to solar energy. Chinese solar PV is predominantly produced for the export market, relies on intellectual property-intensive technology and has received much financial and political support from the central and provincial governments. On the other side, solar water heaters are an indigenous Chinese technology that is found everywhere across China, especially in rural areas. They have developed from grass-roots levels to mass products with very little central government support. Although being largely absent from high-level discussions and policies, solar water heaters could contribute a lot to China's low carbon transitions that are driven at the local level. [ABSTRACT FROM AUTHOR]

In this paper we focus on understanding the rapid rise of the Chinese PV industry and its profound impact on the global PV industry. We investigate how it is possible that a nation that is still focusing on catching up in terms of industry, innovation and technology has been able to bring manufacturers from leading industrialized nations to their knees. This paper applies the framework of the Technological Innovation System (TIS), and also takes the context into account, in terms of the Chinese national innovation system (NIS) and the global PV TIS. It concludes that the rise of the Chinese PV TIS can be explained by the interaction of three context factors (the change in Chinese institutions, technology transfer, and the large European market) and specific PV TIS dynamics. The study empirically shows the importance of extending the national TIS studies by including the influences of context factors. [ABSTRACT FROM AUTHOR]

The significant variation in building׳s energy intensity is partly due to the large number of distributed energy users characterized by heterogeneous lifestyles and nonuniform consumption behaviours. Understanding the degree of variation and its cause is critical to designing appropriate policies for energy efficiency improvement. This paper aims to provide a data-based benchmark of buildings energy performance in China and investigates the facts and causes of large variations in energy consumption across buildings based on updated and harmonised dataset. Specifically, the paper is the first in literature to decompose aggregate heating consumption in northern urban China and reallocate the disaggregate data to relevant residential and commercial building energy use, which makes it consistent to conduct international comparison of building performance in terms of primary energy intensity. It is found that buildings energy performance exhibits a sizeable heterogeneity varying with building typology and climate zones in China. Heating and cooling energy consumption for residential buildings located in HSCW climate zone may differ by a factor of 4–10 depending on the technology and energy supply mode, whereby nontechnical interventions may have significant impacts on total energy demand in the built environment. In particular, our analysis results point to the importance of making greater efforts in the commercial sector. Commercial buildings are found significantly more energy intensive than their residential counterpart, mainly due to the fact that BEE policy has been poorly implemented and architectural design has not been optimised in commercial sector. An estimate suggests that improving energy efficiency in the commercial sector may contribute to one-fifth of total energy savings potentials by 2020 in line with the IEA׳s 450 ppm scenario. It is necessary for Chinese building authorities to incorporate the heterogeneity characteristics across different climate zones and building typologies into BEE policy portfolio to effectively curb energy consumption related carbon emissions. [ABSTRACT FROM AUTHOR]

This paper highlights the specificities of the patterns of low carbon energy technological innovations in selected Asian emerging economies. China and the members of ASEAN-4 (Thailand, Malaysia, Indonesia and the Philippines) are included in this analysis for their identical structure of developing economy. We outline a synthetic framework to cluster together the technologies with similar characteristics and analyse the changes of these characteristics over time. This is in order to elucidate the scope of sectoral composition and specialisation of the selected economies, and thereby understand the relative impact of science-based low carbon energy technologies on the niches of technological excellence. The findings show that China was keen to pursue its diversification strategy and develop its capability in low carbon energy technologies since the turn of the millennium. However, China has been gradually losing its momentum in more traditional areas like biomass, hydroelectric power, natural gas and fossil fuels. The ASEAN-4 economies, on the other hand, are showing interest in building a number of niches of technological excellence. This highlights a contrasting relative technological advantage between larger and smaller economies. Our findings also indicate that many of the low carbon technologies in selected economies have yet to attain strong scientific grounding for development. The findings of this paper are expected to provide some insights into low carbon energy technological development of emerging economies, and be useful for other developing economies to establish their strategic moves for energy technology development. [ABSTRACT FROM AUTHOR]

Domestic wind turbine manufacturing sector in China has experienced development stages starting from scratch to mass production. During the 11th FYP period (2006–2010), the main goal of wind power policy in China is to promote the commercialization of wind power by large-scale deployment of wind farms. This goal has been realized to a great extent and now the cost of wind power generation is nearly comparable to coal-fired power generation in China. The industry policy, which devotes to mass production of domestic wind turbines, is also largely successful. The purpose of the paper is to provide an overview on wind turbine manufacturing sector in China. The policy evolution in different stages, achievements and challenges pertinent to the sector are addressed in the paper. Key findings are that the misleading industry policy, which provides strong incentive to blind entrance and “competition for scale and price” and restrains innovation as well, is the key obstacle for the sustainable development of the sector. Deficient technology standard and qualification system and the misplaced franchise bidding system also indulge vicious competition and oversupply. Creating a level playground for all turbine supplies, providing strong incentive to innovative manufacturers, establishing thorough and practicable standard and qualification system, and fine-tuning the directive of the franchise bidding system towards technology and service are the primary policy implications proposed by our study. [ABSTRACT FROM AUTHOR]

Owing to its high resource predictability and power density, tidal current energy has garnered extensive attention worldwide, from both academia and industry, in the past decade. Currently, China is also accelerating the development of tidal current energy because of the abundant tidal current resources along the country's highly populated southeast coasts. The objective of this development is to meet the increasing power demands for coastal cities, islands, and various maritime applications. The tidal current energy conversion systems in China have undergone rapid technological advancements in the past ten years, particularly after the deployment of several large-sized tidal current turbines. Although several review papers have covered the evolution of tidal current energy converters (TCECs) in China since the 1980s, a comprehensive update of the past decade has not been systematically reported, which might be of significant interest to researchers, developers, and investors worldwide. In this paper, we present the state-of-the-art TCEC technological developments in China in terms of scale, efficiency, reliability, and other innovations. Their technology readiness level and problems are also discussed. It is found that TCEC development in China has been diverging toward two different directions: large-sized turbines for grid connection and small-scale turbines for diverse applications in marine environments. Finally, we present the current challenges and future trends of TCEC advancement in China. • Existing tidal current energy converters in China are reviewed. • Development trend of large-scale equipment and diversified applications is analyzed. • Challenges and suggestions for the tidal current energy technology are summarized. [ABSTRACT FROM AUTHOR]

As a good power supplement form of super power and large-scale energy base, distributed energy has the characteristics of less investment and flexible power generation. Facing with the double pressure of the sustainable development of energy use and environmental protection, it has become an efficient solution to meet the demand of load growth, reduce environmental pollution and improve the comprehensive utilization of energy and the reliability of power supply. However, the development of distributed energy starts relatively late in China and confronts many difficulties. So this paper analyzes the present development situation and existing problems of the distributed energy in China. Then it elaborates from the aspects of policies and regulations, technical specifications, price policy and grid-interconnection codes. At last, this paper puts forward relevant policy suggestions of the guarantee mechanism of distributed energy. This paper argues that, with the attention of the development of distributed energy increasing, a series of policies to promote the construction and interconnection of distributed energy will be introduced, and distributed energy will get scaled development in China. [ABSTRACT FROM AUTHOR]

Because China has emerged as the largest greenhouse gas (GHG) emitter in total annual emissions, to accelerate the pace of GHG emission reduction in China is important to the success of global efforts in addressing climate change. Carbon trading is a market mechanism and key instrument in the mitigation of climate change. This paper explores the policy process and development state to date of China׳s carbon-trade market to understand the emergence and development of that market and to understand what barriers are hampering China׳s carbon-trade market development. To achieve this goal, this paper introduces and analyzes China׳s status in the international market, examines the factors driving carbon-market launching by the Chinese government, and traces the development of mandatory carbon-emission trading and voluntary emission trading. It is argued that China׳s carbon-trading market is confronted with challenges such as the absence of a functional carbon-trading market, inaccuracy of the quota allocation, an imperfect trading mechanism, and lagging legislation. At the present stage, shortcomings such as having no real-time carbon price and dominated spot transactions differentiate China׳s trade market substantially from a functional system. A quick market integration of China׳s carbon market appears remote. It is suggested that specific measures be taken to promote the development of the Chinese carbon-trading market. [ABSTRACT FROM AUTHOR]

Energy poverty has got increasing attention during the latest three decades. Measuring energy poverty is the premise of policy making to alleviate energy poverty. There is no unified energy poverty measurement that has been widely accepted. This paper reviews the commonly used energy poverty measurements through classifying them into three categories: energy service availability, energy service quality, and satisfaction of energy demand for human׳s survival and development. This paper also analyzes the suitability of the commonly used energy poverty measurement for China from the prospective of data availability and index applicability. Furthermore, we construct a new energy poverty comprehensive evaluation index in this study, and the index is illustrated to evaluate regional energy poverty in China. The evaluation results indicate that China׳s energy poverty showed an alleviating trend from 2000 to 2011, and during this period, China׳s energy service availability improved slightly; energy consumption cleanliness showed no significant change; energy management completeness decreased with fluctuations; and household energy affordability and energy efficiency improved continually. In addition, China׳s regions show different characteristics of energy poverty. For example, Middle reaches of Yangtze River region showed the worst energy availability and Eastern coastal region showed the worst energy management completeness. Several policy implications for energy poverty alleviation are also proposed in this study, including, for instance, increasing investment on energy infrastructure, and spreading energy management organization in rural area; decreasing relative cost on household commercial energy consumption, and encourage the utilization of modern, clean and efficient household energy consumption equipment. [ABSTRACT FROM AUTHOR]

In recent years, an increasing number of Chinese wind power firms have been going international in search of global market for development channels. By employing qualitative research and case study methods, this paper examines the export scale and markets of China’s wind turbines, the market entry modes and location choices of China’s outward foreign direct investment (FDI) in the wind power sector, identifies the determinants and prospects of Chinese wind firms’ internationalization, as well as provides policy implications. It is found that Chinese wind power firms has chosen to internationalize very differently from the Uppsala model in that the exports and FDI of Chinese wind power firms both took place around 2008, and the exports and FDI of Chinese wind power firms are closely linked. The determinants of Chinese wind firms’ internationalization are the competitive advantages of leading Chinese wind firms and the intensified domestic market competition, followed by Chinese government support for internationalization and the attractive overseas market. The prospects of Chinese wind firms’ internationalization are bright but challenging. Drawn on this analysis, conclusions and three policy implications are provided at the end of the paper. This paper contributes to the study of China’s wind power sector from a new perspective. [ABSTRACT FROM AUTHOR]

China is vast, abundant and particularly plentiful in energy sources, due to which it has obtained remarkable achievements on economy. However, its energy structure is too simple to support the sustainable development of economy as coal still contributes to the majority of energy consumption in China. As a consequence, Renewable Energy Law was enacted in 2005, and Chinese government announced a series of policies to boom renewable energy industry. Subsidy policy is one of the major forms of these policies. This paper aims to present these subsidy policies and to analyze their effects according to relative data in energy industry 2005–2013, to find out the deficiencies and enlighten possible policy improvements. The original intentions and abstracts of 5 different levels of subsidy related policies are summarized, and the effects in reality are attentively analyzed. It can be concluded that subsidy policies have different short-term effect on different renewable energies, and they all show some negative effect to a certain extent. 6 core problems are summarized in this paper, and remedy strategies are suggested. [ABSTRACT FROM AUTHOR]

Influenced by the international environment, price of photovoltaic (PV) products has continued to drop in recent years. The production enthusiasm of manufacturers was affected, and the market was in depression at once. To realize the expansion of domestic market, China has implemented many incentives since early 2009. This paper reviews the present status and development trend of the Chinese PV industry. It focuses on the turning point problem and draws the conclusions: First, there are still some obstacles to overcome, the key ones are the too low PV product price, industry overcapacity, unbalanced industrial demand and supply, cutbacks in foreign PV market and uncompetitive technologies. Second, the turning point of PV industry in China will come in the future if the problems in PV industry can be solved and the large-scale of the industry can be achieved. Third, the Chinese government is gradually clearing up the obstacles of the development of PV industry, and the turning point is on the way, maybe not later than 2020. At the end of the paper, suggestions are offered as references for the government. [ABSTRACT FROM AUTHOR]

Green roof is an effective energy efficiency measure to reduce the building cooling load in summer and heating load in winter, in addition, it can add ecological benefit and landscape value to the community. Therefore, it has attracted extensive attention worldwide. This paper studies the selection of planting materials, plant configuration patterns and plant growth medium of the green roofs in China, and presents the researches on ecological benefits, thermal performance, and applications of the green roofs in China. This paper also introduces and analyzes the green roofs development policies in China, including the incentive mechanism, laws and regulations, and finally presents the analysis and suggestions on their application prospects. [ABSTRACT FROM AUTHOR]

The main goal of this paper is to argue for the necessity and significance of studying the distributional employment impacts of renewable and new energy development (RNE). Based on the comprehensive review of the methodology and conclusions of existing literatures, this paper builds up an extended input–output model to study RNE’s distributional employment impacts on gender and personnel structure. The case study of China׳s power sector in this paper affirmed earlier doubts that RNE development will indeed aggravate the gender inequality problem and add to the level of mismatch between the structure of labor demand and supply, causing structural unemployment problems. The quantitative analysis in this paper outlined here implies that from 2011 to 2020 the development of RNE will bring about 7 million employment gains, but only 81.8% of which can be realized due to the mismatch problem. The study of China may alert other countries to be less-optimistic about RNE’s employment impacts and reaffirm the need to carry out the distributional employment impacts analysis. This paper concludes with policy suggestions such as providing suitable training and equal promotion opportunities for women, offering courses and vocational trainings to RNE-related majors, in order to reduce the structural unemployment problem and further speed up the development of RNE. [ABSTRACT FROM AUTHOR]

The ongoing transformation of the world's energy system requires detailed power-system models that help plan a cost-effective and reliable integration of variable renewables and demand-side resources. The quality and depth of the results of these models depend on the existence of trustworthy, complete, and high-resolution data on extant electric power assets and the demand they serve, wind and solar resources, and projections on costs and performance of technologies that could be developed during the next three decades. This paper assesses the quality of China's power system's publicly available data compared to the U.S. It concludes that despite growing use of power system models to inform and analyze Chinese energy policy, the availability of necessary data is still a significant barrier that severely limits the transparency, replicability, relevance, and usefulness of their results. • Ongoing energy system transformation requires detailed power-system models. • Usefulness of models' results depends on reliable, complete high-resolution data. • Paper proposes criteria to assess the quality of publicly available data for models. • Publicly available data for China's electric power system is scant and low quality. • Filling data gaps will inform decisions for a sustainable electric power system. [ABSTRACT FROM AUTHOR]

Abstract: Over the past century, fossil fuels have provided the majority of China's energy. However, their extensive utilization leads to a shortage and environmental pollution. Recently, submarine and permafrost gas hydrate deposits have been investigated as a possible clean and sustainable energy source by governmental institutions, research organizations, and energy industries in China. The primary objective of this paper is to review the potential studies pertaining to gas hydrate exploration and resource assessment, the safe and efficient exploitation of gas hydrates and the basic properties of gas hydrates. To date, there are over 20 institutions and organizations in China committed to gas hydrate investigation, among which the Guangzhou Marine Geological Survey (GMGS) and the Chinese Academy of Geological Sciences (CAGS) etc. primarily focus on gas hydrate exploration research, while the China National Offshore Oil Corporation (CNOOC) Research Center, Guangzhou Institute of Energy Conversion (GIEC) and China University of Petroleum-Beijing (CUPB) etc. concentrate on gas hydrate mining technologies. In this paper, the occurrence and exploration of gas hydrates in both permafrost regions and the continental slope of China have been determined from numerous research contributions and are presented. Moreover, the latest progress in gas hydrate fundamental studies, including hydrate phase equilibria, hydrate formation mechanisms, hydrate thermal physical properties and the acoustics and resistivity characteristics of gas hydrates are briefly reviewed, and relevant data are gathered and compared. Emphasis is also placed on gas hydrate mining technologies and gas production using depressurization methods, thermal stimulation methods or other methods. Furthermore, the security of natural gas hydrate-bearing sediments during gas production and the environmental impacts of gas hydrate are identified. With additional financial and political support and advanced research facilities, research on gas hydrates in China is progressing rapidly but is still in its early developing stage, thus, future work should be undertaken with greater diligence. [Copyright &y& Elsevier]

Abstract: A common starting point in assessing greenhouse gas (GHG) reduction policy implications in the built environment is to look at industry specific policies. This paper addressed the glaring gap between national all-economy policy options that actually determine industry-specific programs, and their downstream impacts and implications to the building and construction sector. National carbon policy schemes were organised into two basic types: indirect pricing mechanisms, and direct pricing mechanisms. Their features and comparative strengths and limitations were critically reviewed under a common framework, drawing from a wide body of literature. The status of the application of the GHG reduction policies in China was reviewed. A green building case is studied to quantitatively present the effectiveness and deficiencies of the current GHG mitigation policies in the building sector of China, and their implications to a building's life cycle. Based on China's current status of the policy system, this paper identifies the future direction of building's GHG mitigation policies of China. Policies directly aiming to GHG mitigation in the building sector should be implemented in holistic and comprehensive pathway, to balance the costs and benefits of the stakeholders for the promotion of building GHG mitigation technologies. [Copyright &y& Elsevier]

Abstract: Compared to the Feed-in tariff in China, the Renewable Portfolio Standard (RPS) could not only help to change the driving force of renewable energy industry development, but also provide the renewable energy industry with incentives to achieve the governments' planned goal. This paper first compares the features of RPS of the major industrialized countries. Second the barriers of implementing the Renewable Portfolio Standard in China are analyzed from five aspects. Finally, based on the above analysis, this paper puts forward relative institutional arrangements for the implementation of Renewable Portfolio Standard in China making recommendations for the development of renewable energy industry. [Copyright &y& Elsevier]

Abstract: With the largest population living in countryside, the carbon dioxide (CO2) emission from rural energy consumption is a serious problem in China. The full development and utilization of renewable energy is the key and effective way for solving the CO2 emissions problem. This paper reviews the rural energy consumption level and structure in China. Then, this paper discusses the potential for renewable energy development as well as its CO2 emissions reductions in rural areas. Results show that if full development and utilization of renewable energy is achieved, on the basis of energy data in 2008, China's rural energy consumption and even 2.2 times of that can be supplied by 100% carbon-free energy resources (which do not contain the biomass energy) without considering economic and technical constraints, and 2.4 times of that can be provided by renewable energy. Moreover, to evaluate the application priority, cost-effectiveness of each renewable energy resource is analyzed. Based on the characteristics of renewable energy resources, new promotional strategies to ensure the full development and utilization of renewable energy in rural China are also presented. [Copyright &y& Elsevier]

Abstract: Traditional power load management in China is featured by power rationing without considering user demand. However, since the 1990s, demand side management (DSM) has been introduced by local governments and enterprises in China to improve terminal power efficiency and optimize resources allocation, and certain breakthrough have already been achieved. Demand response aims at improving the energy efficiency of end-users and achieving emission reduction targets. Based on the development status of power industry and electricity market in China, this paper firstly reviews the three key development stages of traditional DSM, including management content, operation mode and results assessment. Secondly, this paper analyzes the demand side management aimed at energy conservation and emissions reduction, selecting the core elements and key processes influencing terminal power efficiency of DSM development. In addition, DSM safeguard system and incentive mechanism, including political, economic, technical and managerial measures, are further discussed to achieve the aim of energy conservation and emission reduction. Finally, this paper systematically analyzes related policies and regulations proposed by the government, and put forward relative policy recommendations for DSM development in China. [Copyright &y& Elsevier]

Abstract: As an unconventional natural gas with the advantages of great resource potential and low carbon emissions, shale gas has currently aroused a new round of development and utilization worldwide. China’s shale gas resource is enormous and has huge potential for exploitation. However, due to the late start of exploration and development, it has not yet realized industrialization. By using the SWOT analysis method, this paper studies the internal and external development environment of Chinese shale gas, then explores shale gas development status of China from four dimensions including strengths, weaknesses, opportunities and threats. Finally, according to the combinations of SWOT matrix analysis, the paper formulates four kinds of different development strategies to provide certain references to the development of China’s shale gas industry. [Copyright &y& Elsevier]

Abstract: China''s PV industry has developed rapidly in recent years due to the dramatic demand from the world market. In contrast, until 2010 China''s domestic PV market has been very small due to lack of sufficient incentives in the country to promote domestic PV deployment. However, since early 2009 many incentives have been implemented in China. The paper makes an analysis on China''s solar PV incentive policies, particularly the national FIT scheme. Policy recommendations are made with regard to the promotion of the domestic solar PV market, including the construction of an effective national FIT scheme, the imposition of renewable portfolio system as well as the establishment of sound technical and administration standards for the grid-connection of PV systems. The paper contributes to the academic literature over China''s solar PV power policy. [Copyright &y& Elsevier]

Abstract: China’s emergence as a major force in clean energy development has profound implications for the world. A lack of understanding around the trajectory of China’s surge in clean energy investment, and the seriousness of its impact on global clean energy development, demands a clear review of China’s clean energy innovation. To this purpose, the paper analyzes the technology innovation process and major players for technology innovation in a general sense. It then decodes the Chinese way of innovation, which reflects unique historical circumstances and development stage. The paper also explores the clean energy innovation with Chinese characteristics as well as analyzes lessons from China in clean energy innovation. The paper concludes that China has become a global learning laboratory of clean energy technology. China’s leadership in commercializing clean energy technology could ultimately help lower its costs and promote its commercialization globally. Nevertheless, China’s clean energy innovation faces an ambiguous future due to the challenge in balancing and coordinating technology import and indigenous innovation. [Copyright &y& Elsevier]

Abstract: This paper analyzed the interactions among China’s economic growth and its energy consumption, air emissions and air environmental protection investment during 2000–2007. Conventional energy and emergy are applied to quantify energy consumption and emissions’ impact, respectively. The five indicators based on money, energy and emergy, including ratio of nonrenewable energy to renewable energy (RNR), energy use per unit GDP (EUPG), environmental cost per unit GDP (ECPG), impact of emissions per unit energy consumption (IEPEC), and environmental benefit per unit environmental protection investment (EBPEI), are presented to depict the relationships among economic growth and energy consumption and impact of air emissions and air environmental protection investment. The results show that energy consumption rapidly rises with China’s fast economic growth; however, energy efficiency and environmental loading intensity from energy consumption are reduced simultaneously but their improvements fall far behind economic growth rate. Impact of air emissions, mainly composed of impact of emissions on human health (especially dust), is slightly decreased. The performance of air environmental protection investment is obviously declined in the study period. Generally speaking, the conflict among economy, energy and air environment protection is slightly mitigated but still acute due to great dependence of China’s economy on fossil energy and inefficient environmental protection measures. Finally, this paper discusses the corresponding issues, and then puts forward some related suggestions. [Copyright &y& Elsevier]

Abstract: This research studies the low carbon transition of the electric power sector in China using a multi-level perspective (MLP) of niches, socio-technical regime, and landscape, as well as literature on innovation systems. Three lines of thought on transition process are integrated in the paper to probe the possible transition pathways in China. A MLP analysis is presented to understand the current niches, regime, and landscape of China’s power sector. A brief analysis on the future macroscopic socio-economic transition in the process of industrialization, urbanization, and modernization of Chinese society and its implication on power landscape are depicted to prove the urgency and magnitude of transition in China and why systematic transition management is needed. Five transition pathways, namely reproduction, transformation, substitution, reconfiguration, de-alignment/re-alignment, and reconfiguration, with their possible technology options are presented. The paper goes further to propose an interactive framework for managing the transition to a low carbon energy system in China. Representative technology options are appraised by employing innovation theory to indicate the logic of policymaking within the framework. Institutional gaps in realizing the transition are also addressed. The work presented in the paper will be useful in informing policy-makers and other stakeholders and may provide references for power sector transition management in other countries. [Copyright &y& Elsevier]

Abstract: This paper presents the typical evaporative cooling air conditioning systems used in China, including all-air central evaporative cooling systems, air–water semi-central evaporative cooling systems and hybrid desiccant dehumidification and evaporative cooling systems. Their environmental impacts and energy saving potential are illustrated, and other factors closely related to the practical application of evaporative cooling, such as water treatment, appropriate design codes and handbooks, and automatic control strategies, are outlined. The paper concludes with a discussion of the prospects for future research and applications of evaporative cooling. [Copyright &y& Elsevier]

Abstract: Since 2005, there has been dramatic progress in China''s wind power industry. The annual growth rate of newly constructed capacity reached a miracle of 105% and the total installed capacity has increased from 1.27GW in 2005 to 44.73GW in 2010, which has exceeded the target of China''s energy long-term planning for 2020. During the 11th Five-Year-Plan (FYP), the Chinese government has issued a series of polices to promote and regulate the development of wind power industry, which is the underlying force driving its rapid development. This paper is a systematical review on the current status and policies of wind power industry in China. Firstly the current status including achievements and shortcomings is presented, and then the relevant polices and regulations released during the period of 11th FYP are reviewed. Meanwhile, the main approaches of the policies and regulations in promoting the development of wind power industry are discussed and the issues of the current policies are analyzed. Finally, the paper concludes on the perspectives of wind power policies in China. [Copyright &y& Elsevier]

Abstract: Solar energy is increasingly essential to fortify energy security and promote Chinese socio-economic development. The applications of solar thermal energy in China are mainly centralized at low and medium temperature, such as solar water heating, solar cooling and air conditioning, building heating, solar drying and solar power generating. Based on the reality in China, it is presented in this paper that China should promote the distributed concentrated solar thermal (DCST) technology, especially in the industrial field. This technology, which has the potential to reduce the high cost of DCST and overcome the intermittent output of solar energy, is discussed in this paper, as well as how to put DCST technology forward and enlarge scale deployment in China. Finally, it is hoped that suggestions in this paper could be helpful to the researchers, designers and policy-makers who are involving in this field. [Copyright &y& Elsevier]

Abstract The Belt and Road Initiative (BRI) forms the core of China's foreign policy and future foreign cooperation, and energy cooperation is an important component of the BRI. Energy security is closely related to the interdependent relations between countries. The present paper investigates energy interdependent relations between China and the countries along the Belt and Road using data collected in the BP Statistical Review of World Energy , between 2000 and 2015. The main results are as follows: (1) Abundant proven reserves of energy resources exist in these countries, which were equivalent to 758.73 billion tons of standard coal in 2015, accounting for 52.27% of the world. The distribution of these resources presents a pattern with two centers—one in Russia, and one in West Asia and the Middle East. (2) Established interdependence relations exist between China and the countries along the Belt and Road in terms of energy cooperation. China has imported 437.21 million tons of standard coal from these countries and their guarantee degree to China's energy security is 58.42%, of which 13.56% refers to coal, 73.37% to oil, and 13.06% to gas. Meanwhile, their dependence degree in energy exports to China was 13.56%, or 11.15% for coal, 14.92% for oil, and 10.55% for gas. An interdependence relation thus exists between China and these countries, and the degree of mutual dependence between them was 0.23 (0.22 for coal, 0.13 for oil, and 0.38 for gas), locating China in a relatively passive position with respect to the countries along the Belt and Road as a whole, but a relatively active position in relation to individual countries (with the exception of Russia). Our findings are useful to the tasks of identifying the spatial distribution pattern of energy in countries along the Belt and Road, assisting in the promotion of energy cooperation between China and these countries, and the future construction of the BRI. Highlights • Energy cooperation relationships between China and the countries along the Belt and Road are examined. • The indicators of guarantee degree, dependence degree, and mutual dependence degree are selected for this study. • Energy resources present a pattern with two centers; one in Russia and one in West Asia and the Middle East. • Countries along the Belt and Road maintained an energy GD of 58.42% for China; their DD on China was 13.56%. • The MDD between China and the countries of the Belt and Road was 0.23, and China's position in the relation was passive. [ABSTRACT FROM AUTHOR]

Abstract Renewable energy, as an important part of the world's energy system, is conducive to the harmonious development of humanity and nature. China has been paying considerable attention to renewable energy given the growing pressure of energy shortages and environmental deterioration. The legal framework of renewable energy in China has greatly contributed to the achievements already made in this field; however, it is still insufficient to integrate renewable energy into the national energy system. This paper, in light of the comparisons of various state practices, critically reviews the problems of China's renewable energy law and policy such as problems with fragmentation, obsolescence, and lack of operability. In addition to identifying the consequent disadvantages, this review also presents improvement recommendations. Highlights • The world is facing serious problems of energy shortage, environmental pollution and climate change. • China has established a relatively complete renewable energy law and policy system to promote renewable energy development. • Smooth development of renewable energy is inseparable from supportive legal framework. • Compared with other states, China's renewable energy laws and policies have some disadvantages to be improved. [ABSTRACT FROM AUTHOR]

Abstract With climate change and the over-exploitation of fossil fuels, the advantages of using bioenergy are becoming increasingly obvious and many countries and regions around the world are committed to building biogas plants to produce clean energy. This article examines Henan Province, which features agricultural production and biogas projects typical of China. The aim was to identify the problems associated with the use of current agricultural waste in biogas production and provide suggestions for future biogas developments via comparisons of the potential of agricultural wastes with biogas project construction. Straw and manure volumes were analyzed by using crop yields and livestock production to calculate the biogas potential and the status quo was reflected through biogas project data. Subsequently, biogas potential and projects were analyzed from quantitative and spatial perspectives and a benefit evaluation was conducted. The results indicate that Henan Province has abundant straw and manure resources with large biogas potential, and that making good use of these wastes would have a good emission reduction effect and economic advantages, but there are presently large differences between the actual production and biogas potential. This paper analyzes the possible causes of this discrepancy, including resource utilization and biogas project operations. Lastly, countermeasures were proposed, such as developing matching technologies, improving relevant policies, and improving ecological-economic benefits to enhance future biogas project development. Graphical abstract fx1 Highlights • We choose Henan Province which is typical of agriculture and biogas industries. • Straw and manure volume are used to calculate biogas potential. • There is a significant difference between biogas potential and actual production. • Resource use and biogas project management issues cause these inconsistencies. • Technology, policy, and ecological-economic countermeasures are proposed. [ABSTRACT FROM AUTHOR]

Abstract: Low carbon electricity is essential for China''s low carbon development. In the paper low carbon electricity is defined as an economy body manages to realize its potential economic growth fueled by less electricity consumption, which can be characterized by indexes of GDP electricity intensity and CO2 emissions per unit electricity generation. IRSP is proposed by Hu to implement power planning on state level in deregulated power sector and is used in the paper to study China''s power planning into 2030. A business-as-usual scenario is projected as baseline for comparison while low carbon electricity development based on IRSP is studied. Results show that, with IRSP, China could save energy by 1.5 billion toes and reduce CO2 emission by 5.7 billion tons, during 2010–2030. Super Smart Grid (SSG) must be constructed as the physical foundation of IRSP. The main components of developing SSG in China are discussed. [Copyright &y& Elsevier]

Abstract: Renewable energy technologies offer an economically viable and environmentally suitable scenario towards addressing energy requirements for rural livelihoods. China''s Renewable Energy Rural Electrification Program, initiated in 2001, is an effort to employ renewable energy technologies on a large-scale for rural electrification. The Program has been designed with several stages. This paper firstly offers an analysis of the problems encountered during the progress of this rural electrification program, using data obtained from field survey of representative areas in western China where the first stage of the program was implemented. The paper then explores feasible solutions in order to address existing rural energy issues and provide long-term reliable energy service for remote communities. In support of future course of development of renewable energy application for rural energy demands, policy recommendations are provided. [Copyright &y& Elsevier]

As a non-Arctic country and a major energy consumer, China is increasingly interested in participating in Arctic energy development. This study aims to investigate potential strategies to promote China's participation in Arctic energy development. Accordingly, this study analyzes the strengths, weaknesses, opportunities, and threats (SWOT) of China's participation in Arctic energy development based on a discussion of the current status of Arctic energy development and the Arctic policies of major countries. In addition, this work develops strategies in accordance with the above analysis. The results show that China has strengths in terms of capital, energy demand, policy support, and international cooperation when participating in Arctic energy development, while its weaknesses include the lack of core technology and equipment, high carbon intensity of energy development, and geographical disadvantage. China faces opportunities stemming from conflicts among Arctic states, the advancement of global carbon neutrality, and the development of Arctic waterway while facing threats such as increased competition, international public opinion pressure, high development costs, environmental risks, and pandemic instability. Under an integrated framework, this work offers four strategies: Strength-Opportunity (SO), Strength-Threat (ST), Weakness-Opportunity (WO), and Weakness-Threat (WT). Finally, this study proposes specific measures in four areas, including strengthening policy support, promoting technical research and development, enhancing international cooperation, and improving enterprise competitiveness. [Display omitted] • This study examines China's participation in Arctic energy development. • This paper reviews the status of fossil and non-fossil energy in the Arctic. • This study compares the Arctic energy development strategies of major countries. • This study proposes four strategies, namely SO, ST, WO, and WT. [ABSTRACT FROM AUTHOR]

In the past decades, solar heat for industrial processes (SHIP) have been rapidly developed and applied, and also getting more and more attention all over the world. China is the largest energy consumer with industry accounting for almost 70% of its total energy consumption. Low- and medium-temperature heat takes up 45% of process heat, covering 50–70% of industrial energy consumption, which provides a favorable condition for solar application in industrial processes. China has built developed some demonstration projects to make industrial processes well integrated with solar heating systems. This paper briefly summarizes the status of China's energy consumption, integration of SHIP, as well as available matching solar technologies. Ten typical industrial sectors are selected to specifically describe their potential of SHIP. Moreover, 26 SHIP cases covering the selected 10 sectors are presented by field researches, with capacity of energy saving and emission reduction previously investigated according to their own proportion of SHIP. The potential of SHIP in the 10 sectors are further predicted by optimistically and conservatively making their proportion in SHIP 5.5% and 2% respectively during the period of 2016–2020. The results show that at least 39.40 million tons of coal equivalent and 98.22 million tons of CO 2 emission is expected to be reduced in 2020 in China's all industrial sectors although solar can meet different proportions of heat demand in different industrial sectors. [ABSTRACT FROM AUTHOR]

This study evaluates the economic impact of achieving China's Intended Nationally Determined Contributions (INDCs) through emissions trading scheme (ETS) and renewable energy policy, using a Computable General Equilibrium (CGE) model. We explored the behavior of different sectors in the carbon market, carbon trade amount, carbon price and the economic impact of an emissions cap and trade on the employment and GDP. The results demonstrate that the electricity and aviation sectors have relatively higher mitigation costs and tend to be the main buyers of the carbon credits, whereas chemicals, nonmetal production, iron and steel, paper and other manufacturing sectors have relatively lower mitigation costs and tend to be the main sellers. Carbon trading price and market scale are closely related to various factors such as the emissions quota allocation scheme among sectors, coverage of participating sectors and the level of renewable energy development. Emission trading is also confirmed to be an economically efficient approach that contributes to the achievement of emission reduction targets with less economic cost. In order to make full use of this approach, policy maker should assign an appropriate emissions quota allocation scheme, extend coverage of various sectors and promote the expansion of low-carbon technologies such as renewable energy. [ABSTRACT FROM AUTHOR]