Energy Systems

Jing Cao, Mun S. Ho, and Huifang Liang. 2016. “Household energy demand in urban China: Accounting for regional prices and rapid economic change.” The Energy Journal, 37. Publisher's VersionAbstract

Understanding the rapidly rising demand for energy in China is essential to efforts to reduce the country's energy use and environmental damage. In response to rising incomes and changing prices and demographics, household use of various fuels, electricity and gasoline has changed dramatically in China. In this paper, we estimate both income and price elasticities for various energy types using Chinese urban household micro-data collected by National bureau of Statistics, by applying a two-stage budgeting AIDS model. We find that total energy is price and income inelastic for all income groups after accounting for demographic and regional effects. Our estimated electricity price elasticity ranges from - 0.49 to -0.57, gas price elasticity ranges from -0.46 to -0.94, and gasoline price elasticity ranges from -0.85 to -0.94. Income elasticity for various energy types range from 0.57 to 0.94. Demand for coal is most price and income elastic among the poor, whereas gasoline demand is elastic for the rich.

Potential for wind generated electricity in China
Michael B. McElroy, Xi Lu, Chris P Nielsen, and Yuxuan Wang. 2009. “Potential for wind generated electricity in China.” Science, 325, 5946, Pp. 1378-1380. Publisher's VersionAbstract
Wind offers an important alternative to coal as a source of energy for generation of electricity in China with the potential for substantial savings in carbon dioxide emissions. Wind fields derived from assimilated meteorological data are used to assess the potential for wind-generated electricity in China subject to the existing government-approved bidding process for new wind farms. Assuming a guaranteed price of 0.516 RMB (7.6 U.S. cents) per kilowatt-hour for delivery of electricity to the grid over an agreed initial average period of 10 years, it is concluded that wind could accommodate all of the demand for electricity projected for 2030, about twice current consumption. Electricity available at a concession price as low as 0.4 RMB per kilowatt-hour would be sufficient to displace 23% of electricity generated from coal.

Final Manuscript in DASH
This paper was the cover article of this issue of Science; click here (http://www.sciencemag.org/content/325/5946.cover-expansion) to see the cover image of wind turbines near the Great Wall of China.

1998. Energizing China: Reconciling Environmental Protection and Economic Growth. Cambridge, MA: HUCE/Harvard University Press. Publisher's VersionAbstract

As China develops its booming, fossil fuel-powered economy, is it taking lessons from the history of Western industrialization and the unforeseen environmental harms that accompanied it? Given the risks of climate change, is there an imperative, shared responsibility to help China respond to the environmental effects of its coal dependence? By linking global hazards to local air pollution concerns—from indoor stove smoke to burgeoning ground-level ozone—this volume of eighteen studies seeks integrated strategies to address simultaneously a range of harmful emissions. Counterbalancing the scientific inquiry are key chapters on China’s unique legal, institutional, political, and cultural factors in effective pollution control.

Energizing China, the stage-setting publication of an ongoing program of Harvard–China research collaboration, is distinguished by its conceptual breadth and spirit of exchange. Its contributors include twenty-two Western and seventeen Chinese scholars with a disciplinary reach that includes science, public health, engineering, economics, public policy, law, business, and China studies.

Xi Lu, Michael B. McElroy, and Nora Sluzas. 2011. “Costs for integrating wind into the future ERCOT system with related costs for savings in CO2 emissions.” Environmental Science and Technology, 45, 7, Pp. 3160-3166. Publisher's VersionAbstract
Wind power can make an important contribution to the goal of reducing emissions of CO2. The major problem relates to the intrinsic variability of the source and the difficulty of reconciling the supply of electricity with demand particularly at high levels of wind penetration. This challenge is explored for the case of the ERCOT system in Texas. Demand for electricity in Texas is projected to increase by approximately 60% by 2030. Considering hourly load data reported for 2006, assuming that the pattern of demand in 2030 should be similar to 2006, and adopting as a business as usual (BAU) reference an assumption that the anticipated additional electricity should be supplied by a combination of coal and gas with prices, discounted to 2007 dollars of $2 and $6 per MMBTU respectively, we conclude that the bus-bar price for electricity would increase by about 1.1¢/kWh at a wind penetration level of 30%, by about 3.4 ¢/kWh at a penetration level of 80%. Corresponding costs for reductions in CO2 range from $20/ton to $60/ton. A number of possibilities are discussed that could contribute to a reduction in these costs including the impact of an expanded future fleet of electrically driven vehicles.

Final Manuscript in DASH
This is from a series of papers investigating and comparing the prospects for low- and non-carbon power generation in China and the U.S.

Ying Zhou, Jonathan I Levy, James K Hammitt, and John S Evans. 2007. “Population exposure to pollutants from the electric power sector using CALPUFF.” In Clearing the air: The health and economic damages of air pollution in China, edited by Mun S Ho and Chris P Nielsen. Cambridge, MA: MIT Press. Publisher's VersionAbstract

An interdisciplinary, quantitative assessment of the health and economic costs of air pollution in China, and of market-based policies to build environmental protection into economic development.

China's historic economic expansion is driven by fossil fuels, which increase its emissions of both local air pollutants and greenhouse gases dramatically. Clearing the Air is an innovative, quantitative examination of the national damage caused by China's degraded air quality, conducted in a pathbreaking, interdisciplinary U.S.-China collaboration. Its damage estimates are allocated by sector, making it possible for the first time to judge whether, for instance, power generation, transportation, or an unexpected source such as cement production causes the greatest environmental harm. Such objective analyses can reset policy priorities.

Clearing the Air uses this information to show how appropriate "green" taxes might not only reduce emissions and health damages but even enhance China's economic growth. It also shows to what extent these same policies could limit greenhouse gases, suggesting that wealthier nations have a responsibility to help China build environmental protection into its growth.

Clearing the Air is written for diverse readers, providing a bridge from underlying research to policy implications, with easily accessible overviews of issues and summaries of the findings for nonspecialists and policymakers followed by more specialized, interlinked studies of primary interest to scholars. Taken together, these analyses offer a uniquely integrated assessment that supports the book's economic and policy recommendations.

Chris P Nielsen and Mun S Ho. 2013. “Atmospheric Environment in China: Introduction and Research Review.” In Clearer Skies Over China: Reconciling Air Quality, Climate, and Economic Goals, Pp. 3-58. Cambridge, MA: MIT Press. Publisher's VersionAbstract

A groundbreaking U.S.–Chinese inquiry into the effects of recent air pollution controls and prospective carbon taxes on China's economy and environment.

China's carbon dioxide emissions now outstrip those of other countries and its domestic air quality is severely degraded, especially in urban areas. Its sheer size and its growing, fossil-fuel-powered economy mean that China's economic and environmental policy choices will have an outsized effect on the global environmental future. Over the last decade, China has pursued policies that target both fossil fuel use and atmospheric emissions, but these efforts have been substantially overwhelmed by the country's increasing energy demands. With a billion citizens still living on less than $4,000 per year, China's energy and environmental policies must be reconciled with the goals of maintaining economic growth and raising living standards.

This book, a U.S.–Chinese collaboration of experts from Harvard and Tsinghua University, offers a groundbreaking integrated analysis of China's economy, emissions, air quality, public health, and agriculture. It first offers essential scientific context and accessible summaries of the book's policy findings; it then provides the underlying scientific and economic research. These studies suggest that China's recent sulfur controls achieved enormous environmental health benefits at unexpectedly low costs. They also indicate that judicious implementation of carbon taxes could reduce not only China's carbon emissions but also its air pollution more comprehensively than current single-pollutant policies, all at little cost to economic growth.

Xi Lu, Michael B. McElroy, Chris P Nielsen, Xinyu Chen, and Junling Huang. 2013. “Optimal integration of offshore wind power for a steadier, environmentally friendlier, supply of electricity in China.” Energy Policy, 62, Pp. 131–138. Publisher's VersionAbstract

Demand for electricity in China is concentrated to a significant extent in its coastal provinces. Opportunities for production of electricity by on-shore wind facilities are greatest, however, in the north and west of the country. Using high resolution wind data derived from the GEOS-5 assimilation, this study shows that investments in off-shore wind facilities in these spatially separated regions (Bohai-Bay or BHB, Yangtze-River Delta or YRD, Pearl-River Delta or PRD) could make an important contribution to overall regional demand for electricity in coastal China. An optimization analysis indicates that hour-to-hour variability of outputs from a combined system can be minimized by investing 24% of the power capacity in BHB, 30% in YRD and 47% in PRD. The analysis suggests that about 28% of the overall off-shore wind potential could be deployed as base load power replacing coal-fired system with benefits not only in terms of reductions in CO2 emissions but also in terms of improvements in regional air quality. The interconnection of off-shore wind resources contemplated here could be facilitated by China's 12th-five-year plan to strengthen inter-connections between regional electric-power grids.

Yuan Hu. 2007. “Implementation of voluntary agreements for energy efficiency in China.” Energy Policy, 35, 11, Pp. 5541-5548. Publisher's VersionAbstract
Low-energy efficiency and environmental pollution have long been taken as key problems of Chinese industry, although a number of command-and-control and economic instruments have been adopted in the last few decades. In this paper, policy and legislation development for voluntary agreements were summarized. The voluntary agreements pilot project in two iron and steel companies in Shandong Province as well as other cases were analyzed. In order to identify the existing problems in Chinese cases, comparison was made between China and industrialized countries in the practices of energy efficiency voluntary agreements. Based on the analysis, detained recommendations, including the use of supporting policies for voluntary agreements, were raised. It is expected that voluntary agreements could play a more important role in energy efficiency improvement of Chinese industry.
F. E. S. Murray, F. Reinhardt, and R. Vietor. 1998. “Foreign firms in the Chinese power sector: economic and environmental impacts.” In Energizing China: Reconciling Environmental Protection and Economic Growth, edited by M.B. McElroy, C.P. Nielsen, P. Lydon, and eds.. Cambridge, MA: HUCE/Harvard University Press. Publisher's VersionAbstract

As China develops its booming, fossil fuel-powered economy, is it taking lessons from the history of Western industrialization and the unforeseen environmental harms that accompanied it? Given the risks of climate change, is there an imperative, shared responsibility to help China respond to the environmental effects of its coal dependence? By linking global hazards to local air pollution concerns—from indoor stove smoke to burgeoning ground-level ozone—this volume of eighteen studies seeks integrated strategies to address simultaneously a range of harmful emissions. Counterbalancing the scientific inquiry are key chapters on China’s unique legal, institutional, political, and cultural factors in effective pollution control.

Energizing China, the stage-setting publication of an ongoing program of Harvard–China research collaboration, is distinguished by its conceptual breadth and spirit of exchange. Its contributors include twenty-two Western and seventeen Chinese scholars with a disciplinary reach that includes science, public health, engineering, economics, public policy, law, business, and China studies.

Yanxia Zhang, Haikun Wang, Sai Liang, Ming Xu, Qiang Zhang, Hongyan Zhao, and Jun Bi. 2015. “A dual strategy for controlling energy consumption and air pollution in China's metropolis of Beijing.” Energy, 81, 1 March, Pp. 294-303. Publisher's VersionAbstract

It is critical to alleviate problems of energy and air pollutant emissions in a metropolis because these areas serve as economic engines and have large and dense populations. Drivers of fossil fuel use and air pollutants emissions were analyzed in the metropolis of Beijing during 1997-2010. The analyses were conducted from both a bottom-up and a top-down perspective based on the sectoral inventories and structural decomposition analysis (SDA). From a bottom-up perspective, the key energy-intensive industrial sectors directly caused the variations in Beijing's air pollution by means of a series of energy and economic policies. From a top-down perspective, variations in production structures caused increases in most materials during 2000-2010, but there were decreases in PM10 and PM2.5 emissions during 2005-2010. Population growth was found to be the largest driver of energy consumption and air pollutant emissions during 1997-2010. This finding suggests that avoiding rapid population growth in Beijing could simultaneously control energy consumption and air pollutant emissions. Mitigation policies should consider not only the key industrial sectors but also socioeconomic drivers to co-reduce energy consumption and air pollution in China's metropolis.

Michael B. McElroy. 2011. Energy: Perspectives, Problems and Prospects (Chinese Language Edition). Beijing: Science Press. Publisher's VersionAbstract
The book offers a comprehensive account of how the world evolved to its present state in which humans now exercise a powerful, in many cases dominant, influence for global environmental change. It outlines the history that led to this position of dominance, in particular the role played by our increasing reliance on fossil sources of energy, on coal, oil and natural gas, and the problems that we are now forced to confront as a result of this history. The concentration of carbon dioxide in the atmosphere is greater now than at any time over at least the past 650,000 years with prospects to increase over the next few decades to levels not seen since dinosaurs roamed the Earth 65 million years ago. Comparable changes are evident also for methane and nitrous oxide and for a variety of other constituents of the atmosphere including species such as the ozone depleting chlorofluorocarbons for which there are no natural analogues.

Increases in the concentrations of so-called greenhouse gases in the atmosphere are responsible for important changes in global and regional climate with consequences for the future of global society which, though difficult to predict in detail, are potentially catastrophic for a world poorly equipped to cope. Changes of climate in the past were repetitively responsible for the demise of important civilizations. These changes, however, were generally natural in origin in contrast to the changes now underway for which humans are directly responsible. The challenge is to transition to a new energy economy in which fossil fuels will play a much smaller role. We need as a matter of urgency to cut back on emissions of climate altering gases such as carbon dioxide while at the same time reducing our dependence on unreliable, potentially disruptive, though currently indispensable, sources of energy such as oil, the lifeblood of the global transportation system. The book concludes with a discussion of options for a more sustainable energy future, highlighting the potential for contributions from wind, sun, biomass, geothermal and nuclear, supplanting currently unsustainable reliance on coal, oil and natural gas.
Sue J. Lin, I.J. Lu, and Charles Lewis. 2006. “Identifying key factors and strategies for reducing industrial CO2 emissions from a non-Kyoto protocol member’s (Taiwan) perspective.” Energy Policy, 34, Pp. 1499-1507. Publisher's VersionAbstract
In this study we use Divisia index approach to identify key factors affecting CO2 emission changes of industrial sectors in Taiwan. The changes of CO2 emission are decomposed into emission coefficient, energy intensity, industrial structure and economic growth. Furthermore, comparisons with USA, Japan, Germany, the Netherlands and South Korea are made to have a better understanding of emission tendency in these countries and to help formulate our CO2 reduction strategies for responding to the international calls for CO2 cuts. The results show that economic growth and high energy intensity were two key factors for the rapid increase of industrial CO2 emission in Taiwan, while adjustment of industrial structure was the main component for the decrease. Although economic development is important, Taiwan must keep pace with the international trends for CO2 reduction. Among the most important strategies are continuous efforts to improve energy intensity, fuel mix toward lower carbon, setting targets for industrial CO2 cuts, and advancing green technology through technology transfer. Also, the clean development mechanism (CDM) is expected to play an important role in the future.
Chris P Nielsen, Mun S Ho, Jing Cao, Yu Lei, Yuxuan Wang, and Yu Zhao. 2013. “Summary: Carbon Taxes for 2013-2020.” In Clearer Skies Over China: Reconciling Air Quality, Climate, and Economic Goals, Pp. 103-157. Cambridge, MA: MIT Press. Publisher's VersionAbstract

A groundbreaking U.S.–Chinese inquiry into the effects of recent air pollution controls and prospective carbon taxes on China's economy and environment.

China's carbon dioxide emissions now outstrip those of other countries and its domestic air quality is severely degraded, especially in urban areas. Its sheer size and its growing, fossil-fuel-powered economy mean that China's economic and environmental policy choices will have an outsized effect on the global environmental future. Over the last decade, China has pursued policies that target both fossil fuel use and atmospheric emissions, but these efforts have been substantially overwhelmed by the country's increasing energy demands. With a billion citizens still living on less than $4,000 per year, China's energy and environmental policies must be reconciled with the goals of maintaining economic growth and raising living standards.

This book, a U.S.–Chinese collaboration of experts from Harvard and Tsinghua University, offers a groundbreaking integrated analysis of China's economy, emissions, air quality, public health, and agriculture. It first offers essential scientific context and accessible summaries of the book's policy findings; it then provides the underlying scientific and economic research. These studies suggest that China's recent sulfur controls achieved enormous environmental health benefits at unexpectedly low costs. They also indicate that judicious implementation of carbon taxes could reduce not only China's carbon emissions but also its air pollution more comprehensively than current single-pollutant policies, all at little cost to economic growth.

Tao Song, Jianming Cai, Teresa Chahine, and Yu Deng. 2013. “Urban metabolism model based on the emergy theory: A case study of 31 Chinese cities.” Food, Agriculture and Environment, 11, 3&4, Pp. 2353-2361. Publisher's VersionAbstract

Urban systems, with the overall fluxes of energy, water, material, and wastes, can be modeled with a range of metabolic processes. To quantify the urban metabolism, we use the “emergy” assessment method (all materials and energy are transformed to solar energy equivalents) and then present a group of urban metabolic indicators, which quantify urban metabolic balance, capacity, and outputs to assess a city’s metabolic efficiencies. In this paper, we use 31 Chinese cities as a sample to illustrate how the model can be operated to evaluate the urban metabolism by emergy analysis. Our results indicate that metropolises and coastal cities were more metabolically efficient with higher metabolic balance, capacities, and outputs; but with more external dependency on imported resources. Central and western cities had lower metabolic efficiencies, with a high ratio of non-renewable emergy reliance. Policy implications highlight the need for renewable energy sources and improved management of imported services, goods, and fuels to achieve higher urban resilience and sustainability.

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