Abstract
More than 80% of China’s primary energy consumption is provided by fossil fuels. Over the years, and notably since 2003, the government has promulgated a series of policies intended to constrain coal consumption, promote the use of non-fossil fuels, reduce air pollution, and enhance energy efficiency. These measures include improving the efficiency of coal-fired power stations and industrial plants, switching from coal to gas, testing carbon capture and storage or use, and boosting the share of low-carbon energy sources in the power sector. These strategies have met with a high degree of success, due mainly to the rigorous application of administrative policy instruments and subsidies. The country has great potential for the further deployment of wind and solar energy, as well as scope to boost the share of natural gas. The key determinants of the pace at which China reduces its use of fossil fuels in absolute terms are two-fold. First is the rate of economic growth. Coal has long been the swing fuel and an increase in economic growth has always boosted coal consumption. The second key variable is the mix of market and administrative policy instruments deployed. Whilst the continued introduction of market forces into the energy sector may be welcome on purely economic grounds, it is not evident that they will be effective at enhancing efficiency or reducing emissions for as long as the major energy producing and consuming enterprises remain in state hands.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
References
Andrews-Speed, P. 2004. Energy Policy and Regulation in the People’s Republic of China. London: Kluwer Law International.
Andrews-Speed, P. 2012. The Governance of Energy in China: Transition to a Low-Carbon Economy. London: Palgrave Macmillan.
Andrews-Speed, P. 2016. Applying Institutional Theory to the Low Carbon Transition. Energy Research and Social Science 13: 216–225.
Andrews-Speed, P. and Zhang, S. 2015. Renewable Energy Finance in China. In: Donovan, C.W. (Ed.) Renewable Energy Finance. London: Imperial College Press, pp. 175–194.
Anonymous. 2018. The National Energy Administration Answered the Reporter’s Question: After the 531 New Deal, the Five Major Policies and Measures Promote the Healthy Development of the Photovoltaic Industry. https://api.dltoutiao.com/home/html/3/225328?.
Askci Consulting. 2018. China’s CBM Production Data Analysis from January to December 2017: Cumulative Growth of 8.2%. January 24, 2018. http://www.askci.com/news/chanye/20180124/102103116728.shtml# (in Chinese).
Bloomberg News. 2018. Next Up in China’s Clean-Air Push Is a Gas Pipeline Behemoth. Bloomberg News, June 11, 2018. https://www.bloomberg.com/news/articles/2018-06-11/next-up-in-china-s-clean-air-push-is-a-gas-pipeline-behemoth.
BP. 2018. Statistical Review of World Energy. London: BP.
Caldecott, B., Dericks, G., Tulloch, D.J., Liao, X., Kruitwagen, L., Bouveret, G. and Mitchell, J. 2017. Stranded Assets and Thermal Coal in China. An Analysis of Environment-Related Risk Exposure. University of Oxford, Smith School of the Environment, Sustainable Finance Programme, Working Paper.
Davidson, M.R., Kahrl, F. and Karplus, V.J. 2017. Towards a Political Economy Framework for Wind Power: Does China Break the Mould?. In: Arent, D., Arndt, C., Miller, M., Tarp, F. and Zinaman, O. (Eds.) The Political Economy of Clean Energy Transitions. Oxford: Oxford University Press, pp. 250–270.
Dittmer, L. 2017. Xi Jinping’s “New Normal”: Quo Vadis? Journal of Chinese Political Science 22: 429–446.
Dong, X., Pi, G., Ma, Z. and Dong, C. 2017. The Reform of the Natural Gas Industry in the PR of China. Renewable and Sustainable Energy Reviews 73: 582–593.
Economy, E. 2004. The River Runs Black. The Environmental Challenge to China’s Future. Ithaca, NY: Cornell University Press.
Finamore, B. and Szymanski, T.M. 2002. Taming the Dragon’s Head: Controlling Air Emissions from Power Plants in China—An Analysis of China’s Air Pollution Policy and Regulatory Framework. Environmental Law Reporter 32 (11439): 26.
Geall, S. and Ely, A. 2015. Innovation for Sustainability in a Changing China: Exploring Narratives and Pathways. STEPS Working Paper 86, STEPS Centre, Brighton.
Grubb, M, Sha, F., Spencer, T., Hughes, N., Zhang, Z. and Agnalucci, P. 2015. A Review of Chinese CO2 Emission Projections to 2030: The Role of Economic Structure and Policy. Climate Policy 15 (S1): S7–S39.
Grunberg, N. 2017. Revisiting Fragmented Authoritarianism in China’s Central Energy Administration. In: Brodsgaard, K.J. (Ed.) Chinese Politics as Fragmented Authoritarianism. Earthquakes, Energy and Environment. London: Routledge, pp. 15–37.
Howell, J. 2006. Reflections on the Chinese State. Development and Change 37: 273–297.
Hu, B. and Zhai, H. 2017. The Cost of Carbon Capture and Storage for Coal-Fired Plants in China. International Journal of Greenhouse Gas Control 65: 23–31.
Huang, B., Xu, S., Gao, S., Liu, L., Tao, J., Niu, H., Cai, M. and Cheng, J. 2010. Industrial Test and Techno-Economic Analysis of CO2 Capture in Huaneng Beijing Coal-Fired Power Station. Applied Energy 87: 3347–3354.
International Energy Agency. 2016. Ready for CCS Retrofit. The Potential for Equipping China’s Existing Coal Fleet with Carbon Capture and Storage. Paris: OECD/IEA.
International Energy Agency. 2017. World Energy Outlook 2017. Paris: OECD/IEA.
Jing, J.. 1997. Rural Resettlement: Past Lessons for the Three Gorges Dam Project. The China Journal 38: 65–92.
Kambara, T. and Howe, C. 2007. China and the Global Energy Crisis. Development and Prospects for China’s Oil and Natural Gas. Cheltenham: Edward Elgar.
Lema, A. and Ruby, K. 2007. Between Fragmented Authoritarianism and Policy Coordination: Creating a Chinese Market for Wind Energy. Energy Policy 35: 3879–3890.
Leutert, W. 2018. The Political Mobility of China’s Central State-Owned Enterprise Leaders. The China Quarterly 233: 1–21.
Li, C. 2015. China’s Centralized Industrial Order. Industrial Reform and the Rise of Centrally Controlled Big Business. London: Routledge.
Lieberthal, K.G. 1995. Governing China. From Revolution Through Reform. New York: W.W. Norton.
Lieberthal, K.G. and Oksenberg, M. 1988. Policy Making in China. Leaders, Structures and Processes. Princeton: Princeton University Press.
Liu, C. 2018a. Report on Domestic and Foreign Oil and Gas Industry Development in 2017. Beijing: Oil and Gas Press.
Liu, H. 2018b. Carbon Capture and Storage in Decarbonising the Chinese Economy. Global CCS Institute, Insights, June 5, 2018. http://status.globalccsinstitute.com/insights/authors/GlobalCCS%20Institute/2018/06/05/carbon-capture-and-storage-de-carbonising-chinese-economy?author=NDU3MTE4
Ma, C. and Zhao, X. 2015. China’s Electricity Market Restructuring and Technology Mandates: Plant-Level Evidence for Changing Operational Efficiency. Energy Economics 47: 227–237.
Mao, J. 2009. The Status and Development of Supercritical/Ultrasupercritical Units in China. In: 34th International Technical Conference on Coal Utilization & Fuel Systems, 31 May–4 June 2009, Clearwater, Florida.
Matthews, J.A. and Tan, H. 2015. China’s Renewable Energy Revolution. Basingstoke: Palgrave Macmillan.
Myllyvyrta, L. and Shen, X. 2016. Burning Money. How China Could Squander Over One Trillion Yuan on Unneeded Coal-Fired Capacity. Beijing: Greenpeace.
Na, C., Yuan, J., Xu, Y. and Hu, Z. 2015. Penetration of Clean Coal technology and Its Impact on China’s Power Industry. Energy Strategy Reviews 7: 1–8.
National Bureau of Statistics. 2017. China Statistical Yearbook 2017. Beijing: National Bureau of Statistics.
National Bureau of Statistics. 2018. Statistical Communique on National Economic and Social Development 2017, February 28, 2018. http://www.stats.gov.cn/tjsj/zxfb/201802/t20180228_1585631.html (in Chinese).
National Development and Reform Commission. 2018. Draft Measures for Fair and Open Supervision of Oil and Gas Pipeline Network Facilities, August 3, 2018. http://www.ndrc.gov.cn/zwfwzx/tztg/201808/t20180803_895250.html (in Chinese).
National Energy Administration. 2018a. New Installed Capacity of Solar PV Reached 53.05 GW, Taking the Lead in All Renewable Energy Sources. January 24, 2018. http://www.nea.gov.cn/2018-01/24/c_136920159.htm (in Chinese).
National Energy Administration. 2018b. The Situation of Grid-Connection of Wind Power in 2017. February 1, 2018. http://www.nea.gov.cn/2018-02/01/c_136942234.htm (in Chinese).
North, D.C., Wallis, J.J. and Weingast, B.R. 2009. Violence and Social Orders. Cambridge: Cambridge University Press.
Nyman, J. and Zeng, J. 2006. Securitization in Chinese Climate and Energy Politics. WIRES Climate Change 7: 301–312.
Pan, J., Peng, W., Li, M., Wu, X., Wan, L., Zerriffi, H., Elias, B., Chi, Z. and Victor, D. 2006. Rural Electrification in China 1950–2004. Historical Forces and Key Driving Processes. Program on Energy and Sustainable Development, Working Paper No. 60, Stanford University.
Qin, Y., Tong, F., Yang, G. and Mauzerall, D. 2018. Challenges of Using Natural Gas as a Carbon Mitigation Option in China. Energy Policy 117: 457–462.
REN 21. 2017. Renewables 2017. Global Status Report. Paris: REN21
Rutkowski, R. 2013. The Economics of Nuclear Power in China. China Economic Watch, Petersen Institute for International Economics. https://piie.com/blogs/china-economic-watch/economics-nuclear-power-china.
Sandalow, D., Akos, L. and Sheng, Y. 2018. A Natural Gas Giant Awakens: China’s Quest for Blue Skies Shapes Global Markets. China Natural Gas Commentary, Columbia SIPA, Center on Global Energy Policy.
Senior, B., Wenying, C., Gibbins, J., Haydock, H., Li, M., Pearce, J., Su, W. and Ulanowsky, D. 2011. Carbon Capture and Storage in China—Main Findings from China-UK Near Zero Emissions Coal (NZEC) Initiative. Energy Procedia 4: 5956–5965.
Shapiro, J. 2001. Mao’s War Against Nature: Politics and the Environment in Revolutionary China. Cambridge: Cambridge University Press.
Shearer, C., Mathew-Shah, N., Myllyvyrta, L., Yu, A. and Nace, T. 2018. Boom and Bust 2018. Tracking the Global Coal Plant Pipeline. Coalswarm/Sierra Club/Greenpeace.
Shi, X. and Varium, H.M.P. 2015. China’s Gas Market Liberalisation. The Impact on China-Australia Gas Trade. In: Song, L., Garnaut, R., Fang, C. and Johnston, L. (Eds.) China’s Domestic Transformation in a Global Context. Acton: ANU Press, pp. 137–174.
Sovacool, B.K. and Valentine, S.V. 2012. The National Politics of Nuclear Power. London: Routledge.
Sun, Y. 2017. China’s Emissions Trading Report. Beijing: Social Science Academic Press (in Chinese).
Sun, H., Li, S. and Li, P. 2017. Disorderly Solar PV Operation and Maintenance Market: How Would the 10 Billion Solar PV Operation and Maintenance Market Grow. China Energy 2017 (11): 43–48 (in Chinese).
US Energy Information Administration. 2018. International Energy Statistics. https://www.eia.gov/.
Vermeer, E.B. 2012. Hydropower in China: Development or Slowdown. International Institute for Asian Studies, Leiden, Newsletter 62 (Winter 2012): 36.
Viebahn, P., Vallentin, D. and Holler, S. 2015. Prospects of Carbon Capture and Storage (CCS) in China’s Power Sector—An Integrated Assessment. Applied Energy 157: 229–244.
Williamson, O.E. 2000. The New Institutional Economics: Taking Stock and Looking Ahead. Journal of Economic Literature 37: 595–613.
World Nuclear Association. 2018. Nuclear Power in China. London: World Nuclear Association.
Xu, Y-C. 2002. Powering China. Reforming the Electrical Power Sector in China. Aldershot: Ashgate.
Xu, Y-C. 2010. The Politics of Nuclear Energy in China. Basingstoke: Palgrave Macmillan.
Xu, Y-C. 2014. The Struggle for Safe Nuclear Expansion in China. Energy Policy 73: 21–20.
Yang, H., Wang, H., Yu, H., Xi, J., Cui, R. and Chen, G. 2003. Status of Photovoltaic Industry in China. Energy Policy 31: 703–707.
Yeager, B. 2016. Pushing the Ultra Envelope: Advanced Power Technologies are Mainstream in China. Power Magazine, January 11, 2016. http://www.powermag.com/pushing-ultra-envelope-advanced-power-technologies-mainstream-china/
Yeh, E.T. and Lewis, J.I. 2004. State Power and the Logic of Reform in China’s Electricity Sector. Pacific Affairs 77: 437–465.
Yin, S., Zhang, S., Andrews-Speed, P. and Li, W. 2017. Economic and Environmental Effects of Peak Regulation Using Coal-Fired Power for the Priority Dispatch of Wind Power in China. Journal of Cleaner Production 162: 361–370.
Yuan, J., Na, C. and Yang, M. 2016a. Energy Efficiency and Conservation in China’s Power Sector: Progress and Prospects. In: Bin, S. and Thomson, E. (Eds.) China’s Energy Efficiency and Conservation. Sectoral Analysis. Singapore: Springer, pp. 5–21.
Yuan, J., Li, P., Wang, Y., Liu, Q., Shen, X., Zhang, K. and Dong, L. 2016b. Coal Power Overcapacity and Investment Bubble in China During 2015–2020. Energy Policy 97: 136–144.
Zhang, Z. 2011. Energy and Environmental Policy in China. Towards a Low-Carbon Economy: Cheltenham: Edward Elgar.
Zhang, S. and Qin, X. 2016. Promoting Large and Closing Small in China’s Coal Power Sector 2006–2013: A CO2 Mitigation Assessment Based on a Vintage Structure. Economics of Energy & Environmental Policy 5 (2): 85–99.
Zhang, S., Zhao, X., Andrews-Speed, P. and He, X. 2013. The Development Trajectories of Wind Power and Solar PV Power in China: A Comparison and Policy Recommendations. Renewable and Sustainable Energy Reviews 26: 322–331.
Zhang, S., Andrews-Speed, P. and Perera, P. 2015. The Evolving Policy Regime for Pumped Storage Hydroelectricity in China: A Key Support for Low-Carbon Energy. Applied Energy 150: 15–24.
Zhao, X., Li, S., Zhang, S., Yang, R. and Liu, S. 2016. The Effectiveness of China’s Wind Power Policy: An Empirical Analysis. Energy Policy 95: 269–279.
Zheng, Y. 2010. The Chinese Communist Party as Organizational Emperor. Culture, Reproduction and Transformation. London: Routledge.
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2020 The Author(s)
About this chapter
Cite this chapter
Andrews-Speed, P. (2020). China’s Efforts to Constrain its Fossil Fuel Consumption. In: Wood, G., Baker, K. (eds) The Palgrave Handbook of Managing Fossil Fuels and Energy Transitions. Palgrave Macmillan, Cham. https://doi.org/10.1007/978-3-030-28076-5_5
Download citation
DOI: https://doi.org/10.1007/978-3-030-28076-5_5
Published:
Publisher Name: Palgrave Macmillan, Cham
Print ISBN: 978-3-030-28075-8
Online ISBN: 978-3-030-28076-5
eBook Packages: EnergyEnergy (R0)