NDLI: The effect of energy end-use efficiency improvement on China’s energy use and CO$_{2}$ emissions: a CGE model-based analysis

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The effect of energy end-use efficiency improvement on China’s energy use and CO$_{2}$ emissions: a CGE model-based analysis

Content Provider	Springer Nature Link
Author	Liang, Qiao Mei Fan, Ying Wei, Yi Ming
Copyright Year	2009
Abstract	With its rapid economic growth, China is now confronted with soaring pressure from both its energy supply and the environment. To deal with this conflict, energy end-use efficiency improvement is now promoted by the government as an emphasis for future energy saving. This study explores the general equilibrium effect of energy end-use efficiency improvement on China’s economy, energy use, and CO$_{2}$ emissions. This paper develops a static, multisector computable general equilibrium model (CGE) for China, with specific detail in energy use and with the embodiment of energy efficiency. In order to explore the ability of subsidizing non-fossil-generated electricity on moderating potential rebound effects, in this model, the electricity sector was deconstructed into five specific generation activities using bottom–up data from the Chinese electricity industry. The model is calibrated into a 16-sector Chinese Social Accounting Matrix for the year 2002. In the analysis, seven scenarios were established: business as usual, solely efficiency improvement, and five policy scenarios (taxing carbon, subsidized hydropower, subsidized nuclear power, combination of taxing carbon and subsidized hydropower, combination of taxing carbon and subsidized nuclear power). Results show that a sectoral-uniform improvement of energy end-use efficiency will increase rather than decrease the total energy consumption and CO$_{2}$ emissions. The sensitivity analysis of sectoral efficiency improvement shows that efficiency improvements happened in different sectors may have obvious different extents of rebound. The three sectors, whose efficient improvements do not drive-up total national energy use and CO$_{2}$ emissions, include Iron and Steel, Building Materials, and Construction. Thus, the improvement of energy end-use efficiency should be sectoral specific. When differentiating the sectoral energy-saving goal, not only the saving potential of each sector but also its potential to ease the total rebound should be taken into account. Moreover, since the potential efficiency improvement for a sector over a certain period will be limited, technology measures should work along with a specific policy to neutralize the rebound effect. Results of policy analysis show that one relatively enhanced way is to combine carbon taxing with subsidized hydropower.
Starting Page	243
Ending Page	262
Page Count	20
File Format	PDF
ISSN	1570646X
Journal	Energy Efficiency
Volume Number	2
Issue Number	3
e-ISSN	15706478
Language	English
Publisher	Springer Netherlands
Publisher Date	2009-02-14
Publisher Place	Dordrecht
Access Restriction	One Nation One Subscription (ONOS)
Subject Keyword	Energy efficiency General equilibrium Rebound effect Renewable and Green Energy Energy Economics Environmental Economics Environment
Content Type	Text
Resource Type	Article
Subject	Energy

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