Clean energy consumption and economic growth nexus: asymmetric time and frequency domain causality testing in China

ABSTRACT

This article examines the symmetric and asymmetric causal relationships between clean energy consumption and economic growth in time and frequency domains for China. The results of both symmetric and asymmetric causality analysis suggest that clean energy consumption does not cause economic growth. This implies that the level of clean energy consumption in China seems to be optimal and beyond this level, it does not affect the growth level of the country. However, examination of the causality linkage from economic growth to clean energy consumption indicates medium and long-run evidence of a frequency-based symmetric causal relationship. Our asymmetric analysis makes this relation clearer such that only the adverse shocks to economic growth lead to a decline in the clean energy consumption level. This inference is complemented with the estimated causal parameter of 0.13, indicating that a 1% decrease in economic growth results in a 0.13% reduction in the level of clean energy consumption.     

清洁能源发展与中国的能源战略——“首届中美清洁能源务实合作论坛”综述

该文是2009年10月在北京召开的"首届中美清洁能源务实合作论坛"的综述。文章提出中美两国清洁能源合作的基本框架,对两国未来在此领域的合作前景进行了展望,分析了一些地区在此方面的成功经验,对中国清洁能源战略布局提出了相关建议。     

Strategic trends for future energy policy: Evidence from China

In addition to taking advantage of clean technologies for energy from fossil fuels, China’s current policy is to focus on renewable energy especially hydropower and wind. However, this policy is not practical due to climatic problems for installing wind turbines and solar collectors in some Chinese provinces. In this study, China’s regional policy is examined in terms of renewable energy sources and solutions are provided. Based on the data available in the literature, it was found that the hydropower systems account for a significant share of energy required in China, except for Henan. Inner Mongolia was also introduced as the most important Chinese province for developing wind energy systems because over 30% of wind power capacity of China belongs to this province.     

中美清洁能源务实合作的基础与方向

本文阐述了中美两国是在怎样的大背景下提出各自的清洁能源战略构想的,在实施清洁能源战略过程中各自的利益交汇之点和务实合作切入点。指出从中国和平崛起发展道路和21世纪中美关系之新定位等方面看,加强中美两国清洁能源务实合作有其重要的意义。     

Clean technology R&D and innovation in emerging countries—Experience from China

This paper touches upon two key issues related to clean technology deployment in emerging countries: what is the life cycle of R&D and innovation? And where does the R&D funding come from? The paper holds that the innovation climate, system and process in emerging countries do not follow the same trajectory as those in developed countries. Crafting an innovation model that is adapted to the needs and conditions of emerging countries thus is critical. Through revealing the four phases of an innovation life cycle in emerging countries, the paper highlights the dominant role of the public sector in clean technology R&D.     

我国节能减排与清洁发展机制研究

节能减排要求减少能源浪费和降低污染物排放,这是我国“十一五”期间一项基本国策。实现节能减排目标面临较大的资金和技术压力,因此,本文简要介绍了国内节能减排总体形势和清洁发展机制进展现状,多角度论述了清洁发展机制对节能减排的促进作用以及河北省工业领域节能减排重点与温室气体减排潜力,并提出了推进清洁发展机制、促进节能减排对策建议。     

The impacts of energy prices on energy intensity: Evidence from China

In this paper, we present a review of the deregulation of energy prices in China between 1985 and 2004 and assess the impacts of changes in energy prices on aggregate energy intensity and coal/oil/electricity intensity. We used time series data to provide estimates of energy price elasticities. Empirical results showed that: (1) The own-price elasticities of coal, oil, and aggregate energy were negative in periods both before and after 1995, implying that higher relative prices of different energy types lead to the decrease in coal, oil, and aggregate energy intensities. However, the positive own-price elasticity of electricity after 1995 probably indicates that the price effect was weaker than other factors such as income effect and population effect. (2) The impacts of energy prices were asymmetric over time. (3) Sectoral adjustment also drove the decrease in aggregate energy intensity. Although raising energy prices to boost efficiency of energy use seems to be an effective policy tool, other policy implications concerned with energy prices, such as energy supply security and fuel poverty, must also be considered.     

The evolving role of carbon finance in promoting renewable energy development in China

The world is negotiating what the international climate change regime will look like after 2012—the year that current Kyoto Protocol greenhouse gas emissions reduction targets expire—and the future of the Clean Development Mechanism (CDM) is under discussion. Critics claim the scale of reductions that the CDM is driving in the developing world is insufficient from a scientific perspective if we are to avoid dangerous climate change, that the project-by-project crediting process is inefficient, and that the reductions being achieved are not “additional”—meaning they would have happened anyway and thus should not be financially supported. Yet, the efficacy of CDM must be examined in the broader context of carbon mitigation in the developing world and the actions that are taking place. This paper examines the role that the CDM has played in promoting renewable energy development in China in order to assess how international carbon finance can best be used to help promote emissions mitigation in the developing world. It also assesses how several options under consideration for reforming the current structure of the CDM in particular and developing country engagement in general may impact renewable energy development in China in the coming years.     

Regional model of EKC for air pollution: Evidence from the Republic of Korea

This study aims to investigate a relationship between economic development and air pollution at the regional level, and further suggest energy policies for climate change mitigation. The present study examines an Environmental Kuznets Curve (EKC) hypothesis analyzing annual panel data of 16 metropolitan regions in Korea over a 16-year time period. The analysis results show that there is no one-dominant shape of EKC for SO₂ and NO₂; each region has its own EKC. That is, although we find the potential existence of U-shaped and N-shaped curves, the region-specific coefficients are enormously heterogeneous across regions. For CO, on the other hand, the random coefficient model shows that there is a dominant U-shaped curve across regions. In addition, energy consumption appears to be the most significant variable in explaining air pollution. Based on these results, we assert that environmental policy should consider the different characteristics of each region and type of pollutant.     

Economics of secondary energy from GTL regarding natural gas reserves of Bolivia

This work aims the economics and the viability of Natural Gas Industrialization in Bolivia, by producing secondary fuels like gas to liquid (GTL)-diesel from natural gas (cleaner than the oil by-product), looking for a clean development with that environmentally well energy using this GTL process. Bolivia has resources that could fulfill these secondary energy resources from GTL. It is possible to process 30 MCMpd of gas obtaining profits from the gas and also from the liquid hydrocarbons that are found in it. Then the Bolivian GTL would present the following advantages: it would export diesel and/or gasoline and would not have to import it anymore.; the exportations of GTL-FT would reach 35 Mbpy, acquiring competitive prices; it would increase productive jobs not only due to the GTL itself, but also from secondary economy linked to GTL market; the use of GTL-FT diesel would bring a “cleaner” environment especially in the urban areas; finally, from the macroeconomic perspective, the investment in the plant construction and supporting works would generate a great amount of job offers.     

Nuclear energy in China: Contested regimes

China is leading the recent revival of nuclear energy programs; it is building not one but four nuclear power plants at a time. The government is determined to expand nuclear energy programs and the general public supports the efforts. China also has the financial and human resources to achieve the desired objective—building 40 GW generation capacity by 2020. The politics surrounding nuclear energy expansion, however, is fluid and competition for influence is vibrant. Nuclear energy issues have become openly contested between general economic and specific industry interests and between international and domestic perspectives and designs. This article examines the political dynamics in China to show how the rival players and their competing interests shape the strategy of nuclear energy development.     

Clean coal use in China: Challenges and policy implications

Energy consumption in China is currently dominated by coal, a major source of air pollution and carbon emissions. The utilization of clean coal technologies is a likely strategic choice for China at present, however, although there have been many successes in clean coal technologies worldwide, they are not widely used in China. This paper examines the challenges that China faces in the implementation of such clean coal technologies, where the analysis shows that those drivers that have a negative bearing on the utilization of clean coal in China are mainly non-technical factors such as the low legal liability of atmospheric pollution related to coal use, and the lack of laws and mandatory regulations for clean coal use in China. Policies for the development of clean coal technologies are in their early stages in China, and the lack of laws and detailed implementation requirements for clean coal require resolution in order to accelerate China's clean coal developments. Currently, environmental pollution has gained widespread attention from the wider Chinese populace and taking advantage of this opportunity provides a space in which to regain the initiative to raise people’s awareness of clean coal products, and improve enterprises’ enthusiasm for clean coal.     

Blue sensitizers for solar cells: Natural dyes from Calafate and Jaboticaba

Blue-violet anthocyanins from Jaboticaba (Myrtus cauliflora Mart) and Calafate (Berberies buxifolia Lam) were employed as TiO₂ dye-sensitizers. Solar cells sensitized by Jaboticaba extracts achieved up to J_sc=9.0 mA cm⁻², V_oc=0.59 V, P_max=1.9 mW cm⁻² and ff=0.54, while for Calafate sensitized cells the values determined were up to J_sc=6.2 mA cm⁻², V_oc=0.47 V, P_max=1.1 mW cm⁻² and ff=0.36. Other natural dyes were evaluated without significant photocurrent, demonstrating that only selected extracts are capable of converting sunlight in electricity. The results obtained with extracts of Jaboticaba and Calafate show a successful conversion of visible light into electricity by using natural dyes as wide band-gap semiconductor sensitizers in dye-sensitized solar cells. It also represents an environmentally friendly alternative for dye-sensitized solar cells with low cost production and an excellent system for educational purposes.     

Production of hydrogen for export from wind and solar energy,natural gas,and coal in Australia

Hydrogen production for export to Japan and Korea is increasingly popular in Australia. The theoretically possible paths include the use of the excess wind and solar energy supply to the grid to produce hydrogen from natural gas or coal. As a contribution to this debate, here I discuss the present contribution of wind and solar to the electricity grid, how this contribution might be expanded to make a grid wind and solar only, what is the energy storage needed to permit this supply, and what is the ratio of domestic total primary energy supply to electricity use. These factors are required to determine the likeliness of producing hydrogen for export. The wind and solar energy capacity, presently at 6.7 and 11.4 GW, have to increase almost 8 times up to values of 53 and 90 GW respectively to support a wind and solar energy only electricity grid for the southeast states only. Additionally, it is necessary to build-up energy storage of actual power >50 GW and stored energy >3000 GW h to stabilize the grid. If the other states and territories are considered, and also the total primary energy supply (TPES) rather than just electricity, the wind and solar capacity must be increased of a further 6–8 times. It is concluded that it is extremely unlikely that hydrogen for export could be produced from the splitting of the water molecule by using excess wind and solar energy, and it is very unlikely that wind and solar may fully cover the local TPES needs. The most likely scenario is production hydrogen via syngas from either natural gas or coal. Production from natural gas and coal needs further development of techniques, to include CO₂ capture, a way to reuse or store CO₂, and finally, the better energy efficiency of the conversion processes. There are several challenges for using natural gas or coal to produce hydrogen with near-zero greenhouse gas emissions. Carbon capture, utilization, and storage technologies that ensure no CO₂ is released in the production process, and new technologies to separate the oxygen from the air, and in case of natural gas, the water, and the CO₂ from the combustion products, are urgently needed to make sense of the fossil fuel hydrogen production. There is no benefit from producing hydrogen from fossil fuels without addressing the CO₂ issue, as well as the fuel energy penalty issue during conversion, that is simply translating in a net loss of fuel energy with the same CO₂ emission.     

Carbon charges and natural gas use in China

Substitution of natural gas for coal in China's power sector could significantly reduce emissions of carbon dioxide, but gas-fired power is generally more costly than coal-fired power in China today. This paper explores how carbon charges and carbon sequestration technology might tip the balance in favour of gas. The costs of electricity from new coal-fired and gas-fired power plants in China are compared under various assumptions about fuel costs, exchange rates, carbon dioxide charges, and application of carbon sequestration technology. Under average cost conditions today, gas-fired power is roughly two-thirds more costly than coal-fired power. But with a charge of $20/tonne of carbon dioxide, the costs of gas- and coal-fired power would typically be about equal. Over the longer term, carbon sequestration technology could be economical with a carbon dioxide charge of $22/tonne or more under typical cost conditions, but gas with sequestration would not have a clear cost advantage over coal with sequestration unless the charge exceeded $35/tonne.     

The use of natural gas and geothermal energy in school units. Greece: A case study

The ever-increasing degradation of the environment along with high demands for energy consumption in buildings has prompted many countries to use other energy sources such as natural gas and geothermal energy instead of oil.This study refers to the use of natural gas in school units in Greece. More specifically, it focuses on school units that are connected to the natural gas network and on the economic and environmental benefits arising from this.In this context, the advantages and disadvantages in using natural gas are compared with those resulting from the use of geothermal energy. In areas which have a significant geothermal potential, the choice of geothermal heating and cooling of large school units is the best solution, but this however does not apply to all areas. Clearly, the development of geothermal energy in school units is still in pilot stage.However, the use of natural gas in school units has been rising over the last decade and it has already contributed to some extent towards the reduction of carbon dioxide and towards saving natural resources. Thus, the survey shows clear advantages in using natural gas and in plans to extend its use to other school units.     

Urban energy use and carbon emissions from cities in China and policy implications

Urban areas contain 40% of the population and contribute 75% of the Chinese national economy. Thus, a better understanding of urban energy uses is necessary for Chinese decision-makers at various levels to address energy security, climate change mitigation, and local pollution abatement. Therefore, this paper addresses three key questions: What is the urban contribution to China's energy usage and CO₂ emissions? What is the contribution of large cities, and what alternate energy–economy pathways are they following? How have energy uses and CO₂ emissions transformed in the last two decades in key Chinese cities? This three-tier analysis illustrates the changes in urban energy uses and CO₂ emissions in China. The results show that the urban contributions make up 84% of China's commercial energy usage. The 35 largest cities in China, which contain 18% of the population, contribute 40% of China's energy uses and CO₂ emissions. In four provincial cities, the per capita energy usage and CO₂ emissions have increased several-fold. Rapid progress was made in reducing the carbon intensity of economic activities in cities throughout the 1990s, but alarmingly, such progress has either slowed down or been reversed in the last few years. These results have important policy implications.     

Western China energy development and west to east energy transfer: Application of the Western China Sustainable Energy Development Model

China is striving for coordinated regional economic development and to solve the energy shortage in eastern China through a western China development plan with one focus being energy development and west to east energy transfer. This paper describes Western China Sustainable Energy Development Model (WSED) to evaluate various energy development scenarios for western China. The model includes a Western China MARKAL model, a Computable General Equilibrium Model for Western China (WCGE), and an Energy Service Demand Projection Model (ESDP). The ESDP provides energy service demand projections for the Western China MARKAL model, while the WCGE provides macroeconomic inputs for the ESDP and analyzes the impact of different energy development scenarios on western China economy. A reference scenario and several different west to east energy transfer scenarios with and without consideration of the water constraints and the endogenous technology learning are presented. The modeling describes the energy consumption, carbon emissions, water consumption, energy investment cost, and the impact on western China GDP of the different scenarios through the year 2050. These results have implications on sustainable energy development policies and sustainable west to east energy transfer strategies.     

Industrial relocation and energy consumption: Evidence from China

With economic development and the change of industrial structure, industrial relocation is an inevitable trend. In the process of industrial relocation, environmental externality and social cost could occur due to market failure and government failure. Little attention has been paid to this issue. In this paper, we address it with a theoretical analysis and an empirical investigation on the relationship between China's industrial relocation in the early 1990s and energy consumption which is the primary source of CO₂ emission, an environmental externality that causes increasing concerns. The macro-policy analysis suggests that there would be a positive link between China's industrial relocation in the early 1990s and energy saving (and environmental externalities reduction). Using fixed-effect regression model and simulation method, we provide an empirical support to this argument. In order to further reduce environmental externalities and social cost in the process of industrial relocation, we provide policy suggestions as follows: First, strengthen the evaluation of environmental benefits/costs; Second, pay more attention to the coordinated social-economic development; Third, avoid long-lived investment in high-carbon infrastructure in areas with industries moved in; Fourth, address employment issue in the areas with industries moved out.