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Coal cleaning: a viable strategy for reduced carbon emissions and improved environment in China?
Affiliation:1. Statistics Norway, P.O. Box 8131 Dep. N-0033, Oslo 0033, Norway;2. National Bureau of Statistics, 75 Yuetan Nanjie, Sanlihe Beijing 100 826, China;1. School of Statistics, Jiangxi University of Finance and Economics, Nanchang, Jiangxi 330013, PR China;2. Research Center of Applied Statistics, Jiangxi University of Finance and Economics, Nanchang, Jiangxi 330013, PR China;3. Newhuadu Business School, Minjiang University, Fuzhou 350108, PR China;4. Collaborative Innovation Center for Energy Economics and Energy Policy, China Institute for Studies in Energy Policy, Xiamen University, Fujian 361005, PR China;1. School of Economics and Management, China University of Geosciences, Wuhan 430074, China;2. Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100181, China;3. School of Management and Economics, Beijing Institute of Technology, Beijing 100181, China;1. Key Laboratory of Beijing on Regional Air Pollution Control, College of Environmental & Energy Engineering, Beijing University of Technology, Beijing, 100124, China;2. Chinese Research Academy of Environmental Sciences, Beijing, 100012, China;1. School of Management, Hefei University of Technology, Hefei 230009, China;2. State Grid Anhui Electric Power Research Institute, Hefei 230061, China;3. State Grid Anhui Electric Power Company, Hefei 230061, China;1. Center for Energy and Environmental Policy Research, Beijing Institute of Technology, Beijing 100081, China;2. School of Management and Economics, Beijing Institute of Technology, Beijing 100081, China;3. Sinopec Research Institute of Petroleum Engineering, Beijing 100728, China;4. School of Mathematics and Physics, University of Science and Technology Beijing, Beijing 100083, China;5. Institute of Policy and Management, Chinese Academy of Sciences, Beijing 100190, China
Abstract:China is a dominant energy consumer in global context and current energy forecasts emphasise that China's future energy consumption also will rely heavily on coal. The coal use is the major source of the greenhouse gas CO2 and particles causing serious health damage. This paper looks into the question if coal washing might work as low cost strategy for both CO2 and particle emission reductions. Coal washing removes dirt and rock from raw coal, resulting in a coal product with higher thermal energy and less air pollutants. Coal cleaning capacity has so far not been developed in line with the market potential. In this paper an emerging market for cleaned coal is studied within a CGE model for China. The macro approach catches the repercussions of coal cleaning through increased energy efficiency, lower coal transportation costs and crowding out effect of investments in coal washing plants. Coal cleaning stimulates economic growth and reduces particle emissions, but total energy use, coal use and CO2 emissions increase through a rebound effect supported by the vast reserve of underemployed labourers. A carbon tax on fossil fuel combustion has a limited effect on total emissions. The reason is a coal leakage to tax exempted processing industries.
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