Chinese Economic Development and the Environment

Chinese Economic Development and the Environment

New Horizons in Environmental Economics series

Shunsuke Managi and Shinji Kaneko

Over the past two decades, China has become an economic powerhouse. However, as the world’s largest producer of CO2 emissions, the scale and seriousness of China’s environmental problems are clearly evident. This pioneering book provides an economic analysis of the significant environmental and energy problems facing China in the 21st century.

Chapter 11: Energy Supply-Side and Demand-Side Effects

Shunsuke Managi and Shinji Kaneko

Subjects: asian studies, asian development, development studies, asian development, development economics, economics and finance, development economics, environmental economics, environment, asian environment, environmental economics


2.2 2 1.8 1.6 1.4 1.2 1 1960 1970 1973 1980 1985 1990 1995 1999 2000 2001 Japan United States China Germany United Kingdom 225 Source: OECD/IEA (2003). Figure 11.1 Ratio of TPES to TFEC in selected countries secondary energy carriers. As a result, in the energy demand-side analyses, the secondary energy carriers are usually measured according to the energy service that they can provide (that is, the net calorific value) but not the primary energy equivalent for generating such service. Theoretically, energy demand-side analyses can certainly touch upon the transformation processes as long as they trace the secondary energy carriers back to their generation base to get the generation-based calorific value. In fact, this is a necessary step to get the carbon emissions factor for electricity and heat. The generation-based calorific value and carbon emissions factor are still limited, however, in terms of reflecting the performance of energy supply processes. For each transformation sector, such single indicators obscure the relative importance of transformation losses, distribution losses, re-use of secondary energy in transformation processes, and the influence of international trade. Therefore, to fully understand changes in scale, structure and efficiency on the energy supply side, we need to develop a new model that decomposes the aggregated TPES and C-TPES into the contributions arising from various energy supply sectors or processes. Nowadays China’s conventional coal-based energy supply system is undergoing great challenges due to the rapidly increasing demand for electricity and petroleum products. Direct consumption of coal is declining (see Figure...

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