The transition to new energy sources is critical for addressing global carbon emissions. However, there is limited study on how decentralized energy governance (DEG) strategies can effectively promote this transition and mitigate carbon emissions. This study investigates the impact and mechanism of China’s New Energy Demonstration City (NEDC) policy, a prominent DEG strategy, on reducing carbon emissions. Using city-level data from 283 Chinese cities spanning 2006 to 2021, we employ the difference-in-differences method to analyze the policy’s effects. The results suggest that the DEG strategy significantly reduces carbon emissions, primarily through renewable energy innovation and energy transitions. Heterogeneity analysis further highlights that the policy’s effectiveness is more pronounced in non-resource- based cities, R&D-intensive cities, and those with strong environmental regulations. These findings underline the importance of expanding DEG strategies and investing in resources to foster innovation and accelerate energy transitions, providing valuable policy recommendations for achieving carbon neutrality.
Tag: China
Evaluation of the Winter Pollution Mitigation Policy in China
Rapid industrialization in China has come with substantial increases in local air pollution. This paper quantifies the health benefits of the Winter Pollution Mitigation Policy of 2017. We estimate that this policy caused an 18% reduction in fine particulate concentration levels, resulting in 19,400 deaths avoided in 2017 due to pollution exposure in Beijing, Tianjin,…
Financing the Last Mile of Electricity-for-All Programs: Experiences from China
Financing electricity for all programs has been a main barrier to achieve universal energy access. In this paper, we investigate the financing mechanisms of China’s electricity for all programs with a focus on the last mile problem, and we find that central investment, cost sharing, and public-private partnerships are essential for China’s success in such…
Analysing the Mechanism of Decentralised Energy Governance Strategy on Reducing Carbon Emissions: Evidence from China
The transition to new energy sources is critical for addressing global carbon emissions. However, there is limited study on how decentralized energy governance (DEG) strategies can effectively promote this transition and mitigate carbon emissions. This study investigates the impact and mechanism of China’s New Energy Demonstration City (NEDC) policy, a prominent DEG strategy, on reducing…
Lessons learned from China’s regional carbon market pilots
This paper gives an overview of the performance of China’s seven regional carbon market pilots and the range of approaches they have used. We assessed the outcomes of these pilots using publicly available secondary market trading data. The differences in market performance are explained by the design of key market elements such as emission allowances,…
Key issues in designing China’s national carbon emissions trading system
The design of China’s national carbon emissions trading system (ETS) has been shaped by major considerations including the significant disparities that exist between the different regions of the country, concerns about possible impacts of the ETS on the economy, the continuously evolving policy environment, and the need to divide responsibilities appropriately among relevant authorities. To…
Incentivizing firm compliance with China’s national emissions trading system
When it launches in 2017, China’s CO2 emissions trading system (ETS) will cover the largest CO2 emissions volume of any system to date and be among the very first to launch in a developing country. We evaluate the potential of an ETS to alter the emitting behavior of covered firms and to support the achievement…
Policies and Institutions to Support Carbon Neutrality in China by 2060
China’s leadership has announced its aim to achieve carbon neutrality at the national level by 2060. Recent statements clarify that the country’s pledge applies to all greenhouse gases. This review examines the extent to which current policies and institutions would need to evolve to support deep decarbonization in the world’s largest emitting nation. First, we…
Promoting Large and Closing Small in China’s Coal Power Sector 2006–2013: A CO2 Mitigation Assessment Based on a Vintage Structure
In the period 2006-2013, China’s power sector adopted a policy which aimed to add large scale units (larger than 600 MW) and decommission small, old (but still technically functioning) and inefficient power plants in order to accelerate energy saving and mitigate emissions. The early-retirement (ER) of nearly 90 GW of capacity and massive new coal…
Will China Lead the World into a Clean-energy Future?
China became the world’s biggest energy consumer in 2009 and the biggest emitter of carbon dioxide (CO2) two years earlier, having surpassed the United States on both counts. Driven by a strong economy, China will almost certainly see both of these facts reinforced in the years to come, despite its energy consumption and CO2 emissions…