IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v92y2020ics014098832030308x.html
   My bibliography  Save this article

The role of BECCS in deep decarbonization of China's economy: A computable general equilibrium analysis

Author

Listed:
  • Huang, Xiaodan
  • Chang, Shiyan
  • Zheng, Dingqian
  • Zhang, Xiliang

Abstract

Climate change has significant impacts on natural ecosystems and human living environments. Bioenergy with carbon capture and storage (BECCS) is a critical technology that can offer net CO2 emission reductions while providing a sustainable energy supply at lower costs. The role of the BECCS deployment in achieving deep decarbonization in China needs to be quantified. Scenario analyses were conducted in this study based on a computable general equilibrium energy-economic model, the China-in-Global Energy Model (C-GEM), with detailed representations of BECCS. The results showed that BECCS will capture 0.59 gigatonnes of CO2 in 2050 under the 2 °C Scenario and 0.95 gigatonnes of CO2 in 2050 under the 1.5 °C Scenario, respectively. If these emission targets have to be reached without BECCS, the carbon price and gross domestic product (GDP) losses will be higher. Especially under the 1.5 °C Scenario, the deployment of BECCS can reduce the carbon price by 61% and the GDP loss rate by three percentage points in 2050 compared with that without the deployment of BECCS.

Suggested Citation

  • Huang, Xiaodan & Chang, Shiyan & Zheng, Dingqian & Zhang, Xiliang, 2020. "The role of BECCS in deep decarbonization of China's economy: A computable general equilibrium analysis," Energy Economics, Elsevier, vol. 92(C).
    • Handle: RePEc:eee:eneeco:v:92:y:2020:i:c:s014098832030308x
    DOI: 10.1016/j.eneco.2020.104968
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S014098832030308X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.eneco.2020.104968?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. World Bank, 2019. "Global Economic Prospects, January 2019," World Bank Publications - Books, The World Bank Group, number 31066, December.
    2. David Klein & Gunnar Luderer & Elmar Kriegler & Jessica Strefler & Nico Bauer & Marian Leimbach & Alexander Popp & Jan Dietrich & Florian Humpenöder & Hermann Lotze-Campen & Ottmar Edenhofer, 2014. "The value of bioenergy in low stabilization scenarios: an assessment using REMIND-MAgPIE," Climatic Change, Springer, vol. 123(3), pages 705-718, April.
    3. Cao,Jing & Ho,Mun-Sing & Timilsina,Govinda R., 2016. "Impacts of carbon pricing in reducing the carbon intensity of China's GDP," Policy Research Working Paper Series 7735, The World Bank.
    4. Joseph Aldy & William Pizer & Massimo Tavoni & Lara Aleluia Reis & Keigo Akimoto & Geoffrey Blanford & Carlo Carraro & Leon E. Clarke & James Edmonds & Gokul C. Iyer & Haewon C. McJeon & Richard Riche, 2016. "Economic tools to promote transparency and comparability in the Paris Agreement," Nature Climate Change, Nature, vol. 6(11), pages 1000-1004, November.
    5. McFarland, J. R. & Reilly, J. M. & Herzog, H. J., 2004. "Representing energy technologies in top-down economic models using bottom-up information," Energy Economics, Elsevier, vol. 26(4), pages 685-707, July.
    6. Zhang, Xiliang & Karplus, Valerie J. & Qi, Tianyu & Zhang, Da & He, Jiankun, 2016. "Carbon emissions in China: How far can new efforts bend the curve?," Energy Economics, Elsevier, vol. 54(C), pages 388-395.
    7. Henry Chen, Y.-H. & Reilly, John M. & Paltsev, Sergey, 2011. "The prospects for coal-to-liquid conversion: A general equilibrium analysis," Energy Policy, Elsevier, vol. 39(9), pages 4713-4725, September.
    8. Riahi, Keywan & Kriegler, Elmar & Johnson, Nils & Bertram, Christoph & den Elzen, Michel & Eom, Jiyong & Schaeffer, Michiel & Edmonds, Jae & Isaac, Morna & Krey, Volker & Longden, Thomas & Luderer, Gu, 2015. "Locked into Copenhagen pledges — Implications of short-term emission targets for the cost and feasibility of long-term climate goals," Technological Forecasting and Social Change, Elsevier, vol. 90(PA), pages 8-23.
    9. Mingwei Li & Da Zhang & Chiao-Ting Li & Kathleen M. Mulvaney & Noelle E. Selin & Valerie J. Karplus, 2018. "Air quality co-benefits of carbon pricing in China," Nature Climate Change, Nature, vol. 8(5), pages 398-403, May.
    10. Schafer, Andreas & Jacoby, Henry D., 2005. "Technology detail in a multisector CGE model: transport under climate policy," Energy Economics, Elsevier, vol. 27(1), pages 1-24, January.
    11. Chang, Shiyan & Yang, Xi & Zheng, Haotian & Wang, Shuxiao & Zhang, Xiliang, 2020. "Air quality and health co-benefits of China's national emission trading system," Applied Energy, Elsevier, vol. 261(C).
    12. Qi, Tianyu & Winchester, Niven & Karplus, Valerie J. & Zhang, Da & Zhang, Xiliang, 2016. "An analysis of China's climate policy using the China-in-Global Energy Model," Economic Modelling, Elsevier, vol. 52(PB), pages 650-660.
    13. Zhao, Lili & Chang, Shiyan & Wang, Hailin & Zhang, Xiliang & Ou, Xunmin & Wang, Baiyu & Wu, Maorong, 2015. "Long-term projections of liquid biofuels in China: Uncertainties and potential benefits," Energy, Elsevier, vol. 83(C), pages 37-54.
    14. Yuan, Yongna & Duan, Hongbo & Tsvetanov, Tsvetan G., 2020. "Synergizing China's energy and carbon mitigation goals: General equilibrium modeling and policy assessment," Energy Economics, Elsevier, vol. 89(C).
    15. Qi, Tianyu & Weng, Yuyan, 2016. "Economic impacts of an international carbon market in achieving the INDC targets," Energy, Elsevier, vol. 109(C), pages 886-893.
    16. David L. McCollum & Wenji Zhou & Christoph Bertram & Harmen-Sytze Boer & Valentina Bosetti & Sebastian Busch & Jacques Després & Laurent Drouet & Johannes Emmerling & Marianne Fay & Oliver Fricko & Sh, 2018. "Energy investment needs for fulfilling the Paris Agreement and achieving the Sustainable Development Goals," Nature Energy, Nature, vol. 3(7), pages 589-599, July.
    17. Weng, Yuwei & Chang, Shiyan & Cai, Wenjia & Wang, Can, 2019. "Exploring the impacts of biofuel expansion on land use change and food security based on a land explicit CGE model: A case study of China," Applied Energy, Elsevier, vol. 236(C), pages 514-525.
    18. World Bank, 2019. "Global Economic Prospects, June 2019," World Bank Publications - Books, The World Bank Group, number 31655, December.
    19. Li, Wei & Jia, Zhijie, 2016. "The impact of emission trading scheme and the ratio of free quota: A dynamic recursive CGE model in China," Applied Energy, Elsevier, vol. 174(C), pages 1-14.
    20. Ronald Sands & Hannah Förster & Carol Jones & Katja Schumacher, 2014. "Bio-electricity and land use in the Future Agricultural Resources Model (FARM)," Climatic Change, Springer, vol. 123(3), pages 719-730, April.
    21. Winchester, Niven & Reilly, John M., 2015. "The feasibility, costs, and environmental implications of large-scale biomass energy," Energy Economics, Elsevier, vol. 51(C), pages 188-203.
    22. Pete Smith & Steven J. Davis & Felix Creutzig & Sabine Fuss & Jan Minx & Benoit Gabrielle & Etsushi Kato & Robert B. Jackson & Annette Cowie & Elmar Kriegler & Detlef P. van Vuuren & Joeri Rogelj & Ph, 2016. "Biophysical and economic limits to negative CO2 emissions," Nature Climate Change, Nature, vol. 6(1), pages 42-50, January.
    23. Qi, Tianyu & Zhang, Xiliang & Karplus, Valerie J., 2014. "The energy and CO2 emissions impact of renewable energy development in China," Energy Policy, Elsevier, vol. 68(C), pages 60-69.
    24. Angel Aguiar & Maksym Chepeliev & Erwin L. Corong & Robert McDougall & Dominique van der Mensbrugghe, 2019. "The GTAP Data Base: Version 10," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 4(1), pages 1-27, June.
    25. Glen P. Peters & Oliver Geden, 2017. "Catalysing a political shift from low to negative carbon," Nature Climate Change, Nature, vol. 7(9), pages 619-621, September.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Pan, Yuling & Dong, Feng, 2023. "Green finance policy coupling effect of fossil energy use rights trading and renewable energy certificates trading on low carbon economy: Taking China as an example," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 658-679.
    2. Jagu Schippers, Emma & Massol, Olivier, 2022. "Unlocking CO2 infrastructure deployment: The impact of carbon removal accounting," Energy Policy, Elsevier, vol. 171(C).
    3. Lin, Zewei & Wang, Peng & Ren, Songyan & Zhao, Daiqing, 2023. "Economic and environmental impacts of EVs promotion under the 2060 carbon neutrality target—A CGE based study in Shaanxi Province of China," Applied Energy, Elsevier, vol. 332(C).
    4. Hu, Yingying & Wu, Wei, 2023. "Can fossil energy make a soft landing？— the carbon-neutral pathway in China accompanying CCS," Energy Policy, Elsevier, vol. 174(C).
    5. An, Kangxin & Wang, Can & Cai, Wenjia, 2023. "Low-carbon technology diffusion and economic growth of China: an evolutionary general equilibrium framework," Structural Change and Economic Dynamics, Elsevier, vol. 65(C), pages 253-263.
    6. Guo, Jian & Zhong, Minghao & Chen, Shuran, 2022. "Analysis and simulation of BECCS vertical integration model in China based on evolutionary game and system dynamics," Energy, Elsevier, vol. 252(C).
    7. Xu Deng & Fei Teng & Minpeng Chen & Zhangliu Du & Bin Wang & Renqiang Li & Pan Wang, 2024. "Exploring negative emission potential of biochar to achieve carbon neutrality goal in China," Nature Communications, Nature, vol. 15(1), pages 1-11, December.
    8. Guo, Jian-Xin & Tan, Xianchun & Gu, Baihe & Zhu, Kaiwei, 2022. "Integration of supply chain management of hybrid biomass power plant with carbon capture and storage operation," Renewable Energy, Elsevier, vol. 190(C), pages 1055-1065.
    9. Pan, Yuling & Dong, Feng, 2023. "The impacts of energy finance policies and renewable energy subsidy on energy vulnerability under carbon peaking scenarios," Energy, Elsevier, vol. 273(C).
    10. Jia, Zhijie & Lin, Boqiang & Wen, Shiyan, 2022. "Electricity market Reform: The perspective of price regulation and carbon neutrality," Applied Energy, Elsevier, vol. 328(C).
    11. Weng, Yuwei & Cai, Wenjia & Wang, Can, 2021. "Evaluating the use of BECCS and afforestation under China’s carbon-neutral target for 2060," Applied Energy, Elsevier, vol. 299(C).
    12. Shenghao Feng & Xiujian Peng & Philip Adams, 2021. "Energy and Economic Implications of Carbon Neutrality in China -- A Dynamic General Equilibrium Analysis," Centre of Policy Studies/IMPACT Centre Working Papers g-318, Victoria University, Centre of Policy Studies/IMPACT Centre.
    13. Xiaocheng Zhu & Yanru Zhang & Zhenzhong Wang & Xunzhang Pan, 2022. "Comparison of China’s Biomass Combustion Power Generation with Different Installed Capacities," Energies, MDPI, vol. 15(4), pages 1-8, February.
    14. Cao, Jing & Dai, Hancheng & Li, Shantong & Guo, Chaoyi & Ho, Mun & Cai, Wenjia & He, Jianwu & Huang, Hai & Li, Jifeng & Liu, Yu & Qian, Haoqi & Wang, Can & Wu, Libo & Zhang, Xiliang, 2021. "The general equilibrium impacts of carbon tax policy in China: A multi-model comparison," Energy Economics, Elsevier, vol. 99(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Mu, Yaqian & Wang, Can & Cai, Wenjia, 2018. "The economic impact of China's INDC: Distinguishing the roles of the renewable energy quota and the carbon market," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2955-2966.
    2. Mu, Yaqian & Evans, Samuel & Wang, Can & Cai, Wenjia, 2018. "How will sectoral coverage affect the efficiency of an emissions trading system? A CGE-based case study of China," Applied Energy, Elsevier, vol. 227(C), pages 403-414.
    3. Jiang, Jingjing & Ye, Bin & Liu, Junguo, 2019. "Research on the peak of CO2 emissions in the developing world: Current progress and future prospect," Applied Energy, Elsevier, vol. 235(C), pages 186-203.
    4. Weng, Yuwei & Cai, Wenjia & Wang, Can, 2021. "Evaluating the use of BECCS and afforestation under China’s carbon-neutral target for 2060," Applied Energy, Elsevier, vol. 299(C).
    5. Hu, Haisheng & Zhao, Laijun & Dong, Wanhao, 2023. "How to achieve the goal of carbon peaking by the energy policy? A simulation using the DCGE model for the case of Shanghai, China," Energy, Elsevier, vol. 278(PA).
    6. Britz, Wolfgang & Li, Jingwen & Shang, Linmei, 2021. "Combining large-scale sensitivity analysis in Computable General Equilibrium models with Machine Learning: An Example Application to policy supporting the bio-economy," Conference papers 333285, Purdue University, Center for Global Trade Analysis, Global Trade Analysis Project.
    7. Dioha, Michael O. & Kumar, Atul, 2020. "Exploring the energy system impacts of Nigeria's Nationally Determined Contributions and low-carbon transition to mid-century," Energy Policy, Elsevier, vol. 144(C).
    8. Sue Wing, Ian & Eckaus, Richard S., 2007. "The implications of the historical decline in US energy intensity for long-run CO2 emission projections," Energy Policy, Elsevier, vol. 35(11), pages 5267-5286, November.
    9. P. A. Turner & C. B. Field & D. B. Lobell & D. L. Sanchez & K. J. Mach, 2018. "Unprecedented rates of land-use transformation in modelled climate change mitigation pathways," Nature Sustainability, Nature, vol. 1(5), pages 240-245, May.
    10. Mun Ho & Wolfgang Britz & Ruth Delzeit & Florian Leblanc & Roberto Roson & Franziska Schuenemann & Matthias Weitzel, 2020. "Modelling Consumption and Constructing Long-Term Baselines in Final Demand," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 63-108, June.
    11. Fiedler, Salomon & Gern, Klaus-Jürgen & Jannsen, Nils & Wolters, Maik H., 2019. "Growth prospects, the natural interest rate, and monetary policy," Economics - The Open-Access, Open-Assessment E-Journal (2007-2020), Kiel Institute for the World Economy (IfW Kiel), vol. 13, pages 1-34.
    12. Uchida, Yuki & Ono, Tetsuo, 2021. "Political economy of taxation, debt ceilings, and growth," European Journal of Political Economy, Elsevier, vol. 68(C).
    13. Yidan Chen & Jiang Lin & David Roland-Holst & Xu Liu & Can Wang, 2023. "Declining Renewable Costs, Emissions Trading, and Economic Growth: China’s Power System at the Crossroads," Energies, MDPI, vol. 16(2), pages 1-14, January.
    14. Perdana, Sigit & Vielle, Marc, 2022. "Making the EU Carbon Border Adjustment Mechanism acceptable and climate friendly for least developed countries," Energy Policy, Elsevier, vol. 170(C).
    15. Qu, Yang & Swales, J. Kim & Hooper, Tara & Austen, Melanie C. & Wang, Xinhao & Papathanasopoulou, Eleni & Huang, Junling & Yan, Xiaoyu, 2023. "Economic trade-offs in marine resource use between offshore wind farms and fisheries in Scottish waters," Energy Economics, Elsevier, vol. 125(C).
    16. repec:thr:techub:10019:y:2021:i:1:p:401-411 is not listed on IDEAS
    17. Taran Faehn & Gabriel Bachner & Robert Beach & Jean Chateau & Shinichiro Fujimori & Madanmohan Ghosh & Meriem Hamdi-Cherif & Elisa Lanzi & Sergey Paltsev & Toon Vandyck & Bruno Cunha & Rafael Garaffa , 2020. "Capturing Key Energy and Emission Trends in CGE models: Assessment of Status and Remaining Challenges," Journal of Global Economic Analysis, Center for Global Trade Analysis, Department of Agricultural Economics, Purdue University, vol. 5(1), pages 196-272, June.
    18. Schumacher, Katja & Sands, Ronald D., 2007. "Where are the industrial technologies in energy-economy models? An innovative CGE approach for steel production in Germany," Energy Economics, Elsevier, vol. 29(4), pages 799-825, July.
    19. Vidović Nikola & Ritan Vladana, 2022. "New approach to estimating macroeconomic determinants of informal employment," Economics, Sciendo, vol. 10(2), pages 95-108, December.
    20. Wang, Xu & Zhu, Lei & Fan, Ying, 2018. "Transaction costs, market structure and efficient coverage of emissions trading scheme: A microlevel study from the pilots in China," Applied Energy, Elsevier, vol. 220(C), pages 657-671.
    21. Xu, Zhongming & Fang, Chenhao & Ma, Tieju, 2020. "Analysis of China’s olefin industry using a system optimization model considering technological learning and energy consumption reduction," Energy, Elsevier, vol. 191(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:eneeco:v:92:y:2020:i:c:s014098832030308x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/eneco .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.