IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v58y2013icp319-328.html
   My bibliography  Save this article

A multi-period optimization model for planning of China's power sector with consideration of carbon dioxide mitigation—The importance of continuous and stable carbon mitigation policy

Author

Listed:
  • Zhang, Dongjie
  • Liu, Pei
  • Ma, Linwei
  • LI, Zheng

Abstract

A great challenge China's power sector faces is to mitigate its carbon emissions whilst satisfying the ever-increasing power demand. Optimal planning of the power sector with consideration of carbon mitigation for a long-term future remains a complex task, involving many technical alternatives and an infinite number of possible plants installations, retrofitting, and decommissioning over the planning horizon. Previously the authors built a multi-period optimization model for the planning of China's power sector during 2010–2050. Based on that model, this paper executed calculations on the optimal pathways of China's power sector with two typical decision-making modes, which are based on “full-information” and “limited-information” hypothesis, and analyzed the impacts on the optimal planning results by two typical types of carbon tax policies including a “continuous and stable” one and a “loose first and tight later” one. The results showed that making carbon tax policy for long-term future, and improving the continuity and stability in policy execution can effectively help reduce the accumulated total carbon emissions, and also the cost for carbon mitigation of the power sector. The conclusion of this study is of great significance for the policy makers to make carbon mitigation policies in China and other countries as well.

Suggested Citation

  • Zhang, Dongjie & Liu, Pei & Ma, Linwei & LI, Zheng, 2013. "A multi-period optimization model for planning of China's power sector with consideration of carbon dioxide mitigation—The importance of continuous and stable carbon mitigation policy," Energy Policy, Elsevier, vol. 58(C), pages 319-328.
    • Handle: RePEc:eee:enepol:v:58:y:2013:i:c:p:319-328
    DOI: 10.1016/j.enpol.2013.03.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421513001717
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2013.03.017?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. Yang, Ming & Blyth, William & Bradley, Richard & Bunn, Derek & Clarke, Charlie & Wilson, Tom, 2008. "Evaluating the power investment options with uncertainty in climate policy," Energy Economics, Elsevier, vol. 30(4), pages 1933-1950, July.
    2. Hansson, Anders & Bryngelsson, Mårten, 2009. "Expert opinions on carbon dioxide capture and storage--A framing of uncertainties and possibilities," Energy Policy, Elsevier, vol. 37(6), pages 2273-2282, June.
    3. Zhou, Wenji & Zhu, Bing & Fuss, Sabine & Szolgayová, Jana & Obersteiner, Michael & Fei, Weiyang, 2010. "Uncertainty modeling of CCS investment strategy in China's power sector," Applied Energy, Elsevier, vol. 87(7), pages 2392-2400, July.
    4. Fuss, Sabine & Szolgayova, Jana & Obersteiner, Michael & Gusti, Mykola, 2008. "Investment under market and climate policy uncertainty," Applied Energy, Elsevier, vol. 85(8), pages 708-721, August.
    5. Avinash K. Dixit & Robert S. Pindyck, 1994. "Investment under Uncertainty," Economics Books, Princeton University Press, edition 1, number 5474.
    6. Blyth, William & Bradley, Richard & Bunn, Derek & Clarke, Charlie & Wilson, Tom & Yang, Ming, 2007. "Investment risks under uncertain climate change policy," Energy Policy, Elsevier, vol. 35(11), pages 5766-5773, November.
    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. Prasad, Ravita D. & Bansal, R.C. & Raturi, Atul, 2014. "Multi-faceted energy planning: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 38(C), pages 686-699.
    2. Guangxiao Hu & Xiaoming Ma & Junping Ji, 2017. "A Stochastic Optimization Model for Carbon Mitigation Path under Demand Uncertainty of the Power Sector in Shenzhen, China," Sustainability, MDPI, vol. 9(11), pages 1-12, October.
    3. Sadeghi, Hadi & Rashidinejad, Masoud & Abdollahi, Amir, 2017. "A comprehensive sequential review study through the generation expansion planning," Renewable and Sustainable Energy Reviews, Elsevier, vol. 67(C), pages 1369-1394.
    4. Liu, Xi & Du, Huibin & Brown, Marilyn A. & Zuo, Jian & Zhang, Ning & Rong, Qian & Mao, Guozhu, 2018. "Low-carbon technology diffusion in the decarbonization of the power sector: Policy implications," Energy Policy, Elsevier, vol. 116(C), pages 344-356.
    5. Li, Ying & Lukszo, Zofia & Weijnen, Margot, 2015. "The implications of CO2 price for China’s power sector decarbonization," Applied Energy, Elsevier, vol. 146(C), pages 53-64.
    6. Viebahn, Peter & Vallentin, Daniel & Höller, Samuel, 2015. "Prospects of carbon capture and storage (CCS) in China’s power sector – An integrated assessment," Applied Energy, Elsevier, vol. 157(C), pages 229-244.
    7. Hailin Mu & Zhewen Pei & Hongye Wang & Nan Li & Ye Duan, 2022. "Optimal Strategy for Low-Carbon Development of Power Industry in Northeast China Considering the ‘Dual Carbon’ Goal," Energies, MDPI, vol. 15(17), pages 1-22, September.
    8. Guerra, Omar J. & Tejada, Diego A. & Reklaitis, Gintaras V., 2019. "Climate change impacts and adaptation strategies for a hydro-dominated power system via stochastic optimization," Applied Energy, Elsevier, vol. 233, pages 584-598.
    9. Chen, Hao & Tang, Bao-Jun & Liao, Hua & Wei, Yi-Ming, 2016. "A multi-period power generation planning model incorporating the non-carbon external costs: A case study of China," Applied Energy, Elsevier, vol. 183(C), pages 1333-1345.
    10. Almansoori, Ali & Betancourt-Torcat, Alberto, 2015. "Design optimization model for the integration of renewable and nuclear energy in the United Arab Emirates’ power system," Applied Energy, Elsevier, vol. 148(C), pages 234-251.
    11. Jin, Jingliang & Zhou, Peng & Zhang, Mingming & Yu, Xianyu & Din, Hao, 2018. "Balancing low-carbon power dispatching strategy for wind power integrated system," Energy, Elsevier, vol. 149(C), pages 914-924.

    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. Mo, Jian-Lei & Schleich, Joachim & Zhu, Lei & Fan, Ying, 2015. "Delaying the introduction of emissions trading systems—Implications for power plant investment and operation from a multi-stage decision model," Energy Economics, Elsevier, vol. 52(PB), pages 255-264.
    2. Svensson, Elin & Berntsson, Thore, 2011. "Planning future investments in emerging energy technologies for pulp mills considering different scenarios for their investment cost development," Energy, Elsevier, vol. 36(11), pages 6508-6519.
    3. ShahNazari, Mahdi & McHugh, Adam & Maybee, Bryan & Whale, Jonathan, 2014. "The effect of political cycles on power investment decisions: Expectations over the repeal and reinstatement of carbon policy mechanisms in Australia," Applied Energy, Elsevier, vol. 130(C), pages 157-165.
    4. Romano, Teresa & Fumagalli, Elena, 2018. "Greening the power generation sector: Understanding the role of uncertainty," Renewable and Sustainable Energy Reviews, Elsevier, vol. 91(C), pages 272-286.
    5. Shahnazari, Mahdi & McHugh, Adam & Maybee, Bryan & Whale, Jonathan, 2014. "Evaluation of power investment decisions under uncertain carbon policy: A case study for converting coal fired steam turbine to combined cycle gas turbine plants in Australia," Applied Energy, Elsevier, vol. 118(C), pages 271-279.
    6. Linnerud, Kristin & Andersson, Ane Marte & Fleten, Stein-Erik, 2014. "Investment timing under uncertain renewable energy policy: An empirical study of small hydropower projects," Energy, Elsevier, vol. 78(C), pages 154-164.
    7. Zhang, M.M. & Zhou, D.Q. & Zhou, P. & Chen, H.T., 2017. "Optimal design of subsidy to stimulate renewable energy investments: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 873-883.
    8. Liu, Shen & Colson, Gregory & Wetzstein, Michael, 2018. "Biodiesel investment in a disruptive tax-credit policy environment," Energy Policy, Elsevier, vol. 123(C), pages 19-30.
    9. Ioannou, Anastasia & Angus, Andrew & Brennan, Feargal, 2017. "Risk-based methods for sustainable energy system planning: A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 602-615.
    10. Zhou, Wenji & Zhu, Bing & Fuss, Sabine & Szolgayová, Jana & Obersteiner, Michael & Fei, Weiyang, 2010. "Uncertainty modeling of CCS investment strategy in China's power sector," Applied Energy, Elsevier, vol. 87(7), pages 2392-2400, July.
    11. Nagy, Roel L.G. & Hagspiel, Verena & Kort, Peter M., 2021. "Green capacity investment under subsidy withdrawal risk," Energy Economics, Elsevier, vol. 98(C).
    12. Svensson, Elin & Berntsson, Thore & Strömberg, Ann-Brith & Patriksson, Michael, 2009. "An optimization methodology for identifying robust process integration investments under uncertainty," Energy Policy, Elsevier, vol. 37(2), pages 680-685, February.
    13. Tolis, Athanasios I. & Rentizelas, Athanasios A., 2011. "An impact assessment of electricity and emission allowances pricing in optimised expansion planning of power sector portfolios," Applied Energy, Elsevier, vol. 88(11), pages 3791-3806.
    14. Boomsma, Trine Krogh & Linnerud, Kristin, 2015. "Market and policy risk under different renewable electricity support schemes," Energy, Elsevier, vol. 89(C), pages 435-448.
    15. de Oliveira, Denis Luis & Brandao, Luiz E. & Igrejas, Rafael & Gomes, Leonardo Lima, 2014. "Switching outputs in a bioenergy cogeneration project: A real options approach," Renewable and Sustainable Energy Reviews, Elsevier, vol. 36(C), pages 74-82.
    16. Svensson, Elin & Strömberg, Ann-Brith & Patriksson, Michael, 2011. "A model for optimization of process integration investments under uncertainty," Energy, Elsevier, vol. 36(5), pages 2733-2746.
    17. Lee, Suh-Young & Lee, Jae-Uk & Lee, In-Beum & Han, Jeehoon, 2017. "Design under uncertainty of carbon capture and storage infrastructure considering cost, environmental impact, and preference on risk," Applied Energy, Elsevier, vol. 189(C), pages 725-738.
    18. Barradale, Merrill Jones, 2014. "Investment under uncertain climate policy: A practitioners׳ perspective on carbon risk," Energy Policy, Elsevier, vol. 69(C), pages 520-535.
    19. Mo, Jian-Lei & Agnolucci, Paolo & Jiang, Mao-Rong & Fan, Ying, 2016. "The impact of Chinese carbon emission trading scheme (ETS) on low carbon energy (LCE) investment," Energy Policy, Elsevier, vol. 89(C), pages 271-283.
    20. Zhang, M.M. & Wang, Qunwei & Zhou, Dequn & Ding, H., 2019. "Evaluating uncertain investment decisions in low-carbon transition toward renewable energy," Applied Energy, Elsevier, vol. 240(C), pages 1049-1060.

    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:enepol:v:58:y:2013:i:c:p:319-328. 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/enpol .

    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.