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Carbon pricing for low carbon technology diffusion: A survey analysis of China's cement industry

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  • Liu, Xianbing
  • Fan, Yongbin
  • Li, Chen

Abstract

This study estimates the effect of using carbon pricing to promote the diffusion of low carbon technologies based on data collected from 78 cement companies in China. The analysis confirms that they are familiar with major energy saving and low carbon technologies in the sector and have made efforts in energy saving, but are lagging in terms of carbon management. An average payback time of 3.3 years is confirmed as the threshold for cement companies to determine technology investment. The adoptions of target technologies in this survey are at different stages; WHR (waste heat recovery power generation) systems have been largely diffused and the effect of carbon pricing is highly marginal for further adoption. On the other hand, levying a moderate carbon price, i.e., 60 Yuan/t-CO2, may accelerate the diffusion of EMOS (energy management and optimisation systems), recently introduced in China's cement industry. This research goes some way to clarifying the diffusion of low carbon technologies and provides implications for climate countermeasures for the target sector in China.

Suggested Citation

  • Liu, Xianbing & Fan, Yongbin & Li, Chen, 2016. "Carbon pricing for low carbon technology diffusion: A survey analysis of China's cement industry," Energy, Elsevier, vol. 106(C), pages 73-86.
    • Handle: RePEc:eee:energy:v:106:y:2016:i:c:p:73-86
    DOI: 10.1016/j.energy.2016.03.044
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    3. Chenhao Fang & Tieju Ma, 2021. "Technology adoption with carbon emission trading mechanism: modeling with heterogeneous agents and uncertain carbon price," Annals of Operations Research, Springer, vol. 300(2), pages 577-600, May.
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    6. Fang, Chenhao & Ma, Tieju, 2020. "Stylized agent-based modeling on linking emission trading systems and its implications for China's practice," Energy Economics, Elsevier, vol. 92(C).
    7. Chang-Jing Ji & Yu-Jie Hu & Bao-Jun Tang, 2018. "Research on carbon market price mechanism and influencing factors: a literature review," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 92(2), pages 761-782, June.
    8. Jia Xue & Youshi He & Peng Gao & Yin Tang & Hanyang Xu, 2022. "Multi-Agent Evolutionary Game Model: Corporate Low-Carbon Manufacturing, Chinese Government Supervision, and Public Media Investigation," Sustainability, MDPI, vol. 14(9), pages 1-24, May.
    9. Wang, Chunyan & Wang, Ranran & Hertwich, Edgar & Liu, Yi, 2017. "A technology-based analysis of the water-energy-emission nexus of China’s steel industry," Resources, Conservation & Recycling, Elsevier, vol. 124(C), pages 116-128.
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    11. Yang, Lin & Li, Fengyu & Zhang, Xian, 2016. "Chinese companies’ awareness and perceptions of the Emissions Trading Scheme (ETS): Evidence from a national survey in China," Energy Policy, Elsevier, vol. 98(C), pages 254-265.

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