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How to achieve the first step of the carbon-neutrality 2060 target in China: The coal substitution perspective

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  • Jia, Zhijie
  • Lin, Boqiang

Abstract

Nowadays, coal consumption is still dominated in China's energy structure, while China aggressively wants to achieve the goal of carbon neutrality in 2060. The substitution of coal consumption will be the first step to the goal. This paper simulates the scenarios of coal resource tax and investment in renewables by applying China Energy-Environment-Economy Analysis (CEEEA/CGE) model. The simulation results show the different mechanisms between the tax and the investment. In general, the impact of coal resource tax comes relatively early and is an effective way to reduce coal consumption in the short term. Renewable energy investment is a long-term, slow, and fundamental way to substitute coal consumption. However, for a long time, renewable energy should be the main driving force of carbon emission reduction. Consequently, we suggest that the process of coal substitution can be carried out through the way of “tax priority in the early stage and investment in the later stage”.

Suggested Citation

  • Jia, Zhijie & Lin, Boqiang, 2021. "How to achieve the first step of the carbon-neutrality 2060 target in China: The coal substitution perspective," Energy, Elsevier, vol. 233(C).
    • Handle: RePEc:eee:energy:v:233:y:2021:i:c:s0360544221014274
    DOI: 10.1016/j.energy.2021.121179
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