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China׳s regional balanced development based on the investment in power grid infrastructure

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  • Yang, Fang
  • Zhang, Dingzhong
  • Sun, Chuanwang

Abstract

Due to the stark reality of regional development disparities, China has to confront the sustainable development challenges brought about by social inequality. To compensate for these regional differences in natural resource endowments, effective investment in power grid infrastructure (PGI) and improvement of power grids might prove helpful in reducing poverty and narrowing the development gap. This paper constructs a “Peripheral Degree Index” (PDI) of power grid to measure the effective distance between electricity delivering areas and receiving regions. Moreover we discuss how to efficiently locate the investment in PGI and optimize the allocation of limited financial resources. The results show investment in PGI has higher marginal benefit for less developed provinces in energy delivering regions; and more importantly, improvement of the grid infrastructure in central areas which connect energy receiving and delivering regions. Particularly, to improve the grid facilities in the central areas could reduce electricity transmission cost and help to alleviate the railway strain for coal transportation. Therefore, our findings suggest that it is more advisable to locate the investment of power grid infrastructure in the central provinces that are located at strategic conjunctions of the nationwide power grid, including Shanxi, Henan, Hubei and Hebei.

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  • Yang, Fang & Zhang, Dingzhong & Sun, Chuanwang, 2016. "China׳s regional balanced development based on the investment in power grid infrastructure," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 1549-1557.
    • Handle: RePEc:eee:rensus:v:53:y:2016:i:c:p:1549-1557
    DOI: 10.1016/j.rser.2015.09.066
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    Cited by:

    1. Schreiner, Lena & Madlener, Reinhard, 2022. "Investing in power grid infrastructure as a flexibility option: A DSGE assessment for Germany," Energy Economics, Elsevier, vol. 107(C).
    2. Ming, Zeng & Lilin, Peng & Qiannan, Fan & Yingjie, Zhang, 2016. "Trans-regional electricity transmission in China: Status, issues and strategies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 66(C), pages 572-583.
    3. Sun, Chuanwang & Zhu, Xiting & Meng, Xiaochun, 2016. "Post-Fukushima public acceptance on resuming the nuclear power program in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 62(C), pages 685-694.
    4. Yi, Bo-Wen & Xu, Jin-Hua & Fan, Ying, 2016. "Inter-regional power grid planning up to 2030 in China considering renewable energy development and regional pollutant control: A multi-region bottom-up optimization model," Applied Energy, Elsevier, vol. 184(C), pages 641-658.
    5. Dong, Xiao-Ying & Hao, Yu, 2018. "Would income inequality affect electricity consumption? Evidence from China," Energy, Elsevier, vol. 142(C), pages 215-227.

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