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Institutional constraints to China's low carbon transition: A case study of China's coal-to-gas program

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  • Luo, Guoliang
  • Liu, Shanshan
  • Yan, Xiaohui
  • Guo, Yiwei

Abstract

In the winter of 2017, Beijing-Tianjin-Hebei (Jing-Jin-Ji) and the peripheral provinces carried out the Coal-to-Gas Program. Meanwhile, the “shortage of natural gas (gas shortage)” became worse. The paper builds an framework to analyze the reason for China's gas shortage from the aspect of the natural gas industrial chain. The oligopoly of the upper, middle and lower stages from exploration, exploitation to pipeline networking, storage and transportation, and distribution of the natural gas industry leads to the absence of the price transmission and incentive system in the industry, severely hindering the improvement of the supply and emergency response capacity of natural gas. The oligopoly of upstream mineral rights leads to insufficient supply of gas storage in China. Lack of social capital lead to a lack of competition for gas supplies. The development of natural gas lacks spot market, futures market and effective regulatory system, Reform of the gas market still has a long way to go in China.

Suggested Citation

  • Luo, Guoliang & Liu, Shanshan & Yan, Xiaohui & Guo, Yiwei, 2021. "Institutional constraints to China's low carbon transition: A case study of China's coal-to-gas program," Structural Change and Economic Dynamics, Elsevier, vol. 57(C), pages 121-135.
    • Handle: RePEc:eee:streco:v:57:y:2021:i:c:p:121-135
    DOI: 10.1016/j.strueco.2021.01.005
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    Cited by:

    1. Li, Jianglong & Ho, Mun Sing & Xie, Chunping & Stern, Nicholas, 2022. "China's flexibility challenge in achieving carbon neutrality by 2060," Renewable and Sustainable Energy Reviews, Elsevier, vol. 158(C).
    2. Xin Guan & Xiangyi Lu & Yang Wen, 2022. "Is China’s Natural Gas Consumption Converging? Empirical Research Based on Spatial Econometrics," Energies, MDPI, vol. 15(24), pages 1-13, December.

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