Implementing China's national energy conservation policies at state-owned electric power generation plants
China's 11th Five-Year Guideline identified energy conservation as one of the country's fundamental policies and established a mandatory target: 20% reduction in national average energy intensity by 2010. Despite the various policies, laws, and administrative reforms to support energy conservation, China fell behind schedule for meeting its conservation targets in 2006 and 2007. Using a combination of available literature and an interview-based case study, this paper examines the implementation of energy conservation and investigates impediments to achieving China's conservation goal in the electric power generation sector. Three key impediments are detailed: (1) municipal governments' incentives to overlook conservation-related central directives primarily because of budget pressures linked to financial decentralization, (2) procedural obstacles in the form of time required to obtain project approvals for high-efficiency power generation units, and (3) financial obstacles making it difficult for power generation enterprises to raise capital for energy conservation projects. An interview-based case study of a state-owned coal-fired electric power generation company demonstrates the influence of the aforementioned obstacles. While procedural obstacles are notable, they can be managed. However, electricity pricing reforms and/or stronger subsidy programs will be needed to address the financial obstacles facing Chinese power generation companies.
References listed on IDEAS
Please report citation or reference errors to , or , if you are the registered author of the cited work, log in to your RePEc Author Service profile, click on "citations" and make appropriate adjustments.:
- Jin, Jing & Zou, Heng-fu, 2005.
"Fiscal decentralization, revenue and expenditure assignments, and growth in China,"
Journal of Asian Economics,
Elsevier, vol. 16(6), pages 1047-1064, December.
- Jing Jin & Heng-fu Zou, 2004. "Fiscal decentralization, revenue and expenditure assignments, and growth in China," CEMA Working Papers 169, China Economics and Management Academy, Central University of Finance and Economics.
- Jing Jin & Heng-fu Zou, 2005. "Fiscal decentralization, revenue and expenditure assignments, and growth in China," CEMA Working Papers 212, China Economics and Management Academy, Central University of Finance and Economics.
- Hang, Leiming & Tu, Meizeng, 2007. "The impacts of energy prices on energy intensity: Evidence from China," Energy Policy, Elsevier, vol. 35(5), pages 2978-2988, May.
- Herschler, Stephen B., 1995. "The 1994 tax reforms: The center strikes back," China Economic Review, Elsevier, vol. 6(2), pages 239-245.
- Wu, Yanrui, 2003. "Deregulation and growth in China's energy sector: a review of recent development," Energy Policy, Elsevier, vol. 31(13), pages 1417-1425, October.
- Ma, Chunbo & He, Lining, 2008. "From state monopoly to renewable portfolio: Restructuring China's electric utility," Energy Policy, Elsevier, vol. 36(5), pages 1697-1711, May.
- Fisher-Vanden, Karen, 2009. "Energy in China: Understanding Past Trends and Future Directions," International Review of Environmental and Resource Economics, now publishers, vol. 3(3), pages 217-244, December. Full references (including those not matched with items on IDEAS)
When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:38:y:2010:i:10:p:6293-6306. See general information about how to correct material in RePEc.
For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: (Dana Niculescu)
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 references are entirely missing, you can add them using this form.
If the full references list an item that is present in RePEc, but the system did not link 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 profile, as there may be some citations waiting for confirmation.
Please note that corrections may take a couple of weeks to filter through the various RePEc services.