IDEAS home Printed from https://ideas.repec.org/a/eee/resene/v66y2021ics0928765521000440.html

Analysis of the optimal spatial distribution of natural gas under ‘transition from coal to gas’ in China

Author

Listed:
  • Lin, Jing
  • Mou, Dunguo

Abstract

China has been attempting to realise green sustainable economic development. Thus, China has proposed and begun to implement the ‘switching from coal to gas’ policy to realise the energy structure transition but neglected to consider seasonal natural gas demand fluctuations, gas supply shortages, the backward gas transportation and storage infrastructure. This paper constructs a model of China’s natural gas distribution system by incorporating these four factors: ① supply factors including domestic natural gas fields, liquid natural gas receiving stations, internationally piped gas sources, ② demand factors including domestic regional demands, ③ real natural gas transportation pipeline systems in the country, and ④ the pricing mechanism of natural gas. Optimal spatial natural gas distribution with maximum social welfare under the three conditions are simulated, respectively: the ① fixed price system, ② market pricing mechanism, and ③ seasonal fluctuations. The simulation results indicate substantial changes would occur in China’s natural gas system during the switch from coal to gas, and the natural gas infrastructure requires further improvement. This paper also provides references for the natural gas storage facility location selection in China.

Suggested Citation

  • Lin, Jing & Mou, Dunguo, 2021. "Analysis of the optimal spatial distribution of natural gas under ‘transition from coal to gas’ in China," Resource and Energy Economics, Elsevier, vol. 66(C).
    • Handle: RePEc:eee:resene:v:66:y:2021:i:c:s0928765521000440
    DOI: 10.1016/j.reseneeco.2021.101259
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0928765521000440
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.reseneeco.2021.101259?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    References listed on IDEAS

    as
    1. Yu, Weichao & Song, Shangfei & Li, Yichen & Min, Yuan & Huang, Weihe & Wen, Kai & Gong, Jing, 2018. "Gas supply reliability assessment of natural gas transmission pipeline systems," Energy, Elsevier, vol. 162(C), pages 853-870.
    2. Geng, Jiang-Bo & Ji, Qiang & Fan, Ying, 2014. "A dynamic analysis on global natural gas trade network," Applied Energy, Elsevier, vol. 132(C), pages 23-33.
    3. Onat, Nevzat & Bayar, Haydar, 2010. "The sustainability indicators of power production systems," Renewable and Sustainable Energy Reviews, Elsevier, vol. 14(9), pages 3108-3115, December.
    4. Chen, Zhihua & An, Haizhong & An, Feng & Guan, Qing & Hao, Xiaoqing, 2018. "Structural risk evaluation of global gas trade by a network-based dynamics simulation model," Energy, Elsevier, vol. 159(C), pages 457-471.
    5. Mou, Dunguo & He, Xiaoping, 2019. "Developing large-scale energy storage to alleviate a low-carbon energy bubble," Energy Policy, Elsevier, vol. 132(C), pages 62-74.
    6. Felix, Bastian Joachim & Weber, Christoph, 2012. "Gas storage valuation applying numerically constructed recombining trees," European Journal of Operational Research, Elsevier, vol. 216(1), pages 178-187.
    7. Hulshof, Daan & van der Maat, Jan-Pieter & Mulder, Machiel, 2016. "Market fundamentals, competition and natural-gas prices," Energy Policy, Elsevier, vol. 94(C), pages 480-491.
    8. Misund, Bård & Oglend, Atle, 2016. "Supply and demand determinants of natural gas price volatility in the U.K.: A vector autoregression approach," Energy, Elsevier, vol. 111(C), pages 178-189.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Kang-Min Kim & Gyu-Bo Kim & Byoung-Hwa Lee & Yoon-Ho Bae & Chung-Hwan Jeon, 2021. "CFD Evaluation of Heat Transfer and NOx Emissions When Converting a Tangentially Fired Coal Boiler to Use Methane," Energies, MDPI, vol. 15(1), pages 1-16, December.
    2. Xin Xu & Yuming Shen & Hanchu Liu, 2022. "What Cause Large Spatiotemporal Differences in Carbon Intensity of Energy-Intensive Industries in China? Evidence from Provincial Data during 2000–2019," IJERPH, MDPI, vol. 19(16), pages 1-18, August.
    3. Wen, Kai & Lu, Yangfan & Lu, Meitong & Zhang, Wenwei & Zhu, Ming & Qiao, Dan & Meng, Fanpeng & Zhang, Jing & Gong, Jing & Hong, Bingyuan, 2022. "Multi-period optimal infrastructure planning of natural gas pipeline network system integrating flowrate allocation," Energy, Elsevier, vol. 257(C).
    4. Xie, Lunyu & Wei, Chu & Zheng, Xinye & Liu, Yang & Wu, Wanyi & Feng, Ziru, 2023. "Who benefits from household energy transition? A cost-benefit analysis based on household survey data in China," China Economic Review, Elsevier, vol. 77(C).
    5. Zhu, Yuxin & Liu, Ziming & Hermann, Daniel, 2025. "How an energy policy prevents child migration: A natural experiment of the coal-to-gas policy in China," Energy Policy, Elsevier, vol. 198(C).

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Theodosios Perifanis & Athanasios Dagoumas, 2020. "Price and Volatility Spillovers between Crude Oil and Natural Gas markets in Europe and Japan-Korea," International Journal of Energy Economics and Policy, Econjournals, vol. 10(5), pages 432-446.
    2. Chen, Zhihua & An, Haizhong & An, Feng & Guan, Qing & Hao, Xiaoqing, 2018. "Structural risk evaluation of global gas trade by a network-based dynamics simulation model," Energy, Elsevier, vol. 159(C), pages 457-471.
    3. Su, Chi-Wei & Yuan, Xi & Umar, Muhammad & Chang, Tsangyao, 2022. "Dynamic price linkage of energies in transformation: Evidence from quantile connectedness," Resources Policy, Elsevier, vol. 78(C).
    4. Zeyu Hou & Xiaoyu Niu & Zhaoyuan Yu & Wei Chen, 2023. "Spatiotemporal Evolution and Market Dynamics of the International Liquefied Natural Gas Trade: A Multilevel Network Analysis," Energies, MDPI, vol. 17(1), pages 1-16, December.
    5. Hassan Hamie & Anis Hoayek & Hans Auer, 2020. "Modeling Post-Liberalized European Gas Market Concentration—A Game Theory Perspective," Forecasting, MDPI, vol. 3(1), pages 1-16, December.
    6. Guo, Kun & Kang, Yuxin & Ma, Dandan & Lei, Lei, 2024. "How do climate risks impact the contagion in China's energy market?," Energy Economics, Elsevier, vol. 133(C).
    7. Sutrisno, Aziiz & Nomaler, Ӧnder & Alkemade, Floor, 2021. "Has the global expansion of energy markets truly improved energy security?," Energy Policy, Elsevier, vol. 148(PA).
    8. Gong, Chengzhu & Gong, Nianjiao & Qi, Rui & Yu, Shiwei, 2020. "Assessment of natural gas supply security in Asia Pacific: Composite indicators with compromise Benefit-of-the-Doubt weights," Resources Policy, Elsevier, vol. 67(C).
    9. Wenlong Yang & Wentian Shi & Weidong Guo, 2026. "Evolution and proximity analysis of oil and natural gas trade networks among the Belt and Road Initiative countries," Humanities and Social Sciences Communications, Palgrave Macmillan, vol. 13(1), pages 1-18, December.
    10. Jianxiong Xiao & Chao Xiong & Wei Deng & Guihai Yu, 2022. "Evolution Features and Robustness of Global Photovoltaic Trade Network," Sustainability, MDPI, vol. 14(21), pages 1-18, October.
    11. Wang, Xingxing & Li, Huajiao & Zhu, Depeng & Zhong, Weiqiong & Xing, Wanli & Wang, Anjian, 2021. "Research on global natural graphite trade risk countermeasures based on the maximum entropy principle," Resources Policy, Elsevier, vol. 74(C).
    12. Wang, Tiantian & Zhang, Dayong & Ji, Qiang & Shi, Xunpeng, 2020. "Market reforms and determinants of import natural gas prices in China," Energy, Elsevier, vol. 196(C).
    13. Wang, Wenya & Li, Zhenfu & Cheng, Xin, 2019. "Evolution of the global coal trade network: A complex network analysis," Resources Policy, Elsevier, vol. 62(C), pages 496-506.
    14. Ibrahim Abada & Andreas Ehrenmann, 2026. "When Market Incompleteness Is Preferable to Market Power: Insights from Power Markets," Operations Research, INFORMS, vol. 74(2), pages 573-595, March.
    15. Zheng, Bobo & Xu, Jiuping & Ni, Ting & Li, Meihui, 2015. "Geothermal energy utilization trends from a technological paradigm perspective," Renewable Energy, Elsevier, vol. 77(C), pages 430-441.
    16. Zhu, Jianhua & Peng, Yan & Gong, Zhuping & Sun, Yanming & Lai, Chaoan & Wang, Qing & Zhu, Xiaojun & Gan, Zhongxue, 2019. "Dynamic analysis of SNG and PNG supply: The stability and robustness view #," Energy, Elsevier, vol. 185(C), pages 717-729.
    17. Zhang, Ruixue & Tang, Yuyan & Li, Yongli & Zhang, Yuanxin, 2025. "What motivates the collaborative innovation relationship in infrastructure projects from dynamic network perspective," Technovation, Elsevier, vol. 148(C).
    18. L. Hay & A. H. B. Duffy & R. I. Whitfield, 2017. "The S‐Cycle Performance Matrix: Supporting Comprehensive Sustainability Performance Evaluation of Technical Systems," Systems Engineering, John Wiley & Sons, vol. 20(1), pages 45-70, January.
    19. Kong, Zhaoyang & Lu, Xi & Jiang, Qingzhe & Dong, Xiucheng & Liu, Guixian & Elbot, Noah & Zhang, Zhonghua & Chen, Shi, 2019. "Assessment of import risks for natural gas and its implication for optimal importing strategies: A case study of China," Energy Policy, Elsevier, vol. 127(C), pages 11-18.
    20. Liang, Chao & Xia, Zhenglan & Lai, Xiaodong & Wang, Lu, 2022. "Natural gas volatility prediction: Fresh evidence from extreme weather and extended GARCH-MIDAS-ES model," Energy Economics, Elsevier, vol. 116(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:resene:v:66:y:2021:i:c:s0928765521000440. See general information about how to correct material in RePEc.

    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 CitEc recognized a bibliographic reference but did not link an item in RePEc 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 RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/inca/505569 .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.