Energy-intensive manufacturing sectors in China: policy priorities for achieving climate mitigation and energy conservation targets

ABSTRACT

In this study, a long-range energy alternative planning (LEAP) model was built to evaluate the relative priority of three kinds of policies expected to be implemented for the energy-intensive manufacturing sectors (EIMS) in China to achieve CO₂ mitigation and energy conservation targets. These policies encourage (1) the use of more electricity instead of coal; (2) the continuous improvement of energy efficiency; and (3) a shift to other less energy-demanding sectors. The results indicate that the policy of shifting economic activity from the EIMS to other sectors is most helpful for China to achieve its targets of mitigating CO₂ emissions and conserving energy. Encouraging the EIMS to use more electricity can help China to achieve a higher proportion of non-fossil-fuel based energy in its overall primary energy consumption. No single policy will allow China to achieve all the targets, emphasizing the need for an integrated policy design that combines all types of policies.

Key policy insights

• The policy of encouraging a shift to less energy intensive industries should receive the highest priority in aiming to peak China's energy-related CO₂ emissions as early as possible, and lower overall CO₂ emissions, coal consumption and primary energy consumption in the long run.

• Encouraging a shift to electricity should go hand-in-hand with greater energy efficiency, otherwise such a policy cannot help China significantly reduce energy-related CO₂ emissions.

• Encouraging the EIMS to use more electricity should receive the highest priority in helping China achieve a higher proportion of non-fossil-fuel based energy in its overall primary energy consumption.

KEYWORDS:

• energy-intensive industries
• CO₂ mitigation
• electricity substitution
• energy efficiency
• LEAP

Disclosure statement

No potential conflict of interest was reported by the authors.

ORCID

Brian Ó Gallachóir http://orcid.org/0000-0002-6608-5997

Hua Cai http://orcid.org/0000-0002-5895-1664

Additional information

Funding

This work was supported by the National Natural Science Foundation of China grant number [no.71401054, 71403030, 71802025]; Beijing Municipal Social Science Foundation under Grant [no.18GLB025]; Beijing Municipal College Talent Teachers Team Cultivation Program During 13th Five Years Period and Qin Xin Talents Cultivation Program of Beijing Information Science & Technology University under Grant [no.QXTCPB201703]; Beijing Municipal College Talent Teachers Team Cultivation Program During 13th Five Years Period under Grant [no.CIT&TCD201804056].