How diversified fuel-fired power enterprises keep their competitive advantages to reach sustainable development

Abstract

To decrease carbon emissions, there are three major methods, including developing renewable and clean energy, reducing energy intensity, and decreasing economic growth. However, China has set its economic growth at an annual rate of above 7.2% between 2000 and 2020. Therefore, to achieve the goal of carbon reduction, China will rely more on the development of renewable and clean energy. Conventional fuel-fired power companies should synthesize economic, political, environmental, and technological factors and implement the most profitable renewable and clean energy projects. To gain a sustainable competitive advantage, diversified projects with persistent profits can theoretically change the industrial structure and the competitive rules. This article studies the relationship between diversification and economic performance. The results show that diversification in conventional fuel-fired power companies is positively correlated with economic performance. Based on the results, this article proposes a diversification development direction and suggestions. © 2018 American Institute of Chemical Engineers Environ Prog, 38: 137–142, 2019.