The regulatory framework and sustainable development of China's electricity sector

Abstract

Both supply- and demand-oriented solutions are important in cleaning up the electricity sector. However, their successful deployment calls for the removal of various barriers. This paper looks at China's electricity industry, one of the world's largest emitters of greenhouse gases, by relating the regulatory framework to the environmental dimension of sustainable electricity development. It develops an analytical framework by drawing upon the literature on the deployment of supply- and demand-side solutions, regulatory governance, and environmental policy integration. The paper finds that, in China's electricity sector, environmental considerations are subordinate to economic and development goals in policymaking and enforcement. Under the current regulatory framework, regulatory policies/instruments are not conducive to removing barriers to the effective deployment of the solutions.