Environmental Regulation BT - China’s Electricity Sector

Abstract

The power sector remains a major source of atmospheric pollution within China. In this chapter, the environmental regulation of the power sector over the last 30 years is summarised, along with the effect on power generation, demand and the grid. Five environmental regulations (replacing smaller units with big ones, ultra-low discharge of coal power, tradable green certificates, carbon markets, and taxation of energy and carbon) are picked out for special attention in light of their significant impacts on the sector. The overall effect of regulations is uncertain because of uncertainties in new energy investment, coal power emission reduction controls and business management in the power sector.