Modeling Interprovincial Cooperative Carbon Reduction in China: An Electricity Generation Perspective

Abstract

As the world faces great challenges from climate change, carbon reduction has become China’s basic national policy. However, as the main model for carbon reduction in China, the non-cooperative carbon reduction model (NCCRM) is a simple regulation mode, which is not beneficial for optimization of electricity generation capacity structure and cannot effectively motivate carbon reduction at the provincial level. Therefore, we propose an interprovincial cooperative carbon reduction model (CCRM) from the perspective of electricity generation, which provides a mechanism integrating two fundamental principles of efficiency and fairness. The CCRM consists of two parts: (1) an optimal model of carbon reduction with the object of minimizing the carbon emission of the cooperation union to determine the optimal annual electricity generation for each participating province and (2) a model that distributes the economic benefits of the cooperation among the provinces in the cooperation based on the Shapley value method. We applied the CCRM to the case of an interprovincial union of Shanghai, Sichuan, Shanxi, and Gansu in China. The results, based on the data from 2014 to 2017, show that cooperation can significantly reduce the carbon emission of the union by 425.78 × 108 kg, 11.06%; meanwhile, Shanghai, Sichuan, Shanxi, and Gansu can, respectively, get 2.79 × 108, 11.11 × 108, 4.07 × 108, and 3.19 × 108 CNY of extra benefits from carbon reduction. To test the impact of different parameter values on the results of the CCRM, a sensitivity analysis was conducted. Some policy recommendations are proposed to promote the implementation of the CCRM.

Estimating Peak Shaving Capacity Demand of Gas-Fired Power in China From a Regional Coordination Perspective

“…In addition to cost and revenue, there are articles using Shapley value to allocate air pollutants or CO 2 emissions. These articles cover the following issues: allocating carbon emissions to four key influencing factors of carbon emissions (e.g., population and economic output) to obtain the influence degree of each factor on carbon emissions (Yu et al, 2012); allocating carbon emission allowances in eight regions of China (Zhang et al, 2014;Chang et al, 2016); allocating CO 2 emissions from refineries across all products (Pierru, 2007); and analyzing the inter-region cooperation in carbon emission reduction problem in China (Zeng et al, 2021).…”

Factors Influencing Intergovernmental Cooperation on Emission Reduction in Chengdu-Chongqing Urban Agglomeration: An Evolutionary Game Theory Perspective

“…At the same time, the indivisibility of the regional environment (negative externality) and the sharing of governance benefits (positive externality) necessitate breaking the original “fragmented” governance pattern of local governments based on traditional administrative jurisdictions. Given the characteristics of China’s social and economic practices, reducing carbon dioxide emissions through regional alliance cooperation in emission reduction is clearly preferable and is also more consistent with the future development trend [ 6 ].…”