Industrial Water Pollution Discharge Taxes in China: A Multi-Sector Dynamic Analysis.” Water, 10, 12, Pp. 1742. Publisher's VersionAbstract. 2018. “
We explore how water pollution policy reforms in China could reduce industrial wastewater pollution with minimum adverse impact on GDP growth. We use a multi-sector dynamic Computable General Equilibrium (CGE) model, jointly developed by Harvard University and Tsinghua University, to examine the long-term impact of pollution taxes. A firm-level dataset of wastewater and COD discharge is compiled and aggregated to provide COD-intensities for 22 industrial sectors. We simulated the impact of 4 different sets of Pigovian taxes on the output of these industrial sectors, where the tax rate depends on the COD-output intensity. In the baseline low rate of COD tax, COD discharge is projected to rise from 36 million tons in 2018 to 48 million in 2030, while GDP grows at 6.9% per year. We find that raising the COD tax by 8 times will lower COD discharge by 1.6% by 2030, while a high 20-times tax will cut it by 4.0%. The most COD-intensive sectors—textile goods, apparel, and food products—have the biggest reduction in output and emissions. The additional tax revenue is recycled by cutting existing taxes, including taxes on profits, leading to higher investment. This shift from consumption to investment leads to a slightly higher GDP over time.
Power system capacity expansion under higher penetration of renewables considering flexibility constraints and low carbon policies.” IEEE Transactions on Power Systems, 33, 6, Pp. 6240-6253. Publisher's VersionAbstract. 2018. “
Deploying high penetration of variable renewables represents a critical pathway for deep decarbonizing the power sector. The conflict between their temporal variability and limited system flexibility has been largely ignored currently at planning stage. Here we present a novel capacity expansion model optimizing investment decisions and full-year, hourly power balances simultaneously, with considerations of storage technologies and policy constraints, such as carbon tax and renewable portfolio standards (RPS). Based on a computational efficient modeling formulation, all flexibility constrains (ramping, reserve, minimum output, minimal online/offline time) for the 8760-hour duration are incorporated. The proposed model is applied to the northwestern grid of China to examine the optimal composition and distribution of power investments with a wide range of renewable targets. Results indicate that the cost can increase moderately towards 45% of RPS, when properly designing the generation portfolio: prioritizing wind investments, distributing renewable investments more evenly and deploying more flexible mid-size coal and gas units. Reaching higher penetrations of renewables is expensive and the reductions of storage costs are critically important for an affordable low-carbon future. RPS or carbon taxes to reach a same target of emission reduction in China will result in similar overall costs but different generation mixes.
2018 Apr 27
Environmental fiscal reform and the double dividend: evidence from a dynamic general equilibrium model.” Sustainability, 10, 2. Publisher's VersionAbstract. 2018. “
An environmental fiscal reform (EFR) represents a transition of a taxation system toward one based in environmental taxation, rather than on taxation of capital, labor, or consumption. It differs from an environmental tax reform (ETR) in that an EFR also includes a reform of subsidies which counteract environmental policy. This research details different ways in which an EFR is not only possible but also a good option that provides economic and environmental benefits. We have developed a detailed dynamic CGE model examining 101 industries and commodities in Spain, with an energy and an environmental extension comprising 31 pollutant emissions, in order to simulate the economic and environmental effects of an EFR. The reform focuses on 39 industries related to the energy, water, transport and waste sectors. We simulate an increase in taxes and a reduction on subsidies for these industries and at the same time we use new revenues to reduce labor, capital and consumption taxes. All revenue recycling options provide both economic and environmental benefits, suggesting that the “double dividend” hypothesis can be achieved. After three to four years after implementing an EFR, GDP is higher than the base case, hydrocarbons consumption declines and all analyzed pollutants show a reduction.
Non-CO2 greenhouse gas emissions in China 2012: Inventory and supply chain analysis.” Earth's Future, 6, 1. Publisher's VersionAbstract. 2018. “
Reliable inventory information is critical in informing emission mitigation efforts. Using the latest officially released emission data, which is production based, we take a consumption perspective to estimate the non-CO2 greenhouse gas (GHG) emissions for China in 2012. The non-CO2 GHG emissions, which cover CH4, N2O, HFCs, PFCs, and SF6, amounted to 2003.0 Mt. CO2-eq (including 1871.9 Mt. CO2-eq from economic activities), much larger than the total CO2 emissions in some developed countries. Urban consumption (30.1%), capital formation (28.2%), and exports (20.6%) derived approximately four fifths of the total embodied emissions in final demand. Furthermore, the results from structural path analysis help identify critical embodied emission paths and key economic sectors in supply chains for mitigating non-CO2 GHG emissions in Chinese economic systems. The top 20 paths were responsible for half of the national total embodied emissions. Several industrial sectors such as Construction, Production and Supply of Electricity and Steam, Manufacture of Food and Tobacco and Manufacture of Chemicals, and Chemical Products played as the important transmission channels. Examining both production- and consumption-based non-CO2 GHG emissions will enrich our understanding of the influences of industrial positions, final consumption demands, and trades on national non-CO2 GHG emissions by considering the comprehensive abatement potentials in the supply chains.
2018 Apr 25
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2018 Jan 31
Tracing natural resource uses via China's supply chains.” Journal of Cleaner Production, 196, Pp. 880-888. Publisher's VersionAbstract. 2018. “
This paper makes an in-depth analysis on demand-driven natural resource requirements in China via the methods of thermodynamic input-output analysis and structural path analysis, in order to reveal the connections between the country's rapid economic development and its intensive use of natural resources. The main natural resources investigated include crops, forestry, rangeland, aquatic products, coal, crude oil & natural gas, ferrous metal ores, nonferrous metal ores, nonmetallic minerals and other primary energy, and exergy is adopted as a common metric for the resource accounting. In 2012, the total domestic resource exergy input into Chinese economic system amounted to 130.1 EJ, of which 44.6% was induced by investment demands. The embodied resource use (ERU) in China's exports was equivalent to over one fifth of its domestic resource supply. The two integrative sectors of Manufacturing and Construction accounted for 44.1% and 28.7% of the national total ERU, respectively. We identified critical supply chain paths starting from resource extraction to final demand, as well as key industrial sectors in driving the extraction, transmission and final use of embodied resources. The top 50 paths were responsible for 30.4 EJ of the ERU. The identification of resource supply chains from a systemic perspective is of great importance when resource and environmental policies are to be applied to concrete industrial sectors and other economic agents. Integrated approaches that take account of consumption-based resource indicators should be developed for resource conservation and cleaner production, particularly for the economic system with a complex supply network.