The Future of Natural Gas in China: Effects of Pricing Reform and Climate Policy
China is currently attempting to reduce greenhouse gas emissions and increase natural gas consumption as a part of broader national strategies to reduce the air pollution impacts of the nation’s energy system. To assess the scenarios of natural gas development up to 2050, we employ a global energy-e...
| Main Authors: | , |
|---|---|
| Format: | Working Paper |
| Language: | en_US |
| Published: |
MIT Joint Program on the Science and Policy of Global Change
2016
|
| Online Access: | http://hdl.handle.net/1721.1/103778 |
| _version_ | 1811080365470646272 |
|---|---|
| author | Zhang, Danwei Paltsev, Sergey |
| author_facet | Zhang, Danwei Paltsev, Sergey |
| author_sort | Zhang, Danwei |
| collection | MIT |
| description | China is currently attempting to reduce greenhouse gas emissions and increase natural gas consumption as a part of broader national strategies to reduce the air pollution impacts of the nation’s energy system. To assess the scenarios of natural gas development up to 2050, we employ a global energy-economic model—the MIT Economic Projection and Policy Analysis (EPPA) model. The results show that a cap-and-trade policy will enable China to achieve its climate mitigation goals, but will also reduce natural gas consumption. An integrated policy that uses a part of the carbon revenue obtained from the cap-and-trade system to subsidize natural gas use promotes natural gas consumption, resulting in a further reduction in coal use relative to the cap-and-trade policy case. The integrated policy has a very moderate welfare cost; however, it reduces air pollution and allows China to achieve both the climate objective and the natural gas promotion objective. |
| first_indexed | 2024-09-23T11:30:14Z |
| format | Working Paper |
| id | mit-1721.1/103778 |
| institution | Massachusetts Institute of Technology |
| language | en_US |
| last_indexed | 2024-09-23T11:30:14Z |
| publishDate | 2016 |
| publisher | MIT Joint Program on the Science and Policy of Global Change |
| record_format | dspace |
| spelling | mit-1721.1/1037782019-04-12T12:17:32Z The Future of Natural Gas in China: Effects of Pricing Reform and Climate Policy Zhang, Danwei Paltsev, Sergey China is currently attempting to reduce greenhouse gas emissions and increase natural gas consumption as a part of broader national strategies to reduce the air pollution impacts of the nation’s energy system. To assess the scenarios of natural gas development up to 2050, we employ a global energy-economic model—the MIT Economic Projection and Policy Analysis (EPPA) model. The results show that a cap-and-trade policy will enable China to achieve its climate mitigation goals, but will also reduce natural gas consumption. An integrated policy that uses a part of the carbon revenue obtained from the cap-and-trade system to subsidize natural gas use promotes natural gas consumption, resulting in a further reduction in coal use relative to the cap-and-trade policy case. The integrated policy has a very moderate welfare cost; however, it reduces air pollution and allows China to achieve both the climate objective and the natural gas promotion objective. The Joint Program on the Science and Policy of Global Change is funded by a consortium of Federal awards and industrial and foundation sponsors (for the complete list see: http://globalchange.mit.edu/sponsors/all). Support from the U.S. Federal Government in the past three years was received from the U.S. Department of Energy, Office of Science under grants DE-FG02-94ER61937, DE-SC0007114, DE-FG02-08ER64597; the U.S. Department of Energy, Oak Ridge National Laboratory under subcontract 4000109855; the U.S. Department of Agriculture under grant 58-6000-2-0099; the U.S. Energy Information Administration under grant DE-EI0001908; the U.S. Environmental Protection Agency under grants XA-83505101-0, XA-83600001-1, and RD-83427901-0; the U.S. Federal Aviation Administration under agreement 09-C-NE-MIT; the U.S. National Aeronautics and Space Administration under grants NNX13AH91A, NNX11AN72G, and sub-awards 4103-60255 and 4103-30368; the U.S. National Renewable Energy Laboratory under grant UGA-0-41029-15; the U.S. National Science Foundation under grants OCE-1434007, IIS-1028163, EF-1137306, AGS-1216707, ARC-1203526, AGS-1339264 , AGS-0944121, and sub-awards UTA08.950 and 1211086Z1; the U.S. Department of Transportation under grant DTRT57-10-C-10015; and the U.S. Department of Commerce, National Oceanic and Atmospheric Administration under grant NA13OAR4310084. 2016-07-20T17:40:42Z 2016-07-20T17:40:42Z 2016-03 Working Paper http://hdl.handle.net/1721.1/103778 Report 294 en_US MIT Joint Program Report Series;294 application/pdf MIT Joint Program on the Science and Policy of Global Change |
| spellingShingle | Zhang, Danwei Paltsev, Sergey The Future of Natural Gas in China: Effects of Pricing Reform and Climate Policy |
| title | The Future of Natural Gas in China: Effects of Pricing Reform and Climate Policy |
| title_full | The Future of Natural Gas in China: Effects of Pricing Reform and Climate Policy |
| title_fullStr | The Future of Natural Gas in China: Effects of Pricing Reform and Climate Policy |
| title_full_unstemmed | The Future of Natural Gas in China: Effects of Pricing Reform and Climate Policy |
| title_short | The Future of Natural Gas in China: Effects of Pricing Reform and Climate Policy |
| title_sort | future of natural gas in china effects of pricing reform and climate policy |
| url | http://hdl.handle.net/1721.1/103778 |
| work_keys_str_mv | AT zhangdanwei thefutureofnaturalgasinchinaeffectsofpricingreformandclimatepolicy AT paltsevsergey thefutureofnaturalgasinchinaeffectsofpricingreformandclimatepolicy AT zhangdanwei futureofnaturalgasinchinaeffectsofpricingreformandclimatepolicy AT paltsevsergey futureofnaturalgasinchinaeffectsofpricingreformandclimatepolicy |