IDEAS home Printed from https://ideas.repec.org/a/eee/appene/v185y2017ip1p671-686.html
   My bibliography  Save this article

An estimation of the effect of carbon pricing for CO2 mitigation in China’s cement industry

Author

Listed:
  • Liu, Xianbing
  • Fan, Yongbin
  • Wang, Can

Abstract

This study estimates the effect of carbon pricing for CO2 mitigation in China’s cement industry. The statistics and prediction show that cement production initially experienced accelerated growth and is now expected to plateau out over the next few years. The energy saving and carbon mitigation technologies considered in this estimation are at different adoption stages. Full technology diffusion is expected within 10–20years, and the remaining technology mitigation potential stands at about 8.8% by 2025 and 10.2% by 2030. Nevertheless, attaching a price to carbon would have a limited effect. Reductions of 9.9 and 12.9 Mt-CO2 might have been realised in 2015 under respective prices of 60 and 100Yuan/t-CO2, compared to a non-pricing scenario. The reduction attributed to carbon pricing would be around 4.9 Mt-CO2 in 2020 at both price levels, and around 70% of the mitigation may be at a marginal cost of 50Yuan/t-CO2 by 2020. The marginal cost for nearly 90% of the policy mitigation would be below 100Yuan/t-CO2 by 2030. This paper confirms the effectiveness of a command-and-control approach so far for energy saving in China’s cement industry and advises early introduction of a carbon pricing regime with consideration of policy interactions.

Suggested Citation

  • Liu, Xianbing & Fan, Yongbin & Wang, Can, 2017. "An estimation of the effect of carbon pricing for CO2 mitigation in China’s cement industry," Applied Energy, Elsevier, vol. 185(P1), pages 671-686.
    • Handle: RePEc:eee:appene:v:185:y:2017:i:p1:p:671-686
    DOI: 10.1016/j.apenergy.2016.10.115
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0306261916315653
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.apenergy.2016.10.115?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Zhou, Wenji & Jiang, Di & Chen, Dingjiang & Griffy-Brown, Charla & Jin, Yong & Zhu, Bing, 2016. "Capturing CO2 from cement plants: A priority for reducing CO2 emissions in China," Energy, Elsevier, vol. 106(C), pages 464-474.
    2. Cai, Bofeng & Wang, Jinnan & He, Jie & Geng, Yong, 2016. "Evaluating CO2 emission performance in China’s cement industry: An enterprise perspective," Applied Energy, Elsevier, vol. 166(C), pages 191-200.
    3. Liu, Xianbing & Wang, Can & Zhang, Weishi & Suk, Sunhee & Sudo, Kinichi, 2013. "Company's affordability of increased energy costs due to climate policies: A survey by sector in China," Energy Economics, Elsevier, vol. 36(C), pages 419-430.
    4. Liu, Xianbing & Fan, Yongbin & Li, Chen, 2016. "Carbon pricing for low carbon technology diffusion: A survey analysis of China's cement industry," Energy, Elsevier, vol. 106(C), pages 73-86.
    5. Wen, Zongguo & Chen, Min & Meng, Fanxin, 2015. "Evaluation of energy saving potential in China's cement industry using the Asian-Pacific Integrated Model and the technology promotion policy analysis," Energy Policy, Elsevier, vol. 77(C), pages 227-237.
    6. Cai, Wenjia & Wang, Can & Chen, Jining & Wang, Ke & Zhang, Ying & Lu, Xuedu, 2008. "Comparison of CO2 emission scenarios and mitigation opportunities in China's five sectors in 2020," Energy Policy, Elsevier, vol. 36(3), pages 1181-1194, March.
    7. Li, Nan & Ma, Ding & Chen, Wenying, 2017. "Quantifying the impacts of decarbonisation in China’s cement sector: A perspective from an integrated assessment approach," Applied Energy, Elsevier, vol. 185(P2), pages 1840-1848.
    8. Rootzén, Johan & Johnsson, Filip, 2013. "Exploring the limits for CO2 emission abatement in the EU power and industry sectors—Awaiting a breakthrough," Energy Policy, Elsevier, vol. 59(C), pages 443-458.
    9. Kejun Jiang & Xing Zhuang & Ren Miao & Chenmin He, 2013. "China's role in attaining the global 2°C target," Climate Policy, Taylor & Francis Journals, vol. 13(sup01), pages 55-69, March.
    10. Hasanbeigi, Ali & Morrow, William & Sathaye, Jayant & Masanet, Eric & Xu, Tengfang, 2013. "A bottom-up model to estimate the energy efficiency improvement and CO2 emission reduction potentials in the Chinese iron and steel industry," Energy, Elsevier, vol. 50(C), pages 315-325.
    11. Mikulčić, Hrvoje & Vujanović, Milan & Duić, Neven, 2013. "Reducing the CO2 emissions in Croatian cement industry," Applied Energy, Elsevier, vol. 101(C), pages 41-48.
    12. Rootzén, Johan & Johnsson, Filip, 2015. "CO2 emissions abatement in the Nordic carbon-intensive industry – An end-game in sight?," Energy, Elsevier, vol. 80(C), pages 715-730.
    13. Hasanbeigi, Ali & Price, Lynn & Lu, Hongyou & Lan, Wang, 2010. "Analysis of energy-efficiency opportunities for the cement industry in Shandong Province, China: A case study of 16 cement plants," Energy, Elsevier, vol. 35(8), pages 3461-3473.
    14. Xu, Jin-Hua & Fleiter, Tobias & Fan, Ying & Eichhammer, Wolfgang, 2014. "CO2 emissions reduction potential in China’s cement industry compared to IEA’s Cement Technology Roadmap up to 2050," Applied Energy, Elsevier, vol. 130(C), pages 592-602.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Federico Galán-Valdivieso & Elena Villar-Rubio & María-Dolores Huete-Morales, 2018. "The erratic behaviour of the EU ETS on the path towards consolidation and price stability," International Environmental Agreements: Politics, Law and Economics, Springer, vol. 18(5), pages 689-706, October.
    2. Chen, Zhenling & Yuan, Xiao-Chen & Zhang, Xiaoling & Cao, Yunfei, 2020. "How will the Chinese national carbon emissions trading scheme work? The assessment of regional potential gains," Energy Policy, Elsevier, vol. 137(C).
    3. Guokui Wang & Xiaojia Guo & Jinxiu Fu & Qingyue Wei & Linlin Zhang, 2022. "Alternative pathways to CO2 reduction in Gansu province, China," Energy & Environment, , vol. 33(4), pages 809-825, June.
    4. Fang, Guochang & Tian, Lixin & Liu, Menghe & Fu, Min & Sun, Mei, 2018. "How to optimize the development of carbon trading in China—Enlightenment from evolution rules of the EU carbon price," Applied Energy, Elsevier, vol. 211(C), pages 1039-1049.
    5. Jiang, Jingjing & Ye, Bin & Liu, Junguo, 2019. "Peak of CO2 emissions in various sectors and provinces of China: Recent progress and avenues for further research," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 813-833.
    6. Song, Yazhi & Liu, Tiansen & Li, Yin & Zhu, Yue & Ye, Bin, 2022. "Paths and policy adjustments for improving carbon-market liquidity in China," Energy Economics, Elsevier, vol. 115(C).
    7. Bingxin Zeng & Jun Xie & Xiaobing Zhang & Yang Yu & Lei Zhu, 2020. "The impacts of emission trading scheme on China’s thermal power industry: A pre-evaluation from the micro level," Energy & Environment, , vol. 31(6), pages 1007-1030, September.
    8. Liping Ding & Fan Zhang & Jing Shuai, 2018. "How Do Chinese Residents Expect of Government Subsidies on Solar Photovoltaic Power Generation?—A Case of Wuhan, China," Energies, MDPI, vol. 11(1), pages 1-11, January.
    9. Zhou, Li & Duan, Maosheng & Yu, Yadong & Zhang, Xiliang, 2018. "Learning rates and cost reduction potential of indirect coal-to-liquid technology coupled with CO2 capture," Energy, Elsevier, vol. 165(PB), pages 21-32.
    10. Junxiao Wei & Kuang Cen & Yuanbo Geng, 2019. "Evaluation and mitigation of cement CO2 emissions: projection of emission scenarios toward 2030 in China and proposal of the roadmap to a low-carbon world by 2050," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 24(2), pages 301-328, February.
    11. Cui, Zheng & Shao, Wei & Chen, Zhaoyou & Cheng, Lin, 2017. "Mathematical model and numerical solutions for the coupled gas–solid heat transfer process in moving packed beds," Applied Energy, Elsevier, vol. 206(C), pages 1297-1308.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Wei & Gao, Shubin, 2018. "Prospective on energy related carbon emissions peak integrating optimized intelligent algorithm with dry process technique application for China's cement industry," Energy, Elsevier, vol. 165(PB), pages 33-54.
    2. Nayeah Kim & Yun Seop Hwang & Mun Ho Hwang, 2019. "New projection of GHG reduction potentials for Korea’s cement industry and comparison with Roadmap 2030," Energy & Environment, , vol. 30(3), pages 499-521, May.
    3. Liu, Xuewei & Yuan, Zengwei & Xu, Yuan & Jiang, Songyan, 2017. "Greening cement in China: A cost-effective roadmap," Applied Energy, Elsevier, vol. 189(C), pages 233-244.
    4. Junxiao Wei & Kuang Cen, 2019. "A preliminary calculation of cement carbon dioxide in China from 1949 to 2050," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 24(8), pages 1343-1362, December.
    5. Gang Du & Chuanwang Sun, 2015. "Determinants of Electricity Demand in Nonmetallic Mineral Products Industry: Evidence from a Comparative Study of Japan and China," Sustainability, MDPI, vol. 7(6), pages 1-25, June.
    6. Guangyue Xu & Dong Xue & Hafizur Rehman, 2022. "Dynamic scenario analysis of CO2 emission in China’s cement industry by 2100 under the context of cutting overcapacity," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 27(8), pages 1-40, December.
    7. Junxiao Wei & Kuang Cen & Yuanbo Geng, 2019. "Evaluation and mitigation of cement CO2 emissions: projection of emission scenarios toward 2030 in China and proposal of the roadmap to a low-carbon world by 2050," Mitigation and Adaptation Strategies for Global Change, Springer, vol. 24(2), pages 301-328, February.
    8. Qi Zhang & Ting Xiang & Wei Zhang & Heming Wang & Jing An & Xiuping Li & Bing Xue, 2022. "Co‐benefits analysis of industrial symbiosis in China's key industries: Case of steel, cement, and power industries," Journal of Industrial Ecology, Yale University, vol. 26(5), pages 1714-1727, October.
    9. Cui, Zheng & Shao, Wei & Chen, Zhaoyou & Cheng, Lin, 2017. "Mathematical model and numerical solutions for the coupled gas–solid heat transfer process in moving packed beds," Applied Energy, Elsevier, vol. 206(C), pages 1297-1308.
    10. Rehfeldt, M. & Worrell, E. & Eichhammer, W. & Fleiter, T., 2020. "A review of the emission reduction potential of fuel switch towards biomass and electricity in European basic materials industry until 2030," Renewable and Sustainable Energy Reviews, Elsevier, vol. 120(C).
    11. Tan, Chang & Yu, Xiang & Guan, Yuru, 2022. "A technology-driven pathway to net-zero carbon emissions for China's cement industry," Applied Energy, Elsevier, vol. 325(C).
    12. Qin, Quande & Li, Xin & Li, Li & Zhen, Wei & Wei, Yi-Ming, 2017. "Air emissions perspective on energy efficiency: An empirical analysis of China’s coastal areas," Applied Energy, Elsevier, vol. 185(P1), pages 604-614.
    13. Huang, Yun-Hsun & Chang, Yi-Lin & Fleiter, Tobias, 2016. "A critical analysis of energy efficiency improvement potentials in Taiwan's cement industry," Energy Policy, Elsevier, vol. 96(C), pages 14-26.
    14. Pasquali, Andrea & Klinge Jacobsen, Henrik, 2019. "Construction of energy savings cost curves: An application for Denmark," MPRA Paper 93076, University Library of Munich, Germany.
    15. Gao, Tianming & Shen, Lei & Shen, Ming & Liu, Litao & Chen, Fengnan & Gao, Li, 2017. "Evolution and projection of CO2 emissions for China's cement industry from 1980 to 2020," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 522-537.
    16. Zhang, Shaohui & Worrell, Ernst & Crijns-Graus, Wina & Krol, Maarten & de Bruine, Marco & Geng, Guangpo & Wagner, Fabian & Cofala, Janusz, 2016. "Modeling energy efficiency to improve air quality and health effects of China’s cement industry," Applied Energy, Elsevier, vol. 184(C), pages 574-593.
    17. Dinga, Christian Doh & Wen, Zongguo, 2022. "China's green deal: Can China's cement industry achieve carbon neutral emissions by 2060?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 155(C).
    18. Liu, Junling & Yin, Mingjian & Xia-Hou, Qinrui & Wang, Ke & Zou, Ji, 2021. "Comparison of sectoral low-carbon transition pathways in China under the nationally determined contribution and 2 °C targets," Renewable and Sustainable Energy Reviews, Elsevier, vol. 149(C).
    19. Jiang, Jingjing & Ye, Bin & Liu, Junguo, 2019. "Peak of CO2 emissions in various sectors and provinces of China: Recent progress and avenues for further research," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 813-833.
    20. Doh Dinga, Christian & Wen, Zongguo, 2021. "Many-objective optimization of energy conservation and emission reduction in China’s cement industry," Applied Energy, Elsevier, vol. 304(C).

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:appene:v:185:y:2017:i:p1:p:671-686. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/wps/find/journaldescription.cws_home/405891/description#description .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.