IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v130y2019icp389-408.html
   My bibliography  Save this article

Determinants of changes in electricity generation intensity among different power sectors

Author

Listed:
  • Cheng, Shulei
  • Wu, Yinyin
  • Chen, Hua
  • Chen, Jiandong
  • Song, Malin
  • Hou, Wenxuan

Abstract

This study analyzes the determinants of changes in electricity generation intensity in China and further uncovers the reasons for the differences between the changes in electricity generation intensity in the thermal and sustainable power sectors. By developing a factorial-intertemporal nested decomposition technique using the refined Laspeyres index, we demonstrate the contributions of electricity generation structure, electricity generation-to-consumption ratio, production electricity consumption intensity, residential electricity consumption intensity, and electricity consumption loss intensity effects. Although the electricity generation intensity of the thermal power sector has been lower than that of the sustainable power sector, the latter has declined remarkably and has remained the key sector driving the overall changes in electricity generation intensity. Meanwhile, the effect of electricity consumption intensity is the main factor that reduces electricity generation intensity. Moreover, the impact of production electricity consumption intensity in the thermal power sector exceeds its impact in the sustainable power sector. Ultimately, we find that the differences between the changes in electricity generation intensity in the thermal and sustainable power sectors are mainly due to their differences in production electricity consumption intensity.

Suggested Citation

  • Cheng, Shulei & Wu, Yinyin & Chen, Hua & Chen, Jiandong & Song, Malin & Hou, Wenxuan, 2019. "Determinants of changes in electricity generation intensity among different power sectors," Energy Policy, Elsevier, vol. 130(C), pages 389-408.
    • Handle: RePEc:eee:enepol:v:130:y:2019:i:c:p:389-408
    DOI: 10.1016/j.enpol.2019.04.029
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0301421519302782
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2019.04.029?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. Meng, Ming & Mander, Sarah & Zhao, Xiaoli & Niu, Dongxiao, 2016. "Have market-oriented reforms improved the electricity generation efficiency of China's thermal power industry? An empirical analysis," Energy, Elsevier, vol. 114(C), pages 734-741.
    2. Dahlke, Steve, 2018. "Effects of wholesale electricity markets on wind generation in the midwestern United States," Energy Policy, Elsevier, vol. 122(C), pages 358-368.
    3. Reddy, B. Sudhakara, 2018. "Economic dynamics and technology diffusion in indian power sector," Energy Policy, Elsevier, vol. 120(C), pages 425-435.
    4. Chen, Jiandong & Cheng, Shulei & Song, Malin, 2017. "Decomposing inequality in energy-related CO2 emissions by source and source increment: The roles of production and residential consumption," Energy Policy, Elsevier, vol. 107(C), pages 698-710.
    5. Ang, B.W & Zhang, F.Q & Choi, Ki-Hong, 1998. "Factorizing changes in energy and environmental indicators through decomposition," Energy, Elsevier, vol. 23(6), pages 489-495.
    6. Sándor Szabó & Magda Moner-Girona & Ioannis Kougias & Rob Bailis & Katalin Bódis, 2016. "Identification of advantageous electricity generation options in sub-Saharan Africa integrating existing resources," Nature Energy, Nature, vol. 1(10), pages 1-8, October.
    7. Al-mulali, Usama & Fereidouni, Hassan Gholipour & Lee, Janice Y.M., 2014. "Electricity consumption from renewable and non-renewable sources and economic growth: Evidence from Latin American countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 30(C), pages 290-298.
    8. Rehdanz, Katrin & Schröder, Carsten & Narita, Daiju & Okubo, Toshihiro, 2017. "Public preferences for alternative electricity mixes in post-Fukushima Japan," Energy Economics, Elsevier, vol. 65(C), pages 262-270.
    9. Pretis, Felix & Roser, Max, 2017. "Carbon dioxide emission-intensity in climate projections: Comparing the observational record to socio-economic scenarios," Energy, Elsevier, vol. 135(C), pages 718-725.
    10. Chen, Zhewen & Zhang, Xiaosong & Han, Wei & Gao, Lin & Li, Sheng, 2018. "A power generation system with integrated supercritical water gasification of coal and CO2 capture," Energy, Elsevier, vol. 142(C), pages 723-730.
    11. Sun, J. W., 1998. "Changes in energy consumption and energy intensity: A complete decomposition model," Energy Economics, Elsevier, vol. 20(1), pages 85-100, February.
    12. Štreimikienė, Dalia & Šliogerienė, Jūratė & Turskis, Zenonas, 2016. "Multi-criteria analysis of electricity generation technologies in Lithuania," Renewable Energy, Elsevier, vol. 85(C), pages 148-156.
    13. Rodríguez, Miguel & Pena-Boquete, Yolanda, 2017. "Carbon intensity changes in the Asian Dragons. Lessons for climate policy design," Energy Economics, Elsevier, vol. 66(C), pages 17-26.
    14. Johnstone, Nick & Managi, Shunsuke & Rodríguez, Miguel Cárdenas & Haščič, Ivan & Fujii, Hidemichi & Souchier, Martin, 2017. "Environmental policy design, innovation and efficiency gains in electricity generation," Energy Economics, Elsevier, vol. 63(C), pages 106-115.
    15. Shahiduzzaman, Md. & Alam, Khorshed, 2013. "Changes in energy efficiency in Australia: A decomposition of aggregate energy intensity using logarithmic mean Divisia approach," Energy Policy, Elsevier, vol. 56(C), pages 341-351.
    16. Diakoulaki, D. & Mavrotas, G. & Orkopoulos, D. & Papayannakis, L., 2006. "A bottom-up decomposition analysis of energy-related CO2 emissions in Greece," Energy, Elsevier, vol. 31(14), pages 2638-2651.
    17. Ozcan, Mustafa, 2019. "Factors influencing the electricity generation preferences of Turkish citizens: Citizens' attitudes and policy recommendations in the context of climate change and environmental impact," Renewable Energy, Elsevier, vol. 132(C), pages 381-393.
    18. Ahmad, Salman & Nadeem, Abid & Akhanova, Gulzhanat & Houghton, Tom & Muhammad-Sukki, Firdaus, 2017. "Multi-criteria evaluation of renewable and nuclear resources for electricity generation in Kazakhstan," Energy, Elsevier, vol. 141(C), pages 1880-1891.
    19. Vogel, E.E. & Saravia, G. & Kobe, S. & Schumann, R. & Schuster, R., 2018. "A novel method to optimize electricity generation from wind energy," Renewable Energy, Elsevier, vol. 126(C), pages 724-735.
    20. Michaël Aklin & Chao-yo Cheng & Johannes Urpelainen & Karthik Ganesan & Abhishek Jain, 2016. "Factors affecting household satisfaction with electricity supply in rural India," Nature Energy, Nature, vol. 1(11), pages 1-6, November.
    21. Ewing, Bradley T. & Payne, James E. & Caporin, Massimilano, 2022. "The Asymmetric Impact of Oil Prices and Production on Drilling Rig Trajectory: A correction," Resources Policy, Elsevier, vol. 79(C).
    22. Shonali Pachauri, 2014. "Household electricity access a trivial contributor to CO2 emissions growth in India," Nature Climate Change, Nature, vol. 4(12), pages 1073-1076, December.
    23. Sobrino, Natalia & Monzon, Andres, 2014. "The impact of the economic crisis and policy actions on GHG emissions from road transport in Spain," Energy Policy, Elsevier, vol. 74(C), pages 486-498.
    24. Das, Aparna & Paul, Saikat Kumar, 2013. "Changes in energy requirements of the residential sector in India between 1993–94 and 2006–07," Energy Policy, Elsevier, vol. 53(C), pages 27-40.
    25. Polemis, Michael L. & Dagoumas, Athanasios S., 2013. "The electricity consumption and economic growth nexus: Evidence from Greece," Energy Policy, Elsevier, vol. 62(C), pages 798-808.
    26. Halkos, George E. & Tzeremes, Nickolaos G., 2014. "The effect of electricity consumption from renewable sources on countries׳ economic growth levels: Evidence from advanced, emerging and developing economies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 166-173.
    27. Chen, Jiandong & Cheng, Shulei & Song, Malin, 2018. "Changes in energy-related carbon dioxide emissions of the agricultural sector in China from 2005 to 2013," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 748-761.
    28. Qingyou Yan & Yaxian Wang & Tomas Baležentis & Yikai Sun & Dalia Streimikiene, 2018. "Energy-Related CO 2 Emission in China’s Provincial Thermal Electricity Generation: Driving Factors and Possibilities for Abatement," Energies, MDPI, vol. 11(5), pages 1-25, April.
    29. Ang, B.W. & Zhang, F.Q., 2000. "A survey of index decomposition analysis in energy and environmental studies," Energy, Elsevier, vol. 25(12), pages 1149-1176.
    30. Chen, Zhewen & Gao, Lin & Zhang, Xiaosong & Han, Wei & Li, Sheng, 2018. "High-efficiency power generation system with integrated supercritical water gasification of coal," Energy, Elsevier, vol. 159(C), pages 810-816.
    31. Di Bella, Gabriel & Grigoli, Francesco, 2017. "Power it up: Strengthening the electricity sector to improve efficiency and support economic activity," Energy Economics, Elsevier, vol. 67(C), pages 375-386.
    32. Payne, James E., 2010. "A survey of the electricity consumption-growth literature," Applied Energy, Elsevier, vol. 87(3), pages 723-731, March.
    33. Dhakal, Shobhakar, 2009. "Urban energy use and carbon emissions from cities in China and policy implications," Energy Policy, Elsevier, vol. 37(11), pages 4208-4219, November.
    34. Jennings, Mark & Ó Gallachóir, Brian P. & Schipper, Lee, 2013. "Irish passenger transport: Data refinements, international comparisons, and decomposition analysis," Energy Policy, Elsevier, vol. 56(C), pages 151-164.
    35. Ebohon, Obas John & Ikeme, Anthony Jekwu, 2006. "Decomposition analysis of CO2 emission intensity between oil-producing and non-oil-producing sub-Saharan African countries," Energy Policy, Elsevier, vol. 34(18), pages 3599-3611, December.
    36. Sumabat, Ana Karmela & Lopez, Neil Stephen & Yu, Krista Danielle & Hao, Han & Li, Richard & Geng, Yong & Chiu, Anthony S.F., 2016. "Decomposition analysis of Philippine CO2 emissions from fuel combustion and electricity generation," Applied Energy, Elsevier, vol. 164(C), pages 795-804.
    37. Steenhof, Paul A. & Weber, Chris J., 2011. "An assessment of factors impacting Canada's electricity sector's GHG emissions," Energy Policy, Elsevier, vol. 39(7), pages 4089-4096, July.
    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. Chen, Jiandong & Gao, Ming & Shahbaz, Muhammad & Cheng, Shulei & Song, Malin, 2021. "An improved decomposition approach toward energy rebound effects in China: Review since 1992," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    2. Ming Meng & Shucheng Wu & Jin Zhou & Xinfang Wang, 2019. "What is Currently Driving the Growth of China’s Household Electricity Consumption? A Clustering and Decomposition Analysis," Sustainability, MDPI, vol. 11(17), pages 1-14, August.
    3. Yan Lu & Xu Yang & Yixiang Ma & Lean Yu, 2022. "Rebound Effect of China’s Electric Power Demand in the Context of Technological Innovation," Sustainability, MDPI, vol. 14(14), pages 1-18, July.
    4. Cheng, Shulei & Fan, Wei & Zhang, Jian & Wang, Ning & Meng, Fanxin & Liu, Gengyuan, 2021. "Multi-sectoral determinants of carbon emission inequality in Chinese clustering cities," Energy, Elsevier, vol. 214(C).
    5. Halkos, George, 2020. "Examining the level of competition in the energy sector," MPRA Paper 98343, University Library of Munich, Germany.
    6. Zheng, Hongmei & Li, Aimin & Meng, Fanxin & Liu, Gengyuan, 2020. "Energy flows embodied in China's interregional trade: Case study of Hebei Province," Ecological Modelling, Elsevier, vol. 428(C).
    7. Nyiko Worship Hlongwane & Mpho Lenoke & Olebogeng David Daw, 2023. "An Analysis of Electricity Generation, Supply, and Economic Growth in Selected SADC Countries," International Journal of Energy Economics and Policy, Econjournals, vol. 13(6), pages 482-493, November.
    8. Mine Isik & P. Ozge Kaplan, 2020. "Understanding Technology, Fuel, Market and Policy Drivers for New York State’s Power Sector Transformation," Sustainability, MDPI, vol. 13(1), pages 1-23, December.
    9. Hu, Junmei & Liu, Gengyuan & Meng, Fanxin & Hu, Yuanchao & Casazza, Marco, 2020. "Subnational carbon flow pattern analysis using multi-scale input-output model," Ecological Modelling, Elsevier, vol. 431(C).
    10. Tang, Songlin & Raza, Muhammad Yousaf & Lin, Boqiang, 2024. "Analysis of coal-related energy consumption, economic growth and intensity effects in Pakistan," Energy, Elsevier, vol. 292(C).
    11. Chen, Bin & Yan, Jun & Zhu, Xun & Liu, Yue, 2023. "The potential role of renewable power penetration in energy intensity reduction: Evidence from the Chinese provincial electricity sector," Energy Economics, Elsevier, vol. 127(PB).
    12. Chen, Jiandong & Xie, Qiaoli & Shahbaz, Muhammad & Song, Malin & Li, Li, 2022. "Impact of bilateral trade on fossil energy consumption in BRICS: An extended decomposition analysis," Economic Modelling, Elsevier, vol. 106(C).
    13. Chishti, Muhammad Zubair & Dogan, Eyup & Zaman, Umer, 2023. "Effects of the circular economy, environmental policy, energy transition, and geopolitical risk on sustainable electricity generation," Utilities Policy, Elsevier, vol. 82(C).
    14. Lin, Boqiang & Qiao, Qiao, 2023. "Exploring the participation willingness and potential carbon emission reduction of Chinese residential green electricity market," Energy Policy, Elsevier, vol. 174(C).
    15. Cui, Yin, 2023. "The influencing factors of carrying capacity of urban electricity infrastructure: Case study of six Chinese mega-cities," Energy, Elsevier, vol. 282(C).
    16. Nyiko Worship Hlongwane & Olebogeng David Daw, 2023. "Assessing the Possibility of Medupi and Kusile Providing Enough Electricity Running at Full Capacity in South Africa," International Journal of Energy Economics and Policy, Econjournals, vol. 13(4), pages 28-39, July.
    17. Shulei Cheng & Wei Fan & Jianlin Wang, 2022. "Investigating the humanitarian labor efficiency of China: a factor-specific model," Annals of Operations Research, Springer, vol. 319(1), pages 439-461, December.
    18. Cheng, Shulei & Fan, Wei & Chen, Jiandong & Meng, Fanxin & Liu, Gengyuan & Song, Malin & Yang, Zhifeng, 2020. "The impact of fiscal decentralization on CO2 emissions in China," Energy, Elsevier, vol. 192(C).

    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. Fernández González, P. & Presno, M.J. & Landajo, M., 2015. "Regional and sectoral attribution to percentage changes in the European Divisia carbonization index," Renewable and Sustainable Energy Reviews, Elsevier, vol. 52(C), pages 1437-1452.
    2. Goh, Tian & Ang, B.W. & Xu, X.Y., 2018. "Quantifying drivers of CO2 emissions from electricity generation – Current practices and future extensions," Applied Energy, Elsevier, vol. 231(C), pages 1191-1204.
    3. Moutinho, Victor & Moreira, António Carrizo & Silva, Pedro Miguel, 2015. "The driving forces of change in energy-related CO2 emissions in Eastern, Western, Northern and Southern Europe: The LMDI approach to decomposition analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 50(C), pages 1485-1499.
    4. Kang, Jidong & Zhao, Tao & Liu, Nan & Zhang, Xin & Xu, Xianshuo & Lin, Tao, 2014. "A multi-sectoral decomposition analysis of city-level greenhouse gas emissions: Case study of Tianjin, China," Energy, Elsevier, vol. 68(C), pages 562-571.
    5. Xu, X.Y. & Ang, B.W., 2013. "Index decomposition analysis applied to CO2 emission studies," Ecological Economics, Elsevier, vol. 93(C), pages 313-329.
    6. Fernández González, P., 2015. "Exploring energy efficiency in several European countries. An attribution analysis of the Divisia structural change index," Applied Energy, Elsevier, vol. 137(C), pages 364-374.
    7. Chen, Jiandong & Cheng, Shulei & Song, Malin, 2018. "Changes in energy-related carbon dioxide emissions of the agricultural sector in China from 2005 to 2013," Renewable and Sustainable Energy Reviews, Elsevier, vol. 94(C), pages 748-761.
    8. Adewuyi, Adeolu O. & Awodumi, Olabanji B., 2017. "Renewable and non-renewable energy-growth-emissions linkages: Review of emerging trends with policy implications," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 275-291.
    9. Fernández González, P. & Landajo, M. & Presno, M.J., 2013. "The Divisia real energy intensity indices: Evolution and attribution of percent changes in 20 European countries from 1995 to 2010," Energy, Elsevier, vol. 58(C), pages 340-349.
    10. Roinioti, Argiro & Koroneos, Christopher, 2017. "The decomposition of CO2 emissions from energy use in Greece before and during the economic crisis and their decoupling from economic growth," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 448-459.
    11. de Freitas, Luciano Charlita & Kaneko, Shinji, 2011. "Decomposition of CO2 emissions change from energy consumption in Brazil: Challenges and policy implications," Energy Policy, Elsevier, vol. 39(3), pages 1495-1504, March.
    12. Ma, Chunbo, 2014. "A multi-fuel, multi-sector and multi-region approach to index decomposition: An application to China's energy consumption 1995–2010," Energy Economics, Elsevier, vol. 42(C), pages 9-16.
    13. Gui, Shusen & Mu, Hailin & Li, Nan, 2014. "Analysis of impact factors on China's CO2 emissions from the view of supply chain paths," Energy, Elsevier, vol. 74(C), pages 405-416.
    14. Chakraborty, Saptorshee Kanto & Mazzanti, Massimiliano, 2021. "Renewable electricity and economic growth relationship in the long run: Panel data econometric evidence from the OECD," Structural Change and Economic Dynamics, Elsevier, vol. 59(C), pages 330-341.
    15. Zafar, Muhammad Wasif & Shahbaz, Muhammad & Hou, Fujun & Sinha, Avik, 2018. "¬¬¬¬¬¬From Nonrenewable to Renewable Energy and Its Impact on Economic Growth: Silver Line of Research & Development Expenditures in APEC Countries," MPRA Paper 90611, University Library of Munich, Germany, revised 10 Dec 2018.
    16. Marques, António Cardoso & Fuinhas, José Alberto & Menegaki, Angeliki N., 2014. "Interactions between electricity generation sources and economic activity in Greece: A VECM approach," Applied Energy, Elsevier, vol. 132(C), pages 34-46.
    17. Jidong Kang & Tao Zhao & Xiaosong Ren & Tao Lin, 2012. "Using decomposition analysis to evaluate the performance of China’s 30 provinces in CO 2 emission reductions over 2005–2009," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 64(2), pages 999-1013, November.
    18. Zbigniew Gołaś, 2022. "Changes in Energy-Related Carbon Dioxide Emissions of the Agricultural Sector in Poland from 2000 to 2019," Energies, MDPI, vol. 15(12), pages 1-18, June.
    19. Lin, Boqiang & Ouyang, Xiaoling, 2014. "Analysis of energy-related CO2 (carbon dioxide) emissions and reduction potential in the Chinese non-metallic mineral products industry," Energy, Elsevier, vol. 68(C), pages 688-697.
    20. Fernández González, P. & Landajo, M. & Presno, M.J., 2014. "Tracking European Union CO2 emissions through LMDI (logarithmic-mean Divisia index) decomposition. The activity revaluation approach," Energy, Elsevier, vol. 73(C), pages 741-750.

    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:enepol:v:130:y:2019:i:c:p:389-408. 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/locate/enpol .

    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.