IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v143y2018icp645-657.html
   My bibliography  Save this article

Effects of carbon and environmental tax on power mix planning - A case study of Hebei Province, China

Author

Listed:
  • Wang, B.
  • Liu, L.
  • Huang, G.H.
  • Li, W.
  • Xie, Y.L.

Abstract

The growing energy crisis and severe atmospheric pollution have put much pressure on the Chinese government and resulted in a lot of revolutionary changes. Considering the upcoming new environmental and carbon tax, how would the tax reform affect the power sector; which types and how much of the different power generation technologies would be added are important questions that need to be answered by decision makers. In this study, a deterministic optimization model is proposed for determining the optimal power mix through the introduction of environmental and carbon taxes. A case study of Hebei Province in China is provided to illustrate the effects of these two taxes. The capacity additions of different generation technologies, air pollutants and CO2 emission amounts, system costs, and regional power security under different tax levels are profoundly examined. The modeling results indicate that such tax policies could significantly improve to the power mix adjustment as well as the quality of the ambient air quality. Higher tax levels would promote the development of renewable power generation. Meanwhile, different degrees of CO2 and air pollutant emission reduction can be achieved. The modeling results could help the decision makers identify the satisfactory tax levels in the future.

Suggested Citation

  • Wang, B. & Liu, L. & Huang, G.H. & Li, W. & Xie, Y.L., 2018. "Effects of carbon and environmental tax on power mix planning - A case study of Hebei Province, China," Energy, Elsevier, vol. 143(C), pages 645-657.
    • Handle: RePEc:eee:energy:v:143:y:2018:i:c:p:645-657
    DOI: 10.1016/j.energy.2017.11.025
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544217318753
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2017.11.025?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. Xie, Kaigui & Dong, Jizhe & Singh, Chanan & Hu, Bo, 2016. "Optimal capacity and type planning of generating units in a bundled wind–thermal generation system," Applied Energy, Elsevier, vol. 164(C), pages 200-210.
    2. Hui, Jingxuan & Cai, Wenjia & Wang, Can & Ye, Minhua, 2017. "Analyzing the penetration barriers of clean generation technologies in China’s power sector using a multi-region optimization model," Applied Energy, Elsevier, vol. 185(P2), pages 1809-1820.
    3. Zhang, Ning & Hu, Zhaoguang & Shen, Bo & He, Gang & Zheng, Yanan, 2017. "An integrated source-grid-load planning model at the macro level: Case study for China's power sector," Energy, Elsevier, vol. 126(C), pages 231-246.
    4. Hemmati, Reza & Saboori, Hedayat & Siano, Pierluigi, 2017. "Coordinated short-term scheduling and long-term expansion planning in microgrids incorporating renewable energy resources and energy storage systems," Energy, Elsevier, vol. 134(C), pages 699-708.
    5. Muis, Z.A. & Hashim, H. & Manan, Z.A. & Taha, F.M. & Douglas, P.L., 2010. "Optimal planning of renewable energy-integrated electricity generation schemes with CO2 reduction target," Renewable Energy, Elsevier, vol. 35(11), pages 2562-2570.
    6. Guo, Zheng & Ma, Linwei & Liu, Pei & Jones, Ian & Li, Zheng, 2016. "A multi-regional modelling and optimization approach to China's power generation and transmission planning," Energy, Elsevier, vol. 116(P2), pages 1348-1359.
    7. Dong, Huijuan & Dai, Hancheng & Geng, Yong & Fujita, Tsuyoshi & Liu, Zhe & Xie, Yang & Wu, Rui & Fujii, Minoru & Masui, Toshihiko & Tang, Liang, 2017. "Exploring impact of carbon tax on China’s CO2 reductions and provincial disparities," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 596-603.
    8. Bildirici, Melike E. & Gökmenoğlu, Seyit M., 2017. "Environmental pollution, hydropower energy consumption and economic growth: Evidence from G7 countries," Renewable and Sustainable Energy Reviews, Elsevier, vol. 75(C), pages 68-85.
    9. Wierzbowski, Michal & Lyzwa, Wojciech & Musial, Izabela, 2016. "MILP model for long-term energy mix planning with consideration of power system reserves," Applied Energy, Elsevier, vol. 169(C), pages 93-111.
    10. Chen, Qixin & Kang, Chongqing & Xia, Qing & Guan, Dabo, 2011. "Preliminary exploration on low-carbon technology roadmap of China’s power sector," Energy, Elsevier, vol. 36(3), pages 1500-1512.
    11. Zhu, Lei & Fan, Ying, 2010. "Optimization of China's generating portfolio and policy implications based on portfolio theory," Energy, Elsevier, vol. 35(3), pages 1391-1402.
    12. Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S. & Kopanos, Georgios M. & Pistikopoulos, Efstratios N. & Georgiadis, Michael C., 2014. "A spatial multi-period long-term energy planning model: A case study of the Greek power system," Applied Energy, Elsevier, vol. 115(C), pages 456-482.
    13. Cheng, Rui & Xu, Zhaofeng & Liu, Pei & Wang, Zhe & Li, Zheng & Jones, Ian, 2015. "A multi-region optimization planning model for China’s power sector," Applied Energy, Elsevier, vol. 137(C), pages 413-426.
    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. Xinghua Fan & Xuxia Li & Jiuli Yin, 2019. "Impact of environmental tax on green development: A nonlinear dynamical system analysis," PLOS ONE, Public Library of Science, vol. 14(9), pages 1-23, September.
    2. Shan Huang & Yan Ding & Pierre Failler, 2022. "Does the Government’s Environmental Attention Affect Ambient Pollution? Empirical Research on Chinese Cities," Sustainability, MDPI, vol. 14(6), pages 1-19, March.
    3. Freire-González, Jaume & Puig-Ventosa, Ignasi, 2019. "Reformulating taxes for an energy transition," Energy Economics, Elsevier, vol. 78(C), pages 312-323.
    4. Freyre, Alisa & Klinke, Sandra & Patel, Martin K., 2020. "Carbon tax and energy programs for buildings: Rivals or allies?," Energy Policy, Elsevier, vol. 139(C).
    5. Noussan, Michel, 2018. "Performance based approach for electricity generation in smart grids," Applied Energy, Elsevier, vol. 220(C), pages 231-241.
    6. Quiroga, Daniela & Sauma, Enzo & Pozo, David, 2019. "Power system expansion planning under global and local emission mitigation policies," Applied Energy, Elsevier, vol. 239(C), pages 1250-1264.
    7. Yunfei An & Dequn Zhou & Qunwei Wang, 2022. "Carbon emission reduction potential and its influencing factors in China’s coal-fired power industry: a cost optimization and decomposition analysis," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 24(3), pages 3619-3639, March.
    8. Karmaker, Shamal Chandra & Hosan, Shahadat & Chapman, Andrew J. & Saha, Bidyut Baran, 2021. "The role of environmental taxes on technological innovation," Energy, Elsevier, vol. 232(C).
    9. Lin, Boqiang & Jia, Zhijie, 2019. "How does tax system on energy industries affect energy demand, CO2 emissions, and economy in China?," Energy Economics, Elsevier, vol. 84(C).
    10. Xie, Li & Zhou, Zhichao & Hui, Shimin, 2022. "Does environmental regulation improve the structure of power generation technology? Evidence from China's pilot policy on the carbon emissions trading market(CETM)," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    11. Wu, C.B. & Guan, P.B. & Zhong, L.N. & Lv, J. & Hu, X.F. & Huang, G.H. & Li, C.C., 2020. "An optimized low-carbon production planning model for power industry in coal-dependent regions - A case study of Shandong, China," Energy, Elsevier, vol. 192(C).
    12. Xiaomin Zhao & Jiahui Li & Yang Li, 2022. "Impact of Environmental Tax on Corporate Sustainable Performance: Insights from High-Tech Firms in China," IJERPH, MDPI, vol. 20(1), pages 1-13, December.
    13. Pinglin He & Jing Ning & Zhongfu Yu & Hao Xiong & Huayu Shen & Hui Jin, 2019. "Can Environmental Tax Policy Really Help to Reduce Pollutant Emissions? An Empirical Study of a Panel ARDL Model Based on OECD Countries and China," Sustainability, MDPI, vol. 11(16), pages 1-32, August.
    14. Bartolini, Andrea & Mazzoni, Stefano & Comodi, Gabriele & Romagnoli, Alessandro, 2021. "Impact of carbon pricing on distributed energy systems planning," Applied Energy, Elsevier, vol. 301(C).
    15. Scott, Ian J. & Botterud, Audun & Carvalho, Pedro M.S. & Silva, Carlos A. Santos, 2020. "Renewable energy support policy evaluation: The role of long-term uncertainty in market modelling," Applied Energy, Elsevier, vol. 278(C).
    16. Wei, Yongmei & Ye, Qi & Ding, Yihong & Ai, Bingjun & Tan, Qinliang & Song, Wenda, 2021. "Optimization model of a thermal-solar-wind power planning considering economic and social benefits," Energy, Elsevier, vol. 222(C).
    17. He, Yong & Zeng, Zhaoai & Liao, Nuo, 2024. "Multi-objective optimization of regional power generation mix considering both carbon cap-and-trade mechanisms and renewable portfolio standards," Renewable Energy, Elsevier, vol. 231(C).
    18. Atherton, John & Xie, Wanni & Aditya, Leonardus Kevin & Zhou, Xiaochi & Karmakar, Gourab & Akroyd, Jethro & Mosbach, Sebastian & Lim, Mei Qi & Kraft, Markus, 2021. "How does a carbon tax affect Britain’s power generation composition?," Applied Energy, Elsevier, vol. 298(C).
    19. Anh Huu Nguyen & Thinh Gia Hoang & Duy Thanh Nguyen & Loan Quynh Thi Nguyen & Duong Thuy Doan, 2023. "The Development of Green Bond in Developing Countries: Insights from Southeast Asia Market Participants," The European Journal of Development Research, Palgrave Macmillan;European Association of Development Research and Training Institutes (EADI), vol. 35(1), pages 196-218, February.

    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, Tianxiao & Li, Zheng & Li, Weiqi, 2020. "Scenarios analysis on the cross-region integrating of renewable power based on a long-period cost-optimization power planning model," Renewable Energy, Elsevier, vol. 156(C), pages 851-863.
    2. Koltsaklis, Nikolaos E. & Dagoumas, Athanasios S., 2018. "State-of-the-art generation expansion planning: A review," Applied Energy, Elsevier, vol. 230(C), pages 563-589.
    3. Guo, Zheng & Ma, Linwei & Liu, Pei & Jones, Ian & Li, Zheng, 2016. "A multi-regional modelling and optimization approach to China's power generation and transmission planning," Energy, Elsevier, vol. 116(P2), pages 1348-1359.
    4. Tang, Baojun & Li, Ru & Yu, Biying & An, Runying & Wei, Yi-Ming, 2018. "How to peak carbon emissions in China's power sector: A regional perspective," Energy Policy, Elsevier, vol. 120(C), pages 365-381.
    5. Pratama, Yoga Wienda & Purwanto, Widodo Wahyu & Tezuka, Tetsuo & McLellan, Benjamin Craig & Hartono, Djoni & Hidayatno, Akhmad & Daud, Yunus, 2017. "Multi-objective optimization of a multiregional electricity system in an archipelagic state: The role of renewable energy in energy system sustainability," Renewable and Sustainable Energy Reviews, Elsevier, vol. 77(C), pages 423-439.
    6. Wang, Hongye & Su, Bin & Mu, Hailin & Li, Nan & Jiang, Bo & Kong, Xue, 2019. "Optimization of electricity generation and interprovincial trading strategies in Southern China," Energy, Elsevier, vol. 174(C), pages 696-707.
    7. Guo, Zheng & Cheng, Rui & Xu, Zhaofeng & Liu, Pei & Wang, Zhe & Li, Zheng & Jones, Ian & Sun, Yong, 2017. "A multi-region load dispatch model for the long-term optimum planning of China’s electricity sector," Applied Energy, Elsevier, vol. 185(P1), pages 556-572.
    8. Yi, Bo-Wen & Xu, Jin-Hua & Fan, Ying, 2016. "Inter-regional power grid planning up to 2030 in China considering renewable energy development and regional pollutant control: A multi-region bottom-up optimization model," Applied Energy, Elsevier, vol. 184(C), pages 641-658.
    9. Radhanon Diewvilai & Kulyos Audomvongseree, 2021. "Generation Expansion Planning with Energy Storage Systems Considering Renewable Energy Generation Profiles and Full-Year Hourly Power Balance Constraints," Energies, MDPI, vol. 14(18), pages 1-25, September.
    10. Zhang, Yaru & Ma, Tieju & Guo, Fei, 2018. "A multi-regional energy transport and structure model for China’s electricity system," Energy, Elsevier, vol. 161(C), pages 907-919.
    11. Liang, Yuanyuan & Yu, Biying & Wang, Lu, 2019. "Costs and benefits of renewable energy development in China's power industry," Renewable Energy, Elsevier, vol. 131(C), pages 700-712.
    12. Liu, Hailiang & Brown, Tom & Andresen, Gorm Bruun & Schlachtberger, David P. & Greiner, Martin, 2019. "The role of hydro power, storage and transmission in the decarbonization of the Chinese power system," Applied Energy, Elsevier, vol. 239(C), pages 1308-1321.
    13. Constantino Dário Justo & José Eduardo Tafula & Pedro Moura, 2022. "Planning Sustainable Energy Systems in the Southern African Development Community: A Review of Power Systems Planning Approaches," Energies, MDPI, vol. 15(21), pages 1-28, October.
    14. Zhang, Shuang & Zhao, Tao & Xie, Bai-Chen, 2018. "What is the optimal power generation mix of China? An empirical analysis using portfolio theory," Applied Energy, Elsevier, vol. 229(C), pages 522-536.
    15. Li, Tianxiao & Liu, Pei & Li, Zheng, 2020. "Quantitative relationship between low-carbon pathways and system transition costs based on a multi-period and multi-regional energy infrastructure planning approach: A case study of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    16. Jie, Dingfei & Xu, Xiangyang & Guo, Fei, 2021. "The future of coal supply in China based on non-fossil energy development and carbon price strategies," Energy, Elsevier, vol. 220(C).
    17. Guerra, Omar J. & Tejada, Diego A. & Reklaitis, Gintaras V., 2016. "An optimization framework for the integrated planning of generation and transmission expansion in interconnected power systems," Applied Energy, Elsevier, vol. 170(C), pages 1-21.
    18. Trotter, Philipp A. & Cooper, Nathanial J. & Wilson, Peter R., 2019. "A multi-criteria, long-term energy planning optimisation model with integrated on-grid and off-grid electrification – The case of Uganda," Applied Energy, Elsevier, vol. 243(C), pages 288-312.
    19. Li, Ying & Lukszo, Zofia & Weijnen, Margot, 2015. "The implications of CO2 price for China’s power sector decarbonization," Applied Energy, Elsevier, vol. 146(C), pages 53-64.
    20. Xiao, Jin & Li, Guohao & Xie, Ling & Wang, Shouyang & Yu, Lean, 2021. "Decarbonizing China's power sector by 2030 with consideration of technological progress and cross-regional power transmission," Energy Policy, Elsevier, vol. 150(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:energy:v:143:y:2018:i:c:p:645-657. 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.journals.elsevier.com/energy .

    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.