IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v12y2020i16p6582-d398939.html
   My bibliography  Save this article

Decisions in Power Supply Chain with Emission Reduction Effort of Coal-Fired Power Plant under the Power Market Reform

Author

Listed:
  • Lingyan Xu

    (Management School, Jiangsu University, 301 Xuefu Road, Zhenjiang 212013, China
    Department of Systems Design Engineering, University of Waterloo, Waterloo, ON N2L 3G1, Canada)

  • Fenglian Huang

    (Management School, Jiangsu University, 301 Xuefu Road, Zhenjiang 212013, China)

  • Jianguo Du

    (Management School, Jiangsu University, 301 Xuefu Road, Zhenjiang 212013, China)

  • Dandan Wang

    (Management School, Jiangsu University, 301 Xuefu Road, Zhenjiang 212013, China)

Abstract

Sustainability in power supply chain has been supported by emission reduction of coal-fired power generation and increasing renewable energy power generation. Under the power market reform of direct power purchase transactions, this paper focuses on the channel selection and emission reduction decisions of power supply chain. From the theoretical perspective, this paper develops the decision-making models of centralized and decentralized power supply chain, which consist of one renewable energy power generation enterprise, one coal-fired power plant and one power grid enterprise. The optimal strategies of power quantities and profits for power supply chain members and their corresponding numerical experiments are analyzed in different cases. The results show that there are q A 1 N c * < q A 1 L c * for renewable energy power generation enterprise A, q B 1 N c * > q B 1 L c * and e B N c * > e B L c * for coal-fired power plant B, which indicate that the direct power purchase channel in the centralized scenario is conducive to promoting the transaction quantity of renewable energy power generation, as well as the on-grid power quantity and emission reduction efforts of coal-fired power plant B. Furthermore, the profit of whole power supply chain could be enhanced by the increasing on-grid power preference coefficient of coal-fired power generation, subsidy for renewable energy power generation and preference coefficient for clean production, and by the decreasing emission reduction cost coefficient of coal-fired power plant. Additionally, the emission reduction effort of coal-fired power plant is positively relevant with preference coefficient for clean production, whereas it is negatively relevant with power grid wheeling charge, emission reduction cost coefficient and subsidy for renewable energy power generation. Our findings can provide useful managerial insights for policymakers and enterprises in the sustainability of power supply chain.

Suggested Citation

  • Lingyan Xu & Fenglian Huang & Jianguo Du & Dandan Wang, 2020. "Decisions in Power Supply Chain with Emission Reduction Effort of Coal-Fired Power Plant under the Power Market Reform," Sustainability, MDPI, vol. 12(16), pages 1-30, August.
    • Handle: RePEc:gam:jsusta:v:12:y:2020:i:16:p:6582-:d:398939
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/12/16/6582/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/12/16/6582/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Takashi Mitani & Muhammad Aziz & Takuya Oda & Atsuki Uetsuji & Yoko Watanabe & Takao Kashiwagi, 2017. "Annual Assessment of Large-Scale Introduction of Renewable Energy: Modeling of Unit Commitment Schedule for Thermal Power Generators and Pumped Storages," Energies, MDPI, vol. 10(6), pages 1-19, May.
    2. He, Yongxiu & Xu, Yang & Pang, Yuexia & Tian, Huiying & Wu, Rui, 2016. "A regulatory policy to promote renewable energy consumption in China: Review and future evolutionary path," Renewable Energy, Elsevier, vol. 89(C), pages 695-705.
    3. Ling Tang & Jiabao Qu & Zhifu Mi & Xin Bo & Xiangyu Chang & Laura Diaz Anadon & Shouyang Wang & Xiaoda Xue & Shibei Li & Xin Wang & Xiaohong Zhao, 2019. "Substantial emission reductions from Chinese power plants after the introduction of ultra-low emissions standards," Nature Energy, Nature, vol. 4(11), pages 929-938, November.
    4. Wang, Jinman & Wang, Ruogu & Zhu, Yucheng & Li, Jiayan, 2018. "Life cycle assessment and environmental cost accounting of coal-fired power generation in China," Energy Policy, Elsevier, vol. 115(C), pages 374-384.
    5. Zeng, Ming & Yang, Yongqi & Fan, Qiannan & Liu, Yingxin & Zou, Zhuojun, 2015. "Coordination between clean energy generation and thermal power generation under the policy of “direct power-purchase for large users” in China," Utilities Policy, Elsevier, vol. 33(C), pages 10-22.
    6. Zhang, Ming & Liu, Xiao & Wang, Wenwen & Zhou, Min, 2013. "Decomposition analysis of CO2 emissions from electricity generation in China," Energy Policy, Elsevier, vol. 52(C), pages 159-165.
    7. Stram, Bruce N., 2016. "Key challenges to expanding renewable energy," Energy Policy, Elsevier, vol. 96(C), pages 728-734.
    8. Yuan, Jiahai & Sun, Shenghui & Shen, Jiakun & Xu, Yan & Zhao, Changhong, 2014. "Wind power supply chain in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 39(C), pages 356-369.
    9. Oliveira, Fernando S. & Ruiz, Carlos & Conejo, Antonio J., 2013. "Contract design and supply chain coordination in the electricity industry," European Journal of Operational Research, Elsevier, vol. 227(3), pages 527-537.
    10. Liu, Shiyu & Bie, Zhaohong & Lin, Jiang & Wang, Xifan, 2018. "Curtailment of renewable energy in Northwest China and market-based solutions," Energy Policy, Elsevier, vol. 123(C), pages 494-502.
    11. Xiaoyan Wang & Minggao Xue & Lu Xing, 2018. "Analysis of Carbon Emission Reduction in a Dual-Channel Supply Chain with Cap-And-Trade Regulation and Low-Carbon Preference," Sustainability, MDPI, vol. 10(3), pages 1-18, February.
    12. Nasiri, Fuzhan & Zaccour, Georges, 2009. "An exploratory game-theoretic analysis of biomass electricity generation supply chain," Energy Policy, Elsevier, vol. 37(11), pages 4514-4522, November.
    13. Liu, Junxia, 2019. "China's renewable energy law and policy: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 99(C), pages 212-219.
    14. Macdonald Nko & S.P. Daniel Chowdhury & Olawale Popoola, 2019. "Application Assessment of Pumped Storage and Lithium-Ion Batteries on Electricity Supply Grid," Energies, MDPI, vol. 12(15), pages 1-36, 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. Hmouda, Ahmed M.O. & Orzes, Guido & Sauer, Philipp C., 2024. "Sustainable supply chain management in energy production: A literature review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 191(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. Shuangquan Liu & Yanxuan Huang & Yue Wang & Qizhuan Shao & Han Zhou & Jinwen Wang & Cheng Chen, 2023. "Incentive Mechanisms to Integrate More Renewable Energy in Electricity Markets in China," Energies, MDPI, vol. 16(18), pages 1-16, September.
    2. Wen, Wen & Zhang, Qin, 2015. "A design of straw acquisition mode for China's straw power plant based on supply chain coordination," Renewable Energy, Elsevier, vol. 76(C), pages 369-374.
    3. Yan, Zhe & Zhang, Yongming & Liang, Runqi & Jin, Wenrui, 2020. "An allocative method of hybrid electrical and thermal energy storage capacity for load shifting based on seasonal difference in district energy planning," Energy, Elsevier, vol. 207(C).
    4. Wang, Kai-Hua & Su, Chi-Wei & Lobonţ, Oana-Ramona & Moldovan, Nicoleta-Claudia, 2020. "Chinese renewable energy industries’ boom and recession: Evidence from bubble detection procedure," Energy Policy, Elsevier, vol. 138(C).
    5. Liu, Benxi & Liao, Shengli & Cheng, Chuntian & Chen, Fu & Li, Weidong, 2018. "Hydropower curtailment in Yunnan Province, southwestern China: Constraint analysis and suggestions," Renewable Energy, Elsevier, vol. 121(C), pages 700-711.
    6. Goh, Tian & Ang, B.W. & Su, Bin & Wang, H., 2018. "Drivers of stagnating global carbon intensity of electricity and the way forward," Energy Policy, Elsevier, vol. 113(C), pages 149-156.
    7. Song, Feng & Yu, Zichao & Zhuang, Weiting & Lu, Ao, 2021. "The institutional logic of wind energy integration: What can China learn from the United States to reduce wind curtailment?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    8. Libo Zhang & Qian Du & Dequn Zhou, 2021. "Grid Parity Analysis of China’s Centralized Photovoltaic Generation under Multiple Uncertainties," Energies, MDPI, vol. 14(7), pages 1-19, March.
    9. Cheng-Yih Hong & Hsiu-Ching Chang, 2019. "Comparing the Impact of Wind Power and Solar Power Investment on Industrial Development: Application of Dynamic Energy Industry-related Models," International Journal of Energy Economics and Policy, Econjournals, vol. 9(6), pages 38-44.
    10. Jiansheng You & Guohan Ding & Liyuan Zhang, 2022. "Heterogeneous Dynamic Correlation Research among Industrial Structure Distortion, Two-Way FDI and Carbon Emission Intensity in China," Sustainability, MDPI, vol. 14(15), pages 1-23, July.
    11. Kaivo-oja, J. & Luukkanen, J. & Panula-Ontto, J. & Vehmas, J. & Chen, Y. & Mikkonen, S. & Auffermann, B., 2014. "Are structural change and modernisation leading to convergence in the CO2 economy? Decomposition analysis of China, EU and USA," Energy, Elsevier, vol. 72(C), pages 115-125.
    12. Wang, Miao & Feng, Chao, 2017. "Analysis of energy-related CO2 emissions in China’s mining industry: Evidence and policy implications," Resources Policy, Elsevier, vol. 53(C), pages 77-87.
    13. Xuankai Deng & Yanhua Yu & Yanfang Liu, 2015. "Effect of Construction Land Expansion on Energy-Related Carbon Emissions: Empirical Analysis of China and Its Provinces from 2001 to 2011," Energies, MDPI, vol. 8(6), pages 1-22, June.
    14. Cui, Qi & He, Ling & Han, Guoyi & Chen, Hao & Cao, Juanjuan, 2020. "Review on climate and water resource implications of reducing renewable power curtailment in China: A nexus perspective," Applied Energy, Elsevier, vol. 267(C).
    15. Xiaonan Wang & Licheng Wang & Jianping Chen & Shouting Zhang & Paolo Tarolli, 2020. "Assessment of the External Costs of Life Cycle of Coal: The Case Study of Southwestern China," Energies, MDPI, vol. 13(15), pages 1-26, August.
    16. Wang, Xiaolei & Lin, Boqiang, 2016. "How to reduce CO2 emissions in China׳s iron and steel industry," Renewable and Sustainable Energy Reviews, Elsevier, vol. 57(C), pages 1496-1505.
    17. Alassi, Abdulrahman & Bañales, Santiago & Ellabban, Omar & Adam, Grain & MacIver, Callum, 2019. "HVDC Transmission: Technology Review, Market Trends and Future Outlook," Renewable and Sustainable Energy Reviews, Elsevier, vol. 112(C), pages 530-554.
    18. Jinwoo Jeong & Heewon Shin & Hwachang Song & Byongjun Lee, 2018. "A Countermeasure for Preventing Flexibility Deficit under High-Level Penetration of Renewable Energies: A Robust Optimization Approach," Sustainability, MDPI, vol. 10(11), pages 1-16, November.
    19. Zheqi Yang & Xuming Dou & Yuqing Jiang & Pengfei Luo & Yu Ding & Baosheng Zhang & Xu Tang, 2022. "Tracking the CO 2 Emissions of China’s Coal Production via Global Supply Chains," Energies, MDPI, vol. 15(16), pages 1-10, August.
    20. Wen-Hsien Tsai & Shang-Yu Lai & Chu-Lun Hsieh, 2023. "Exploring the impact of different carbon emission cost models on corporate profitability," Annals of Operations Research, Springer, vol. 322(1), pages 41-74, March.

    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:gam:jsusta:v:12:y:2020:i:16:p:6582-:d:398939. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.