IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i8p4768-d795057.html
   My bibliography  Save this article

To Adopt CCU Technology or Not? An Evolutionary Game between Local Governments and Coal-Fired Power Plants

Author

Listed:
  • Shuai Nie

    (Guangzhou Institute of Energy Conservation, Chinese Academy of Sciences, Guangzhou 510640, China
    The Key Laboratory of Renewable Energy, Chinese Academy of Sciences, Guangzhou 510640, China
    Guangdong Provincial Key Laboratory of New and Renewable Energy Research and Development China, Guangzhou 510640, China
    University of Chinese Academy of Sciences, Beijing 100049, China)

  • Guotian Cai

    (Guangzhou Institute of Energy Conservation, Chinese Academy of Sciences, Guangzhou 510640, China
    The Key Laboratory of Renewable Energy, Chinese Academy of Sciences, Guangzhou 510640, China
    Guangdong Provincial Key Laboratory of New and Renewable Energy Research and Development China, Guangzhou 510640, China
    University of Chinese Academy of Sciences, Beijing 100049, China)

  • Yixuan Li

    (School of Journalism, Communication University of China, Beijing 100024, China)

  • Yushu Chen

    (Guangzhou Institute of Energy Conservation, Chinese Academy of Sciences, Guangzhou 510640, China
    The Key Laboratory of Renewable Energy, Chinese Academy of Sciences, Guangzhou 510640, China
    Guangdong Provincial Key Laboratory of New and Renewable Energy Research and Development China, Guangzhou 510640, China
    University of Chinese Academy of Sciences, Beijing 100049, China)

  • Ruxue Bai

    (Guangzhou Institute of Energy Conservation, Chinese Academy of Sciences, Guangzhou 510640, China
    The Key Laboratory of Renewable Energy, Chinese Academy of Sciences, Guangzhou 510640, China
    Guangdong Provincial Key Laboratory of New and Renewable Energy Research and Development China, Guangzhou 510640, China
    University of Chinese Academy of Sciences, Beijing 100049, China)

  • Liping Gao

    (Guangzhou Institute of Energy Conservation, Chinese Academy of Sciences, Guangzhou 510640, China
    The Key Laboratory of Renewable Energy, Chinese Academy of Sciences, Guangzhou 510640, China
    Guangdong Provincial Key Laboratory of New and Renewable Energy Research and Development China, Guangzhou 510640, China
    University of Chinese Academy of Sciences, Beijing 100049, China)

  • Xiaoyu Chen

    (Guangzhou Institute of Energy Conservation, Chinese Academy of Sciences, Guangzhou 510640, China
    The Key Laboratory of Renewable Energy, Chinese Academy of Sciences, Guangzhou 510640, China
    Guangdong Provincial Key Laboratory of New and Renewable Energy Research and Development China, Guangzhou 510640, China
    School of Energy Science and Engineering, University of Science and Technology of China, Hefei 230026, China)

Abstract

Carbon dioxide capture and utilization (CCU) technology is a significant means by which China can achieve its ambitious carbon neutrality goal. It is necessary to explore the behavioral strategies of relevant companies in adopting CCU technology. In this paper, an evolutionary game model is established in order to analyze the interaction process and evolution direction of local governments and coal-fired power plants. We develop a replicator dynamic system and analyze the stability of the system under different conditions. Based on numerical simulation, we analyze the impact of key parameters on the strategies of stakeholders. The simulation results show that the unit prices of hydrogen and carbon dioxide derivatives have the most significant impact: when the unit price of hydrogen decreases to 15.9 RMB/kg or the unit price of carbon dioxide derivatives increases to 3.4 RMB/kg, the evolutionary stabilization strategy of the system changes and power plants shift to adopt CCU technology. The results of this paper suggest that local governments should provide relevant support policies and incentives for CCU technology deployment, as well as focusing on the synergistic development of CCU technology and renewable energy hydrogen production technology.

Suggested Citation

  • Shuai Nie & Guotian Cai & Yixuan Li & Yushu Chen & Ruxue Bai & Liping Gao & Xiaoyu Chen, 2022. "To Adopt CCU Technology or Not? An Evolutionary Game between Local Governments and Coal-Fired Power Plants," Sustainability, MDPI, vol. 14(8), pages 1-18, April.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:8:p:4768-:d:795057
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/8/4768/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/8/4768/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Wieland Hoppe & Nils Thonemann & Stefan Bringezu, 2018. "Life Cycle Assessment of Carbon Dioxide–Based Production of Methane and Methanol and Derived Polymers," Journal of Industrial Ecology, Yale University, vol. 22(2), pages 327-340, April.
    2. Lu Lu & Jeremy S. Guest & Catherine A. Peters & Xiuping Zhu & Greg H. Rau & Zhiyong Jason Ren, 2018. "Wastewater treatment for carbon capture and utilization," Nature Sustainability, Nature, vol. 1(12), pages 750-758, December.
    3. He, Jiaxin & Li, Jingyi & Zhao, Daiqing & Chen, Xing, 2022. "Does oil price affect corporate innovation? Evidence from new energy vehicle enterprises in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    4. Bruhn, Thomas & Naims, Henriette & Olfe-Kräutlein, Barbara, 2016. "Separating the debate on CO2 utilisation from carbon capture and storage," Environmental Science & Policy, Elsevier, vol. 60(C), pages 38-43.
    5. Bowen, Frances, 2011. "Carbon capture and storage as a corporate technology strategy challenge," Energy Policy, Elsevier, vol. 39(5), pages 2256-2264, May.
    6. Lei Gao & Zhen-Yu Zhao, 2020. "The Evolutionary Game of Stakeholders’ Coordination Mechanism of New Energy Power Construction PPP Project: A China Case," Sustainability, MDPI, vol. 12(3), pages 1-24, February.
    7. Shan, Haiyan & Yang, Junliang, 2019. "Sustainability of photovoltaic poverty alleviation in China: An evolutionary game between stakeholders," Energy, Elsevier, vol. 181(C), pages 264-280.
    8. Friedman, Daniel, 1991. "Evolutionary Games in Economics," Econometrica, Econometric Society, vol. 59(3), pages 637-666, May.
    9. Zhao, Tian & Liu, Zhixin, 2019. "A novel analysis of carbon capture and storage (CCS) technology adoption: An evolutionary game model between stakeholders," Energy, Elsevier, vol. 189(C).
    10. Jiang, Kai & Ashworth, Peta & Zhang, Shiyi & Liang, Xi & Sun, Yan & Angus, Daniel, 2020. "China's carbon capture, utilization and storage (CCUS) policy: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 119(C).
    11. Wanting Chen & Zhi-Hua Hu, 2020. "Analysis of Multi-Stakeholders’ Behavioral Strategies Considering Public Participation under Carbon Taxes and Subsidies: An Evolutionary Game Approach," Sustainability, MDPI, vol. 12(3), pages 1-26, January.
    12. Psarras, Peter C. & Comello, Stephen & Bains, Praveen & Charoensawadpong, Panunya & Reichelstein, Stefan J. & Wilcox, Jennifer, 2017. "Carbon Capture and Utilization in the Industrial Sector," Research Papers repec:ecl:stabus:3493, Stanford University, Graduate School of Business.
    13. Mikulčić, Hrvoje & Ridjan Skov, Iva & Dominković, Dominik Franjo & Wan Alwi, Sharifah Rafidah & Manan, Zainuddin Abdul & Tan, Raymond & Duić, Neven & Hidayah Mohamad, Siti Nur & Wang, Xuebin, 2019. "Flexible Carbon Capture and Utilization technologies in future energy systems and the utilization pathways of captured CO2," Renewable and Sustainable Energy Reviews, Elsevier, vol. 114(C), pages 1-1.
    14. Chen, Qianqian & Gu, Yu & Tang, Zhiyong & Wei, Wei & Sun, Yuhan, 2018. "Assessment of low-carbon iron and steel production with CO2 recycling and utilization technologies: A case study in China," Applied Energy, Elsevier, vol. 220(C), pages 192-207.
    15. Wang, Gang & Chao, Yuechao & Chen, Zeshao, 2021. "Promoting developments of hydrogen powered vehicle and solar PV hydrogen production in China: A study based on evolutionary game theory method," Energy, Elsevier, vol. 237(C).
    16. Chen, Yanyan, 2022. "Does political turnover affect corporate investment? Evidence from China," Emerging Markets Review, Elsevier, vol. 51(PA).
    17. Fan, Jing-Li & Yu, Pengwei & Li, Kai & Xu, Mao & Zhang, Xian, 2022. "A levelized cost of hydrogen (LCOH) comparison of coal-to-hydrogen with CCS and water electrolysis powered by renewable energy in China," Energy, Elsevier, vol. 242(C).
    18. Jia, Zhijie & Lin, Boqiang, 2021. "How to achieve the first step of the carbon-neutrality 2060 target in China: The coal substitution perspective," Energy, Elsevier, vol. 233(C).
    19. Ravikumar, Dwarakanath & Keoleian, Gregory & Miller, Shelie, 2020. "The environmental opportunity cost of using renewable energy for carbon capture and utilization for methanol production," Applied Energy, Elsevier, vol. 279(C).
    20. Ji, Shou-feng & Zhao, Dan & Luo, Rong-juan, 2019. "Evolutionary game analysis on local governments and manufacturers' behavioral strategies: Impact of phasing out subsidies for new energy vehicles," Energy, Elsevier, vol. 189(C).
    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. Min Zhang & Yan Qiu & Chunling Li & Tao Cui & Mingxing Yang & Jun Yan & Wu Yang, 2023. "A Habitable Earth and Carbon Neutrality: Mission and Challenges Facing Resources and the Environment in China—An Overview," IJERPH, MDPI, vol. 20(2), pages 1-35, January.
    2. Sun, Bo & Fan, Boyang & Wu, Chun & Xie, Jingdong, 2024. "Exploring incentive mechanisms for the CCUS project in China's coal-fired power plants: An option-game approach," Energy, Elsevier, vol. 288(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. Liu, Jicheng & Sun, Jiakang & Yuan, Hanying & Su, Yihan & Feng, Shuxian & Lu, Chaoran, 2022. "Behavior analysis of photovoltaic-storage-use value chain game evolution in blockchain environment," Energy, Elsevier, vol. 260(C).
    2. Wang, Yadong & Mao, Jinqi & Chen, Fan & Wang, Delu, 2022. "Uncovering the dynamics and uncertainties of substituting coal power with renewable energy resources," Renewable Energy, Elsevier, vol. 193(C), pages 669-686.
    3. Zhao, Tian & Liu, Zhixin, 2019. "A novel analysis of carbon capture and storage (CCS) technology adoption: An evolutionary game model between stakeholders," Energy, Elsevier, vol. 189(C).
    4. Linlin Wang & Zhuo Li & Chengcheng Yuan & Liming Liu, 2024. "Exploration on the reasons for low efficiency of arable land protection policy in China: an evolutionary game theoretic model," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 25173-25198, October.
    5. Wang, Gang & Bai, Long & Chao, Yuechao & Chen, Zeshao, 2023. "How do solar photovoltaic and wind power promote the joint poverty alleviation and clean energy development: An evolutionary game theoretic study," Renewable Energy, Elsevier, vol. 218(C).
    6. Liu, Yang & Cui, Mengying & Gao, Xubin, 2023. "Building up scrap steel bases for perfecting scrap steel industry chain in China: An evolutionary game perspective," Energy, Elsevier, vol. 278(C).
    7. Wei Wang & Yanbin Li & Jinzhong Li & Yun Li, 2024. "Can pumped-storage power stations stimulate rural revitalization? Evidence from the four-party evolutionary game," Journal of Evolutionary Economics, Springer, vol. 34(3), pages 595-645, July.
    8. Shuangming Yin & Yansong Li & Xiaojuan Chen & Woraphon Yamaka & Jianxu Liu, 2024. "Collaborative Digital Governance for Sustainable Rural Development in China: An Evolutionary Game Approach," Agriculture, MDPI, vol. 14(9), pages 1-23, September.
    9. Yan Chen & Menglin Zhan & Yue Liu, 2023. "Promoting the Development of China’s New-Energy Vehicle Industry in the Post-Subsidy Era: A Study Based on the Evolutionary Game Theory Method," Energies, MDPI, vol. 16(15), pages 1-15, August.
    10. Li, Qingshan & Wang, Chenfang & Wang, Chunmei & Zhou, Taotao & Zhang, Xianwen & Zhang, Yangjun & Zhuge, Weilin & Sun, Li, 2023. "Comparison of organic coolants for boiling cooling of proton exchange membrane fuel cell," Energy, Elsevier, vol. 266(C).
    11. Dongpu Fu & Jiarui Sun & Cuiyou Yao & Fulei Shi, 2024. "The influence of policy incentives on the diffusion of battery-swapping taxis and stations: a coupled evolutionary game model in complex networks," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 26(10), pages 26945-26969, October.
    12. Yingxia Xue & Fang Liu & Guangbin Wang & Jungang Shao, 2023. "Research on Strategy Evolution of Contractor and Resident in Construction Stage of Old Community Renovation Project," Sustainability, MDPI, vol. 15(2), pages 1-20, January.
    13. Zhao, Dan & Ji, Shou-feng & Wang, He-ping & Jiang, Li-wen, 2021. "How do government subsidies promote new energy vehicle diffusion in the complex network context? A three-stage evolutionary game model," Energy, Elsevier, vol. 230(C).
    14. Ye Gao & Renfu Jia & Yi Yao & Jiahui Xu, 2022. "Evolutionary Game Theory and the Simulation of Green Building Development Based on Dynamic Government Subsidies," Sustainability, MDPI, vol. 14(12), pages 1-18, June.
    15. Lefeng Cheng & Pan Peng & Wentian Lu & Pengrong Huang & Yang Chen, 2024. "Study of Flexibility Transformation in Thermal Power Enterprises under Multi-Factor Drivers: Application of Complex-Network Evolutionary Game Theory," Mathematics, MDPI, vol. 12(16), pages 1-23, August.
    16. Guo, Kaiyuan & Huang, Chendan & Zhang, Zhenjun & Diaz Paiz, Ana Yamileth & Chen, Weiming, 2024. "The impact of new energy industry on environmental and economic benefits: Evidence from China," Energy, Elsevier, vol. 304(C).
    17. Jiayang Xu & Jian Cao & Yunfei Wang & Xiangrong Shi & Jiayun Zeng, 2020. "Evolutionary Game on Government Regulation and Green Supply Chain Decision-Making," Energies, MDPI, vol. 13(3), pages 1-25, February.
    18. Buchspies, Benedikt & Kaltschmitt, Martin & Neuling, Ulf, 2020. "Potential changes in GHG emissions arising from the introduction of biorefineries combining biofuel and electrofuel production within the European Union – A location specific assessment," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    19. Yang, Kun & Wang, Wan & Xiong, Wan, 2021. "Promoting the sustainable development of infrastructure projects through responsible innovation: An evolutionary game analysis," Utilities Policy, Elsevier, vol. 70(C).
    20. Li, Junqiang & Ren, Hao & Wang, Mingyue, 2021. "How to escape the dilemma of charging infrastructure construction? A multi-sectorial stochastic evolutionary game model," Energy, Elsevier, vol. 231(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:gam:jsusta:v:14:y:2022:i:8:p:4768-:d:795057. 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.