China's Carbon-Energy Policy and Asia's Energy Transition: Carbon Leakage, Relocation and Halos

China's carbon-energy policy has significant cross-country impacts, including foreign investments in coal power, aggressive exports of wind and solar power technologies, regional integration of electricity markets, and changes in industrial and trade structure. These policies can shape energy transitions in host countries, deter sustainable energy transitions in Asia, accelerate the relocation of power plants, and increase carbon leakage to Asia.

Format: Paperback / softback
Length: 292 pages
Publication date: 25 September 2023
Publisher: Taylor & Francis Ltd

China's carbon-energy policy has far-reaching cross-country impacts that shape energy transitions and investment patterns in host countries. Here are some key points to consider:

China's foreign investments in coal power plants: China has been a major investor in coal power plants worldwide, particularly in developing countries. These investments can have significant impacts on energy transitions in host countries. For example, countries that rely heavily on coal for electricity generation may face challenges in transitioning to cleaner energy sources, as they may need to invest in expensive infrastructure and technology to replace coal-fired power plants.

China's aggressive exports of wind and solar power technologies: China has been a leading exporter of wind and solar power technologies, which have helped to drive down the cost of renewable energy and make it more accessible to developing countries. However, these exports can also deter sustainable energy transitions in Asia. Some countries may prioritize the development of their own domestic renewable energy industries, which may compete with Chinese exports and slow down the adoption of clean energy.

Regional integration of electricity markets and inter-connectivity: Regional integration of electricity markets and inter-connectivity can accelerate the relocation of power plants rather than generate efficiency gain. For example, countries with excess renewable energy capacity may export it to neighboring countries through inter-connectivity, while countries with energy shortages may import energy from elsewhere. This can help to balance energy supply and demand across regions and promote sustainable energy transitions.

China's change in industrial and trade structure: China's shift towards a more service-oriented economy and away from manufacturing has led to an increase in carbon leakage to Asia. As China's economy grows, it produces more goods and services that are exported to other countries, which increases carbon emissions. This can have significant impacts on air quality and climate change in Asia, particularly in countries that are heavily dependent on Chinese imports.

To address these cross-country impacts, China and other countries need to work together to promote sustainable energy transitions. This may include policies that encourage investment in renewable energy, promote energy efficiency, and support the development of domestic renewable energy industries. Regional integration of electricity markets and inter-connectivity can also help to balance energy supply and demand across regions and promote sustainable energy transitions.

In conclusion, China's carbon-energy policy has far-reaching cross-country impacts that shape energy transitions and investment patterns in host countries. By promoting sustainable energy transitions and working together to address these impacts, China and other countries can help to create a more sustainable and equitable energy future for all.

Weight: 453g
Dimension: 234 x 156 (mm)
ISBN-13: 9781032041896