Nexus of energy saving and air quality in China's energy industries during the 12th Five Year Period

Available online at www.sciencedirect.com

ScienceDirect Energy Procedia 105 (2017) 3824 – 3829

The 8th International Conference on Applied Energy – ICAE2016

Nexus of energy saving and air quality in China’s energy industries during the 12th Five Year Period Wenhuan Wanga, Qiming Lia, Yiping Loua, Xiaoguang Yanga,b* a

School of Business Administration, China University of Petroleum, No.18 Fuxue Road, Changping District, Beijing, 102249, China b Academic of Mathematic and System Science, CAS, No.55 Zhongguancun East Road, Haidian District, Beijing, 100190, China

Abstract

Energy consumption and air quality have become two major factors limiting the sustainable development in China. Energy efficiency and air quality improvement are critical for the healthy growth of China’s economy. Few studies have investigated the relationship between energy-saving and air quality. This study analyzes the nexus of energy-saving and air quality in three Chinese energy sectors. Coefficients that characterize the relationship between energy consumption and waste gas emission are estimated by input-output method. Then, the air quality-improving effects associated with the enforcement of energy-saving policies in energy sectors are calculated for each year in the 12 th Five Year Plan, namely from 2010 to 2014. The results show: (1) Only the power sector has achieved reducing waste gas emission, while coal sector and oil sector haven’t. (2) For coal sector and oil sector, most of the waste gas emission is due to using the intermediate products which produced by high emitting sectors, while in power sector, waste gas emission is due to the direct emission during electricity generation. © 2017 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license © 2016 The Authors. Published by Elsevier Ltd. (http://creativecommons.org/licenses/by-nc-nd/4.0/). Selection and/or peer-review under responsibility of ICAE Peer-review under responsibility of the scientific committee of the 8th International Conference on Applied Energy.

Keywords: energy saving , air quality, input-output, complete emission reduction, direction emission reduciton

1. Introduction Energy and air quality have become two major factors limiting sustainable development in China. China is making consecutive effort to save energy and improve air quality. In the 12th Five Year Plan, China sets goals to reduce energy consumption per unit of GDP by 16%, and to reduce SO2 and NOx by

* Corresponding author. Tel.: +86-10-89733124; fax: +86-10-89733742 E-mail address: [email protected].

1876-6102 © 2017 The Authors. Published by Elsevier Ltd. This is an open access article under the CC BY-NC-ND license (http://creativecommons.org/licenses/by-nc-nd/4.0/). Peer-review under responsibility of the scientific committee of the 8th International Conference on Applied Energy. doi:10.1016/j.egypro.2017.03.894

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thi8% and 10% respectively. Energy industries are major industries for energy consumption and waste air emission. It is time to evaluate the synergy effect of energy-saving on air quality in the industries. But the existing studies in this area mainly focus on air pollution issue and energy consumption related to the air pollution influence factors[1-5]. Some studies focus on energy synergy effect[6-8], but few of them can quantize the nexus between energy saving and the air quality improving. In this study, we quantitatively analyze the relationship between the energy consumption and air quality using input-output method. We try to figure out the performance of energy production sectors on energy saving and waste gas emission reduction. 2. Analytical Framework 2.1. Methodology The input-output model which is useful for analysing the economic relationship of linkages among sectors of an economy was developed by Wassily Leonife [10] in the 1930s. The direct consumption coefficient stands for producing one unit of product in sector j will consume the quantity of products made by sector i , which can be calculated in Equation (1):

aij So, assuming

xij xj

(i, j 1, 2,..., n)

(1)

ei is the direct waste gas emission coefficient per sector i output, this coefficient is

expressed by Eq. (2)

ei Where

Ei

Xi

(2)

Ei is the direct waste gas emission emitted by sector i , X i is the total output of sector i , and the

direct waste gas emission coefficient

ei consists of the direct waste gas emission 1u n matrix E.

The complete consumption coefficient is expressed in matrix from by (3)

B

A( I  A)1

(3)

-1

Where, (I-A) is called Leontief inverse matrix (key matrix). Bring direct waste gas emission coefficient bring into Eq. (3) C =E ( I  A)1 And the quantity of energy saving P can be expressed as follow: Pi

( EI i  EIi 1 )Yi

(4) (5)

EI i means energy intensity, Yi is the yield of energy production sector, and Pi is the quantity of energy saving, and i stands for 2010, 2011, 2012, 2013, 2014. Where,

Finally, the embodied waste gas emission reduction[9] is expressed by Eq. (6) S CP Where P is the final demand and E ( I 2.2 Data

1

 A) is the complete waste gas emission coefficient matrix.

(6)

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The input-output method provides interdepartmental relationship. In this research, we use the InputOutput table of China (2012). Other data is collected from the National Bureau Statistics. 3. Results and Discussion 3.1. The energy saving in energy production sector The energy intensity designates energy consumption of per unit output of energy productions sector. Energy saving is calculated through Eq. (5). The energy intensity, energy intensity improving, and energy saving is showed in Table 1 and 2. Coal sector (which is short for “mining and washing of coal sector”) is the worst performer in energy intensity improving because it didn’t achieve improving energy intensity in most year(Table 1). At the same time, it doesn’t achieve energy saving for the three types of energy in 12th Five Year period. It may because coal mining is more difficult than ever before. It needs more technology, equipment, and energy to be invested in mining and washing the coal. And sharing the similar reason, oil sector (which is short for “extraction of petroleum and natural gas sector”) doesn’t achieve saving power consumption. Power sector (which is short for “production and distribution of electric power and heat power sector”) is the only one achieved energy saving in the three types of energy. 3.2. The waste gas emission coefficient The direct and complete waste gas emission coefficient is calculated for energy production sectors (Table 3). According to Table 3, for coal sector and oil sector, most of the waste gas emission is due to using the intermediate products which produced by high emitting sectors, while in power sector, waste gas emission is due to the direct emission during electricity generation. 3.3. Air quality-improving synergy effects of energy-saving Combining the energy-saving performance of the energy production sectors (Table 2) with its waste gas emission coefficients (Table 3), the reduction of waste gas emission of each energy production sector was obtained in Table 4. The direct and complete waste gas emission reduction were calculated through Eq. (7). During the 12th Five Year period, only power sector has achieved reducing waste gas emission, while coal sector and oil sector haven’t. Because coal sector doesn’t achieve the energy saving, so there is no energy-air quality nexus in this sector. Even though oil sector has achieved the coal and so oil & gas consumption do, the direct and complete waste gas emission coefficient in power sector is 136 and 20 times than oil sector respectively, and 933 and 121 times than coal sector respectively. The waste gas emission per unit production in power sector is much bigger than the other two sectors. So it doesn’t achieve waste gas emission reduction in this sector. And the power sector has become the only energy production sector to achieve waste gas reduction.

Table 1 Energy intensity and improving in energy production sectors during the 12 th Five Year period Energy production sector Mining and Washing of Coal

Coal (104t/104t) Oil and Gas (104t/104t) Power (108kwh/104t) Coal (104t/104t) Oil and Gas (104t/104t) Power (108kwh/104t) Coal (104t /108kwh) Oil and gas (104t /108kwh) Power (108kwh/108kwh)

Energy intensity improving

2014

2013

2012

2011

2010

2014

2013

2012

2011

2014

0.092

0.093

0.066

0.070

0.068

-0.00059

0.026207

-0.0037

0.0025

-0.00059

0.00070

0.00065

0.00063

0.00066

0.00049

5.56E-05

2.18E-05

-3.3E-05

0.00017

5.56E-05

0.0024

0.0024

0.0022

0.0023

0.0022

2.07E-05

0.00018

-1E-04

0.00014

2.07E-05

0.0059

0.015

0.016

0.018954

0.020

-0.0092

-0.00063

-0.0032

-0.00057

-0.0092

0.059

0.057

0.056

0.062

0.065

0.0010

0.0015

-0.0056

-0.0032

0.0010

0.013

0.013

0.013

0.013

0.012

0.00014

-5.5E-05

0.00036

0.00063

0.00014

4.13

4.47

4.48

4.45

4.54

-0.34

-0.0066

0.023

-0.083

-0.34

0.057

0.054

0.055

0.054

0.056

0.0031

-0.00043

0.00067

-0.0022

0.0031

0.17

0.17

0.17

0.17

0.17

0.0017

0.00046

0.001 2

-0.00083

0.0017

Table 2 Energy saving in energy production sectors during the 12 th Five Year period Energy production sector Mining and Washing of Coal Extraction of Petroleum and Natural Gas Production and Distribution of Electric Power and Heat Power

Energy type Coal/(104t) Oil and Gas/(104t) Power/(108kwh) Coal/(104t) Oil and Gas/(104t) Power/(108kwh) Coal/(104t) Oil and Gas/(104t) Power/(108kwh)

Yield 2014

2013

2012

2011

387391.9

397432.2

394512.8

351600

32858.47

31870.39

30392.26

29530.62

42686.5

42470.1

38928.1

38337

Energy saving 2012 2011 -1472.68 894.9281

2014 -229.924

2013 10415.39

Total 9607.715

21.52844 8.035546 -301.067

8.664685 70.12435 -19.9921

-13.078 -39.3365 -98.1614

60.8944 47.70444 -16.8177

78.00951 86.52782 -436.038

33.09233 4.773518 -14718.1

47.96186 -1.7488 -281.731

-170.08 11.06385 896.607

-94.9949 18.56353 -3183.21

-184.021 32.6521 -17286.4

132.3275 70.56756

-18.1759 19.4056

26.02902 -45.9173

-84.7009 -31.8972

55.47975 12.15871

Wenhuan Wang et al. / Energy Procedia 105 (2017) 3824 – 3829

Extraction of Petroleum and Natural Gas Production and Distributio n of Electric Power and Heat Power

Energy intensity Energy type

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Table 3 Waste gas emission coefficients for energy production sectors Complete waste Direct waste gas Proportion gas emission emission Energy production sector Ĺ=ĸ/ķ coefficientķ coefficientĸ Mining and Washing of Coal(104m3/t) 0.0054 0.07 7.66 Extraction of Petroleum and Natural 0.037 0.42 8.76 Gas(104m3/t) Production and Distribution of Electric 5.04 8.48 59.45 Power and Heat Power(m3/kwh) Table 4 Air quality-improving synergy effects of energy-saving during the 12th Five Year Plan 108m3 Energy sector

Energy type

Production and Distribution of Electric Power and Heat Power

Coal Oil and Gas Power Coal Oil and Gas Power Coal Oil and Gas Power

Energy sector

Energy type

Mining and Washing of Coal Extraction of Petroleum and Natural Gas

Mining and Washing of Coal Extraction of Petroleum and Natural Gas Production and Distribution of Electric Power and Heat Power

Coal Oil and Gas Power Coal Oil and Gas Power Coal Oil and Gas Power

2014 -1.24 0.80 40.50 -1.63 1.22 24.06 -79.48 4.90 55.67 2014 -16.09 9.04 68.14 -21.07 13.90 40.48 -1030.27 55.58 598.41

Direct waste gas emission reduction 2013 2012 2011 Total 56.24 -7.95 4.83 51.89 0.32 -0.48 2.25 2.89 353.43 -198.26 240.43 436.10 -0.11 -0.53 -0.09 -2.35 1.78 -6.29 -3.51 -6.81 -8.81 55.76 93.56 164.57 -1.52 4.84 -17.19 -93.35 -0.67 0.96 -3.13 2.05 97.80 -231.42 -160.76 61.28 Complete waste gas emission reduction 2013 2012 2011 Total 729.08 -103.09 62.64 672.54 3.64 -5.49 25.58 32.76 594.65 -333.57 404.53 733.76 -1.40 -6.87 -1.18 -30.52 20.14 -71.43 -39.90 -77.29 -14.83 93.82 157.42 276.89 -19.72 62.76 -222.83 -1210.05 -7.63 10.93 -35.57 23.30 164.56 -389.38 -270.49 103.11

Total 490.87 155.4 -30.01 Total 1439.06 169.08

-1083.64

4. Conclusion Only power sector has achieved reducing waste gas emission, while coal sector and oil sector haven’t. Because of the limited resource reserve, it is more difficult to mine these resource than before. More and more energy will be used in order to drill for oil & gas or coal. This will lead to the increasing of the waste gas emission in coal sector and oil sector. For coal sector and oil sector, most of the waste gas emission is due to using the intermediate products which produced by high emitting sectors, while in power sector, waste gas emission is due to the direct emission during electricity generation. The government should encourage power sector to continue air quality-improving synergy effects of energy saving. At the same time, coal sector and oil sector should pay more attention on energy intensity and synergy effect, especially focusing on the reducing the intermediate products.

Wenhuan Wang et al. / Energy Procedia 105 (2017) 3824 – 3829

5. Copyright Authors keep full copyright over papers published in Energy Procedia Acknowledgements The research is also supported by the open fund of Key Laboratory of Petrochemical Resource Processing and Process Intensification Technology, Nanning 530004, China. The authors thank the scholars in Chinese Academy of Sciences and China University of Petroleum for their valuable suggestions. References [1] J. Zhou, X.Q. Mao, T. Hu, A. Zeng, Y.K. Xing, Gabriel Corsetti. Implications of the 11th and 12th Five-Year Plans for energy conservation and CO2 and air pollutants reduction: a case study from the city of Urumqi, China. Journal of Cleaner Production 112(2016) 1767-1777 [2] Yansui Liu, Yang Zhou, Wenxiang Wu. Assessing the impact of population, income and technology on energy consumption and industrial pollutant emissions in China. Applied Energy. 155(2015)904-917. [3] Lining Wang, Pralit L. Patel, Sha Yu, Bo Liu, Jeff McLeod, Leon E. Clarke, Wenying Chen. Win-Win strategies to promote air pollutant control policies and non-fossil energy target regulation in China. Applied Energy. 163(2016)244-253. [4] Yanxia Zhang, Haikun Wang, Sai Liang, Ming Xu, Qiang Zhang, Hongyan Zhao, Jun Bi. A dual strategy for controlling energy consumption and air pollution in China’s metropolis of Beijing. Energy. (2015) 294-303. [5] Jianjun Zhang, Meichen Fu, Yuhuan Geng, Jin Tao. Energy saving and emission reduction: A project of coal-resource integration in Shanxi Province, China. Energy Policy 39(2011)3029-3032. [6] Yuan Chang, Runze Huang, Robert J. Ries, Eric Masanet. Shale-to-well energy use and air pollutant emissions of shale gas production in China. Applied Energy. 125(2014) 147-157. [7] Murat Kcukvar, Bunyamin Cansev, Gokhan Egilmez, Nuri C. Onat, Hamidreza Samadi. Energy-climate-manufacturing nexus: New insights from the regional and global supply chains of manufacturing industries. Applied Energy.xxx(2016) xxx-xxx. [8] Shaohui Zhang, Ernst Worrell, Wina Crijns-Graus. Synergy of air pollutants and greenhouse gas emissions of Chinese industries: Acritical assessment of energy models. Energy. 93(2015)2436-2450. [9] Alun Gu, Fei Teng, Yu Wang. China energy-water nexus: Assessing the water-saving synergy effects of energy-saving policies during the eleventh Five-year Plan. Energy Conversion and Management 85(2014)630-637. [10] Leontief W. Quantitative input-output relations in the economic system of the U.S. review of economies and statistics; 1936.

Biography Wenhuan Wang and Qiming Li are Ph.D. students in School of Business Administration of China University of Petroleum-Beijing. Yiping Lou is a master student in School of Business Administration of China University of Petroleum-Beijing. And Xiaoguang Yang is a professor in School of Business Administration of China University of PetroleumBeijing and professor in Academy of Mathematics and Systems Science, China’s Academy of Sciences.

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