The effects of electricity substitution in Fujian: based on microdata survey
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The effects of electricity substitution in Fujian: based on microdata survey Peng Zheng1 · Lingling Zhu1 · Wei Lu1 · Xin Yao2 Received: 3 February 2020 / Accepted: 30 September 2020 © Springer Nature B.V. 2020
Abstract Electricity substitution refers to replacing fossil fuels by electricity in the consumption side. To figure out the actual ways of energy usage, we conduct field survey to obtain energy consumption data in Fujian, as well as potentials for electricity substitution. Based on these data, this paper provides a theoretical analysis for electricity substitution policy. We use the input–output model to estimate the effects of electricity substitution in Fujian during the period of 2016–2020. The results show electricity substitution can significantly increase total output of the power sector and reduce oil demand. Moreover, the electricity substitution policy can also help to control greenhouse gases and pollutants effectively. Replacing fossil fuels with clean electricity will be conducive to sustainable economic development. These findings will shed some light on the future policy of electricity substitution and energy structure change. Keywords Electricity substitution · Environmental pollution · Input–output model
1 Introduction China’s energy endowment is characterized by “rich in coal, poor in oil, and little in gas.” Therefore, coal is the most important part of energy production and consumption for a long time (Zhang et al. 2018). The extensive means of development in a long time have made the deterioration of environmental quality increasingly serious (Wang and Zhang 2019), and huge amount of fossil energy consumption (coal mainly) is the main reason for environmental pollution in China (Chai et al. 2019). Facing serious environmental problems and resource constraints, electricity substitution is popular to change the energy structure (Wu et al. 2019). The essence of electricity substitution is to expand power demand while reducing fossil fuel consumption. By implementing electricity substitution policies, the proportion of electricity consumption would be raised in terminal energy consumption and thus energy * Xin Yao [email protected] 1
State Grid Fujian Electric Power Co., Ltd., Fuzhou 350003, China
2
China Center for Energy Economics Research, School of Economics, Xiamen University, Xiamen 361005, China
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efficiency can be effectively improved (Liddle and Sadorsky 2017). Moreover, the electricity market seems over-supplied under the background of the new normal, and water, wind and solar electricity curtailment occur frequently in China (Cui et al. 2020). Electricity substitution is also conducive to clean energy consumption, thus optimizing energy structure and reducing the pollutant emissions (Zhang et al. 2013; Wang et al. 2019a, b). To promote electricity substitution, the government has issued a series of policies. In August 2013, the State Grid proposed the strategy of electricity substitution, which aims to replace fossil fuel with e
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