Carbon emission flow in the power industry and provincial CO2 emissions: Evidence from cross-provincial secondary energy trading in China

Abstract

The accurate calculation of CO2 emissions in every province in China is the basis for developing regional energy policies. There is a huge fossil-fuel reserve and production capacity in western China, whereas their underdeveloped social and economic status means that there is lower demand. The more developed eastern coastal regions of China show dynamic economic momentum and, hence, higher energy demand. Based on the carbon emission flows in network theory, this paper proposes an approach to recalculate provincial CO2 emissions from the perspective of secondary energy consumption. This approach attributes CO2 emissions to final energy consumers after considering cross-provincial secondary energy trading, especially cross-provincial electric power trading in the regional power grid. Given the uneven distribution of energy resources and the imbalance of energy consumption among regions, cross-provincial secondary energy trading in China is significant, especially in the power industry. By adopting the approach proposed in this paper, the provincial carbon intensity and the corresponding energy policy can be modified to make energy end users pay rather than the primary producer.