Abstract

With increasing pressure on resources and environment, sustainable development is becoming more and more important. As the largest energy consumer in the world, China needs to take measures to achieve energy transformation more urgently both from supply and demand side, which is of great significance for sustainable development and achieving carbon emissions target. In recent years, the capital city Beijing has also made great efforts to promote the replacement of electric energy in residential heating, manufacturing, transportation, power supply and consumption. In order to explore driving forces of total power consumption in Beijing`s final demand sectors, this paper decomposes the factors into industrial electricity substitution effect, industrial energy intensity effect, industrial structure effect, economic scale effect, population structure effect, residential electricity substitution effect, residential energy intensity effect and population size effect based on the logarithmic mean Divisia index (LMDI) decomposition method. The decomposition results show that the industrial electricity substitution effect made the largest contribution to increase power consumption in Beijing’s final energy consumption sector, followed by economic scale effect, residential energy intensity effect, population scale effect and residential electricity substitution effect, and other`s effect does the opposite. Finally, seven different scenarios are set up to forecast the future power consumption of Beijing`s final sectors based on the long-term energy alternative planning model (LEAP), which reveals the impact of energy efficiency improvement and electricity substitution polices on electricity consumption in Beijing`s final energy consumption sectors.

Highlights

  • As the largest energy consumer in the world, China faces serious air pollution problems, such as smog appearing in many cities—mainly caused by coal burning and exhaust emissions of motor vehicles—while industrialization and urbanization are still rapidly advancing in the country [1]

  • Based on the additive logarithmic mean Divisia index (LMDI) decomposition method, the influencing factors of total power consumption are decomposed into two parts by using the formula (1) to formula (6), and the relevant economic, demographic and energy consumption data of Beijing from 2007 to 2017

  • From 2007 to 2017, the industrial electricity substitution effect, economic scale effect, residential electricity substitution effect, residential energy intensity effect and population scale effect played a significant role in increasing power consumption, whereas the industrial energy intensity effect, industrial structure effect and population structure effect decreased power consumption in Beijing’s final energy consumption sector

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Summary

Introduction

As the largest energy consumer in the world, China faces serious air pollution problems, such as smog appearing in many cities—mainly caused by coal burning and exhaust emissions of motor vehicles—while industrialization and urbanization are still rapidly advancing in the country [1]. It is urgent for china to take measures to achieve transformation of energy system from both supply and demand side, such as the energy structure upgrades from fossil fuels to renewables in energy supply sector and electricity substitution of end use sectors [2]. To reduce reliance on fossil fuels in end-use, the Chinese government has introduced a series of measures in some policy documents for the purpose of encouraging electrification, which covers numerous fields, such as residential heating, transportation, and industrial and agricultural production (National Development and Reform Commission, 2016a). The capital city of china have great population and energy consumption, which urgently need to take measures to mitigate the carbon emissions for its sustainable development [3]. Beijing has actively promoted electricity substitution in various fields to achieve energy transformation in demand side. Electricity substitution will be implemented actively in the few years

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