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Abstract Whilst a plethora of literature has viewed technological progress as one of the critical influencing factors in relation to energy consumption and CO 2 emissions, little effort has been made to identify the sectoral differences in the relationship between technological progress and CO 2 emissions. Thereby, this paper remedies the inadequacies in the extant literature by empirically investigating the impact of technological progress on CO 2 emissions, specifically taking into account its heterogeneous effect in various economic sectors. This paper first decomposes the effect of technological progress as taking place in heavy industry, in light industry, in construction industry, and in service industry. A panel quantile regression approach and a balanced city panel data model are then applied, covering the period 2001–2013 in China. The empirical results show that technological progress in heavy industry and light industry surprisingly facilitates a higher level of CO 2 emissions, despite its prominent contribution to energy efficiency improvement. Meanwhile, as distinct from the effect it shows in the heavy and light industries, technological progress in construction and service industries exerts a negative effect on CO 2 emissions. Additionally, this paper further discovers that the strength of the multiple impacts of technological progress also varies with the level of emitters. By studying the heterogeneous effect brought about by technological progress in different economic sectors and emitters, this paper provides a comprehensive understanding of the relationship between CO 2 emissions and technological progress. Highlights • The study considers the sectoral and scale heterogeneity of technological progress in relation to CO 2 emissions. • We apply a panel quantile regression approach to balanced city-level panel data. • Technological progress within different economic sectors exerts different effects on CO 2 emissions. • The role of technological progress in moderating energy intensity varies across emitters. [ABSTRACT FROM AUTHOR]

Abstract Resident satisfaction with governmental environmental protection is of great significance to environmental governance by the Chinese government. However, the impact of internet use on resident satisfaction with governmental environmental protection is complex, and the relevant empirical evidence is far from sufficient. Based on data from the Chinese Social Survey for 2013 and using OLS and ordered probit regressions, this study finds a significant negative relationship between internet use and resident satisfaction with governmental environmental protection. Further study suggests that an increase in different online content frequencies could reduce resident satisfaction with governmental environmental protection. Nevertheless, residents who are conservative or skeptical about internet information are more satisfied with the government's environmental protection. The conclusions of this study are consistent with the "negativity bias" theory, indicating that netizens focus greater attention on negative news related to environmental protection. Finally, this paper performs two analyses to ensure the robustness of the research results. First, considering the possible "self-selection" problem, this paper conducts a robustness test using the method of propensity score matching (PSM) and finds that the results are still consistent. Second, the sample is subdivided to analyse the regional differences in the impacts of internet use on resident satisfaction with governmental environmental protection. The results show that internet use has a significant negative influence on resident satisfaction with governmental environmental protection in eastern China, central China but has no significant effect in western China. In addition, the impact of internet use on urban resident satisfaction with governmental environmental protection is significantly greater than that of rural resident. Highlights • The effect of internet use on resident satisfaction with the governmental environmental protection is studied for China. • Internet use has significant negative impact on resident satisfaction with governmental environmental protection in China. • Residents who are skeptical about internet information are more satisfied with the governmental environmental protection. • Conclusions are consistent with "negativity bias theory", indicating that netizens pay more attention to negative news. [ABSTRACT FROM AUTHOR]

As a secondary energy, electricity is an important channel between original energy and energy consumers. Electricity price is a critical factor for the interests of all involvers in the electric power market. It also plays an important role for the sustainable development of energy and environment. Smart grid is a new conception proposed in recent years to improve the intelligent level and increase the efficiency of electric power system operation. Smart grid combines and integrates information technology, communication technology and intelligent control technology with tradition power system. To achieve the many objectives of smart grid, Demand response (DR), as an effective technique of demand side management (DSM), refers to the changes in electricity consumption behavior of users in response to the dynamic price or incentive rewards. Price based demand response (PBDR) is one of the two major DR programs. In this paper, we first introduce the pricing theories in economics, the pricing of electricity and the development of electricity pricing in China. Then, we present a detailed discussion on the PBDR strategies in the DSM of smart grid. Also, the research status of PBDR is reviewed. Finally, it gives a summary of the whole paper in the last Section. [ABSTRACT FROM AUTHOR]

Cities are the main carbon dioxide (CO 2 ) emitters in China, and it is important to explore both the characteristics and reduction potential of their CO 2 emissions. This paper calculates the industrial energy-related CO 2 emissions (IECEs) of 17 cities in China's Yangtze River Delta (YRD) region from 2005 to 2014 and analyses the driving factors of CO 2 emissions using the Logarithmic Mean Divisia Index (LMDI). In addition, this paper predicts the CO 2 reduction potential of this group of cities for the period from 2015 to 2020. The results show that (1) during the sample period, industrial CO 2 emissions in the studied cities increased by a factor of 1.61. Economic output is the greatest contributor, followed by population size. Energy intensity and energy structure are the two main emission mitigation factors; (2) the driving factors of CO 2 emissions in the group of cities exhibit distinct spatial characteristics, indicating that future analyses of cities in this area should have distinctly different foci; and (3) the forecasting results show that under moderate and aggressive scenarios, CO 2 emissions in the studied cities can be reduced by 281.59 Mt and 711.90 Mt, respectively, by 2020. [ABSTRACT FROM AUTHOR]

This paper investigates the impact of the inter-regional transmission grid capacity expansion on China’s power sector decarbonization from the energy portfolio, economic efficiency and environmental perspectives. The impact is quantified based on a cluster integer unit commitment model which renders it suitable for modeling large-scale power systems with a high computational performance. The results show that, first, the inter-regional transmission grid capacity expansion has obvious economic benefit in reducing the total variable generation costs, mainly due to the increased ability of transmitting coal power with low marginal generation costs and the reduction in non-served load. Second, the expansion has a very limited impact on reducing the curtailment of renewable generation by 2030, although the extent to which the expansion can mitigate the curtailment of renewable generation increases with the share of renewable power in the generation portfolio. Third, the expansion increases CO 2 emissions of the power supply in 2030 by around 2%, mainly because it facilitates more use of cheap yet low-efficiency coal generation in regions with low fuel prices. To better deliver the value of the inter-regional grid expansion for China’s power decarbonization, this paper proposes that: (1) the planning of the inter-regional and intra-regional grid development should be coordinated with the renewable power development; and (2) effective dispatch mechanisms which account for CO 2 emissions or generation efficiency across regions should be established. Additionally, the government plan of the inter-regional transmission capacity in 2030 is basically sufficient in enabling bulk power delivery and promoting renewable generation across regions. [ABSTRACT FROM AUTHOR]

This review paper examines pathways towards solar energy in China by examining two different solar energy technologies, namely solar photovoltaic (PV) and solar water heaters (SWH). The paper investigates these two case studies to understand how different pathways for low carbon innovation are promoted and challenged by China's changing financing and policy-making, and how they relate to changing practices among producers and consumers. The paper finds two distinct approaches to solar energy. Chinese solar PV is predominantly produced for the export market, relies on intellectual property-intensive technology and has received much financial and political support from the central and provincial governments. On the other side, solar water heaters are an indigenous Chinese technology that is found everywhere across China, especially in rural areas. They have developed from grass-roots levels to mass products with very little central government support. Although being largely absent from high-level discussions and policies, solar water heaters could contribute a lot to China's low carbon transitions that are driven at the local level. [ABSTRACT FROM AUTHOR]

In this paper we focus on understanding the rapid rise of the Chinese PV industry and its profound impact on the global PV industry. We investigate how it is possible that a nation that is still focusing on catching up in terms of industry, innovation and technology has been able to bring manufacturers from leading industrialized nations to their knees. This paper applies the framework of the Technological Innovation System (TIS), and also takes the context into account, in terms of the Chinese national innovation system (NIS) and the global PV TIS. It concludes that the rise of the Chinese PV TIS can be explained by the interaction of three context factors (the change in Chinese institutions, technology transfer, and the large European market) and specific PV TIS dynamics. The study empirically shows the importance of extending the national TIS studies by including the influences of context factors. [ABSTRACT FROM AUTHOR]

With important implications for global climate change mitigation, the development of a cap-and-trade emission trading scheme (ETS) in China is embedded in distinctive political, economic, and institutional contexts and has been attracting increasing attention in recent years. To offer a clear perspective on current research progress, this paper systematically reviews the recent literature on China’s ETS from three main aspects: mechanism design, policy and regional linkages, as well as impact assessment. The current research consensuses are summarized based upon detailed literature analyses and commentaries, and together with observations of international experience and China’s actual condition, the paper provides policy proposals for the development of China’s national ETS during 2016–2020. Finally, several important controversies in the current literature are discussed with regard to the practical demands of China’s ETS development. Five pressing topics that need to be further studied in the coming years are highlighted, including cap setting, allowance allocation among sectors and enterprises, carbon pricing, policy package and unified carbon market construction, as well as ex-ante and ex-post impact assessments. [ABSTRACT FROM AUTHOR]

Recognizing the industrial sector's high energy use and vast potential for energy saving, many national governments have established voluntary or negotiated agreements that set quantitative energy-saving targets for individual industrial enterprises. The most commonly used energy-saving targets worldwide are volume and energy intensity targets. Since 2006, the Chinese government has set mandatory, enterprise-level energy-saving targets in terms of the “amount of energy saved”; this represents a unique category that differs from both volume and energy intensity targets. Based on first-hand data collected at ten case enterprises, this paper represents one of the first attempts to verify the reliability of the amount of energy saved data reported by the Chinese government and to rigorously and systematically investigate the inherent weaknesses of the amount of energy saved targets through a comparison with the mainstream categories of energy-saving targets. The ten case enterprises reported four different types of amount of energy saved. While all of the case enterprises claimed full achievement of their amount of energy saved targets, four enterprises exaggerated their performance by violating the National Standard for Calculating the Amount of Energy Saved of Enterprises. The paper thus hypothesizes that the National Top-1000 Enterprise Program's alleged achievement of performance 65% higher relative to its amount of energy saved target is likely an overestimation. Although amount of energy saved targets constitute an innovative energy-saving indicator, they do not represent a step forward from conventional volume and intensity targets because of the following four weaknesses: 1) amount of energy saved targets provide limited potential for comparison given the different types of amount of energy saved and the different calculation methods, 2) they generate uncertain environmental outcomes as it is possible to meet a portion of an amount of energy saved target through production volume expansion, 3) they are difficult to enforce due to the complexity of data verification on the part of local government agencies, and 4) they are poorly correlated with the national target for reducing energy intensity. Amount of energy saved targets should therefore be replaced with “double-control” targets that impose both volume and intensity targets on industrial enterprises. [ABSTRACT FROM AUTHOR]

This paper highlights the specificities of the patterns of low carbon energy technological innovations in selected Asian emerging economies. China and the members of ASEAN-4 (Thailand, Malaysia, Indonesia and the Philippines) are included in this analysis for their identical structure of developing economy. We outline a synthetic framework to cluster together the technologies with similar characteristics and analyse the changes of these characteristics over time. This is in order to elucidate the scope of sectoral composition and specialisation of the selected economies, and thereby understand the relative impact of science-based low carbon energy technologies on the niches of technological excellence. The findings show that China was keen to pursue its diversification strategy and develop its capability in low carbon energy technologies since the turn of the millennium. However, China has been gradually losing its momentum in more traditional areas like biomass, hydroelectric power, natural gas and fossil fuels. The ASEAN-4 economies, on the other hand, are showing interest in building a number of niches of technological excellence. This highlights a contrasting relative technological advantage between larger and smaller economies. Our findings also indicate that many of the low carbon technologies in selected economies have yet to attain strong scientific grounding for development. The findings of this paper are expected to provide some insights into low carbon energy technological development of emerging economies, and be useful for other developing economies to establish their strategic moves for energy technology development. [ABSTRACT FROM AUTHOR]

As a good power supplement form of super power and large-scale energy base, distributed energy has the characteristics of less investment and flexible power generation. Facing with the double pressure of the sustainable development of energy use and environmental protection, it has become an efficient solution to meet the demand of load growth, reduce environmental pollution and improve the comprehensive utilization of energy and the reliability of power supply. However, the development of distributed energy starts relatively late in China and confronts many difficulties. So this paper analyzes the present development situation and existing problems of the distributed energy in China. Then it elaborates from the aspects of policies and regulations, technical specifications, price policy and grid-interconnection codes. At last, this paper puts forward relevant policy suggestions of the guarantee mechanism of distributed energy. This paper argues that, with the attention of the development of distributed energy increasing, a series of policies to promote the construction and interconnection of distributed energy will be introduced, and distributed energy will get scaled development in China. [ABSTRACT FROM AUTHOR]

The main goal of this paper is to argue for the necessity and significance of studying the distributional employment impacts of renewable and new energy development (RNE). Based on the comprehensive review of the methodology and conclusions of existing literatures, this paper builds up an extended input–output model to study RNE’s distributional employment impacts on gender and personnel structure. The case study of China׳s power sector in this paper affirmed earlier doubts that RNE development will indeed aggravate the gender inequality problem and add to the level of mismatch between the structure of labor demand and supply, causing structural unemployment problems. The quantitative analysis in this paper outlined here implies that from 2011 to 2020 the development of RNE will bring about 7 million employment gains, but only 81.8% of which can be realized due to the mismatch problem. The study of China may alert other countries to be less-optimistic about RNE’s employment impacts and reaffirm the need to carry out the distributional employment impacts analysis. This paper concludes with policy suggestions such as providing suitable training and equal promotion opportunities for women, offering courses and vocational trainings to RNE-related majors, in order to reduce the structural unemployment problem and further speed up the development of RNE. [ABSTRACT FROM AUTHOR]

Abstract: As a renewable energy source, wind power is playing an increasingly important role in China's electricity supply. Meanwhile, China is also the world's largest market for clean development mechanism (CDM) wind power projects. Based on the data of 27 wind power projects of Inner Mongolia registered with the Executive Board of the United Nations (EB) in 2010, this paper constructs a financial model of net present value (NPV) to analyze the cost price of wind power electricity. A sensitivity analysis is then conducted to examine the impact of different variables with and without certified emission reduction (CER) income brought about by the CDM. It is concluded that the CDM, along with static investment and annual wind electricity production, is one of the most significant factors in promoting the development of wind power in China. Additionally, wind power is envisaged as a practical proposition for competing with thermal power if the appropriate actions identified in the paper are made. [Copyright &y& Elsevier]

Abstract: Research efforts to analyse China's future energy system increased tremendously over the past decade. One prominent research area is China's first binding CO2 emission intensity target per unit of GDP (Gross Domestic Product) and its impact on the country's economy and energy system. This paper compares 18 energy modelling tools from ten Chinese institutions. These models have been described in English language publications between 2005 and 2013, although not all are published in peer-reviewed journals. When comparing the results for three main energy system indicators across models, this paper finds that there are considerable ranges in the reference scenarios: (i) GDP is projected to grow by 630–840% from 2010 to 2050, (ii) energy demand could increase by 200–300% from 2010 to 2050, and (iii) CO2 emissions could rise by 160–250% from 2010 to 2050. Although the access to the modelling tools and the underlying data remains challenging, this study concludes that the Chinese perspective, independently from the modelling approach and institution, suggests a rather gradual and long-term transition towards a low carbon economy in China. Few reference scenarios include an emission peak or stabilisation period before 2040. While policy scenarios frequently suggest efficiency improvements, a short-term and large-scale introduction of non-fossil power technologies is rarely recommended. [Copyright &y& Elsevier]

Abstract: China''s PV industry has developed rapidly in recent years due to the dramatic demand from the world market. In contrast, until 2010 China''s domestic PV market has been very small due to lack of sufficient incentives in the country to promote domestic PV deployment. However, since early 2009 many incentives have been implemented in China. The paper makes an analysis on China''s solar PV incentive policies, particularly the national FIT scheme. Policy recommendations are made with regard to the promotion of the domestic solar PV market, including the construction of an effective national FIT scheme, the imposition of renewable portfolio system as well as the establishment of sound technical and administration standards for the grid-connection of PV systems. The paper contributes to the academic literature over China''s solar PV power policy. [Copyright &y& Elsevier]

Abstract: In March 2011, China’s central government set a new challenging target of reducing its energy intensity by 16% during 2011–2015, after it had achieved a reduction of 19.1% during 2006–2010. And this new target was assigned to provincial authorities in August 2011. However, China’s provincial energy-economic developments are unbalanced and different provinces have different key sectors for energy conservation. Most previous studies focused on provincial energy efficiency at the aggregate level, or the three-industry level (or one-digit level). However, whether for policy decision or academic research, it is necessary to further subdivide the sectors. In this paper, we use three indicators (Gini Coefficient, energy consumption share and energy intensity) to compare provincial energy conservation potentials at the two-digit sector level. To our knowledge, this paper is the first one to identify the keys for energy conversation across the 31 provinces×65 sectors. And the results are shown in visualized maps and matrix tables to help identify the key province×sectors for energy conservation easier. This also helps the central and provincial governments to distinguish key sectors when they monitor the energy conservation progress. [Copyright &y& Elsevier]

Abstract: Recently, energy production in China fell behind energy consumption. This poses important challenges for the rapidly growing Chinese economy. As a consequence, the causal relationship between energy consumption and GDP is an important empirical issue. This paper examines Granger causality between energy consumption and GDP in China using province-level data. The current paper extends the Granger causality analysis employed in previous studies by taking into account panel heterogeneity. Specifically, four different causal relationships are examined: homogeneous non-causality (HNC), homogeneous causality (HC), heterogeneous non-causality (HENC), and heterogeneous causality (HEC). HC and HNC hypotheses are rejected for causality in either direction, from GDP to energy or from energy to GDP, which implies that the panel made up of Chinese provinces is not homogeneous. Then, heterogeneous causality tests (HEC ad HENC) are conducted for each province. For the causality running from GDP to energy, 19 provinces exhibit HEC and 11 provinces exhibit HENC. For the causality running from energy to GDP, 14 provinces exhibit HEC and 16 provinces exhibit HENC. The results suggest that the Chinese government should incorporate a regional perspective while formulating and implementing energy policies. [Copyright &y& Elsevier]

Abstract: Since 2005, there has been dramatic progress in China''s wind power industry. The annual growth rate of newly constructed capacity reached a miracle of 105% and the total installed capacity has increased from 1.27GW in 2005 to 44.73GW in 2010, which has exceeded the target of China''s energy long-term planning for 2020. During the 11th Five-Year-Plan (FYP), the Chinese government has issued a series of polices to promote and regulate the development of wind power industry, which is the underlying force driving its rapid development. This paper is a systematical review on the current status and policies of wind power industry in China. Firstly the current status including achievements and shortcomings is presented, and then the relevant polices and regulations released during the period of 11th FYP are reviewed. Meanwhile, the main approaches of the policies and regulations in promoting the development of wind power industry are discussed and the issues of the current policies are analyzed. Finally, the paper concludes on the perspectives of wind power policies in China. [Copyright &y& Elsevier]

Abstract The Chinese Certified Emission Reduction (CCER) program registers and trades CCER credits compatible with the Clean Development Mechanism (CDM) endorsed by many other countries. This example of an Emissions Trading Scheme (ETS) has become a driving force for the regional expansion of the biogas economy in Hubei, China. Hubei is a notable case that demonstrates how China has begun to decentralize its policy approach to rural green-energy production. Hubei's rural energy agencies have taken a "learning-by-doing" approach to implementing projects under programs including CCER, which have provided both financial and technical support for implementing biogas solutions. This paper illustrates the potential of CDM tools to support the expansion of subnational biogas economies and highlights a pathway for international engagement in local projects that can provide funding, as well as the technological and human resources required for success. Highlights •.• It presents a case study with comprehensive analyses of Hubei's biogas expansion lessons. •.• It describes the significance of both CDM and CCER development in supporting biogas. •.• We address key barriers, including funding and technology risk, to biogas uptake. •.• We suggest that integrating local needs within global ETS initiatives can advance biogas [ABSTRACT FROM AUTHOR]

Abstract This paper examines the relationship between hydroelectricity consumption and economic growth in China, while controlling for fossil fuel consumption, financial development, capital, institutional quality and globalization and its components for the period, 1970–2014. We have employed the Bayer and Hanck, (2013) combined cointegration test to examine the long-run relationships between those variables as well as the autoregressive distributed lag method with structural breaks as a robustness check. The empirical findings demonstrate a long-run relationship between those variables. Hydroelectricity consumption, fossil fuel consumption, capital, financial development and globalization and its components have a positive influence on GDP in China. The findings also provide predominant evidence on the long-run feedback hypothesis between the variables. The findings suggest that policies should be implemented to increase the role hydropower in the energy mix for sustainable economic growth in the country. Highlights • We examine the relationship between hydropower consumption and economic growth in China. • We control for fossil fuel consumption, financial development, capital, institutions and globalization. • We employ the Bayer and Hanck, (2013) cointegration test and ARDL bounds-testing method with structural breaks. • The findings demonstrate a long-run relationship between those variables. • The explanatory and control variables have positive influence on GDP in China. [ABSTRACT FROM AUTHOR]

Abstract Theses on China's low-carbon economy focus on the driving forces of carbon emissions, energy–carbon efficiency, and the carbon–economy nexus. Meanwhile, comprehensive frameworks that assess China's green economy and also analyze its driving forces are lacking. This paper constructs a green productivity index based on the Global Malmquist–Luenberger productivity index to evaluate the development of the low-carbon economy in China. A panel vector auto-regression model is adopted to further analyze the endogenous interactions and dynamic relationships among aspects of the green economy and its influencing factors. Empirical results show that China has seen a balanced development of green economic growth in 2000–2016, achieved in a series of clear stages. To maintain the sustainable growth of the low-carbon economy in the future, China must rely more on technological progress. This research also makes some important discoveries that have not been found in previous studies: the impact of China's industrial structure and energy consumption structure on the green economy are short term, having a duration of impact of approximately four years. Finally, we provide an assessment of provincial green economy development and describe the corresponding policy implications. Graphical abstract Image Highlights • A comprehensive analysis of China's green economy. • A slack-based Global Malmquist–Luenberger index is adopted to calculate the Green Productivity Index in China. • The stage characteristics of green economic development are identified. • A panel vector autoregressive model is used to analyze the interactions among aspects of the environmental economic system. • The findings that the impact duration of energy structure, industry structure, and urbanization on the green economy is about four years. [ABSTRACT FROM AUTHOR]

Highlights • Proposed a novel photovoltaic water pumping system approach for feed, milk production. • Proved the approach with dynamic simulations of water and electricity demand. • The approach yields positive economic improvement, energy and emission reduction. • Scale and production of feeds proportions has significant influence on the results. Abstract As dairy consumption grows, domestic dairy farms face challenges in reducing the cost of feeds and the production of high-quality milk for market demands. This paper aims to introduce and integrate solar energy into the milk production chain to investigate its economic performance. By collecting data on milk production processes from 11 dairy farms in China, we quantified electricity usage and costs of milk production to identify the best and worst cases. Crop yields response to the water demand and the electricity requirements of the dairy farms were considered. The study simulated scenarios of self-sufficiency at 20%, 80%, and 100%, in the identified farms by integrating a photovoltaic water pumping (PVWP) system to provide both power and water for alfalfa and other feeds' irrigation and subsequent milk production. We evaluated annual discounted cost, revenue and net profit under each scenario and case. The results showed that a dairy farm with an integrated PVWP system and self-sufficient feeds would lead to value add-ins, such as electricity saving with solar energy generation, economic cost saving of crops, and CO 2 emission reduction. The analysis on return on investment (ROI) and internal rate of return (IRR) revealed that not all the self-sufficient feeds can bring positive marginal profit. Among the investigated scenarios and cases, the dairy farm marked out by the highest ROI with 3.12 and IRR with 20.4%, was the farm where the integrated PVWP system was used to reach 20% self-sufficiency (self-production of only alfalfa). The other scenarios and cases with higher levels of self-sufficiency showed lower ROIs and IRRs. This indicates that high self-production levels of feeds decrease the total profit due to high investment cost. Sensitivity analyses of crop price and operational cost were conducted for ROI with single and double factor approaches. Scale and production of feeds proportions should be carefully considered in improving the economic performance of dairy milk production. [ABSTRACT FROM AUTHOR]

Abstract: China''s total energy consumption, according to the official data, decreased impressively during 1997–1998 and increased sharply during 2003–2007, which in turn resulted in energy intensity fluctuation. Many literatures explained this “unusual phenomenon” from the perspectives of technical change, economic structure shifting and statistical data quality. They measured aggregate energy in thermal units by using linear summation approaches. In this paper, from the perspectives of heterogeneity and imperfect substitutability among diverse energy types, we further examine China''s aggregate energy consumption by using Divisia (Sato-Vartia) approach. The results show that China''s aggregate energy consumption and intensity fluctuated slightly less than values calculated by using conventional linear approaches, and the “unusual phenomenon” is partly explained. It also implies that China''s energy intensity changes in 2006–2007 are slightly more optimistic than those officially reported, and the official communiqué of provincial energy intensity reduction achievements are partly bias. Some provincial achievement are underestimated or overestimated on some provinces. Our empirical results are also helpful to further research, such as energy–economic modeling, energy price elasticity, and elasticity of substitution among capital–labor–energy–material (KLEM). The difficulties or defects when using Divisia approach are also discussed in this paper. [Copyright &y& Elsevier]

This paper presents a decomposition analysis of energy-related CO2 emission in China for the period 1991–2006 divided into three equal time intervals. The complete decomposition method developed by Sun is used to analyze the nature of the four factors: CO2 intensity, energy intensity, structural changes and economic activity. The results show that economic activity has the largest positive effect in CO2 emission changes in all the major economic sectors and China has achieved a considerable decrease in CO2 emission mainly due to the improved energy intensity. However, the impact of CO2 intensity and structural changes is relatively small. Structural changes only exhibit positive effect to the CO2 mitigation in agricultural sector, and CO2 intensity also contributes to the decrease of CO2 emission in transportation sector. Moreover, a formula about CO2 mitigation is presented in this paper, which shows that China has made a significant contribution to reducing global CO2 emission. [Copyright &y& Elsevier]

Abstract: There are many kinds of methods to estimate the energy requirement or fuel consumption in the optimal design and minimize the life cost of a building. The bin method is one of the most popular ways to estimate the energy performance of a building, which is based on the hourly-based outdoor dry-bulb temperatures of all days in a whole year. There is lack of information about the bin weather data in China. In this paper, the ambient temperature bin data for 26 cities in China are generated. Based on the method used in this paper, the bin data can be calculated with the long-term daily weather record or TMY weather data, the deviation between them is acceptable. The bin data given in this paper may have the positive impact on building energy conservation in China. [Copyright &y& Elsevier]

In the past decades, solar heat for industrial processes (SHIP) have been rapidly developed and applied, and also getting more and more attention all over the world. China is the largest energy consumer with industry accounting for almost 70% of its total energy consumption. Low- and medium-temperature heat takes up 45% of process heat, covering 50–70% of industrial energy consumption, which provides a favorable condition for solar application in industrial processes. China has built developed some demonstration projects to make industrial processes well integrated with solar heating systems. This paper briefly summarizes the status of China's energy consumption, integration of SHIP, as well as available matching solar technologies. Ten typical industrial sectors are selected to specifically describe their potential of SHIP. Moreover, 26 SHIP cases covering the selected 10 sectors are presented by field researches, with capacity of energy saving and emission reduction previously investigated according to their own proportion of SHIP. The potential of SHIP in the 10 sectors are further predicted by optimistically and conservatively making their proportion in SHIP 5.5% and 2% respectively during the period of 2016–2020. The results show that at least 39.40 million tons of coal equivalent and 98.22 million tons of CO 2 emission is expected to be reduced in 2020 in China's all industrial sectors although solar can meet different proportions of heat demand in different industrial sectors. [ABSTRACT FROM AUTHOR]

In assuming its commitments to the reduction of CO 2 emissions, China is contributing great efforts to mitigate CO 2 emissions across its all economic sectors including construction industry. The Chinese construction industry is one of the main contributors to CO 2 emissions in China. This paper presents an empirical study on the CO 2 emissions in the Chinese construction industry across the period of 1995–2011. The input-output analysis method is employed for conducting the study. The data used for analysis are mainly collected from the world input-output database. The analysis results demonstrate that the CO 2 emissions in the Chinese construction industry increased by 388.7% from 1995 to 2011, reached to 3035.9 Mt in 2011. However, the carbon intensity in the construction industry decreased by 46.9% from 1995 to 2011, recorded as 0.00198 Mt/million dollars in 2011. The indirect CO 2 emissions were the majority of the construction CO 2 emissions, accounting for over 95% during 1995–2011. The process-based CO 2 emissions contributed 8.7%–12.6% of the total construction CO 2 emissions during 1995–2011. The electricity, gas and water supply industry, the other non-metallic mineral industry, and the basic metals and fabricated metal industry were the main contributors to the construction CO 2 emissions during 1995–2009. This study presents a comprehensive picture on the CO 2 emissions in the Chinese construction industry, which provides valuable references both to further study and to formulate more effective policies. [ABSTRACT FROM AUTHOR]

At present, the unformed market-oriented pricing mechanism has become a great challenge faced by China's electricity pricing. And the unreasonable electricity pricing caused by cross subsidization has become increasingly serious with the economic development and energy shortage. Tiered electricity price (TEP), which was developed and used since 1970s, was introduced into China as a new electricity pricing method for residential electricity consumption. The TEP can also improve the tariffs, the behaviors and the efficiency of residential electricity consumption. In this study, we use the fundamental theory of the Electricity Economics to analyze the pricing methods and the forms of China's power market with the reform of electric power industry. We also point out the characteristics of residential tiered electricity pricing in China, which is also compared with other countries, such as the United States and Japan. The main factors influencing the residential tiered electricity pricing design are discussed in this paper from the perspectives of users, the electric power enterprise and government regulation. Then we point out the main problems of China's existing tiered electricity pricing, including inadequate level of public awareness and acceptance, unreasonable tiered and electricity price standard, insufficient reflection in regional differences, less combination with other electricity pricing forms, and low-level of smart meter application. [ABSTRACT FROM AUTHOR]

This paper links theoretical perspectives from energy efficiency economics with those observed from corporate environmental strategy to develop a framework for explaining energy efficiency strategies by firms in response to national policies and local regulations in China. The framework is refined through analytic generalization of 20 cases from four industries and four cities in Jiangsu Province, and reveals two strategies: 1) firms with moderate institutional pressure seek incremental competitiveness by adopting energy-saving technologies, which is reinforced by their informational, organizational, and financing capabilities, and facilitated by voluntary policies and industrial competition; 2) firms with survival risk or development constraints under regulation seek a position favored by local governments by replacing old plant and equipment with larger, more efficient ones and contributing to the local community. The Chinese case studies reveal a strong institutional impact on firms' choice of business strategies and particularly the positioning strategy. The identified business strategies shed additional light on the effectiveness and implications of different policy instruments for energy efficiency. [ABSTRACT FROM AUTHOR]

The ecological protection project of substituting small hydropower for fuel (SSHF) in China is to consolidate the achievements of conceding the land to forestry and natural forest protection, solve the problems of the peasants' fuel and rural energy, protect the ecological environment, and promote the comprehensive development of rural economy and society. It is of great importance to the sustainable development of China in the 21st century. This paper provides a survey of substituting small hydropower for fuel in China. Over the last ten years, using small hydropower to replace the rural living fuel in China has resulted in great fruits. By the end of 2013, 252 SSHF projects had been completed in China, and the newly installed capacity of the SSHF power plants had reached 564 MW (MW). The demand of 1.593 million rural residents for living fuel and energy had been met in a long term, 6.29 million ac-res of the forest area had been protected, and the emission of a large amount of pollutants had been decreased. Moreover, many SSHF projects all over the country are still under construction. With regard to the challenges existing in the development course, some suggestions have been proposed. Implementation of the SSHF project will help realize the harmonious coexistence between human beings and the nature in China. [ABSTRACT FROM AUTHOR]

The import risks confronting gas consumers are influenced by, among other factors, geopolitics, transport conditions, and gas prices. Given the increase in China's natural gas imports (NGIs), evaluating the influence of natural gas import risks (NGIRs) on the national economy is necessary. First, China's NGIRs are quantified by considering country, transport and dependence risks. Second, this paper uses a co-integration model to explore the relationship between NGIRs and natural gas import costs (NGICs). Third, an input-output analysis is used to analyse the influence of NGICs on the national economy. The results show that the corresponding impact on gross domestic product (GDP) is 2305.2 million Yuan, assuming a 10% increase in China's NGIRs. The impact of NGIRs differs across domestic sectors; the oil & gas extraction (S3) and gas production and supply (S24) sectors are the most heavily affected. Finally, some suggestions are proposed to improve China's long-term natural gas import security such as improving early warning services for maritime disaster risks. [ABSTRACT FROM AUTHOR]

In recent years, China has started to change its growth strategy to a more sustainable model in response to the limits-to-growth dilemma. Specifically, the national policy advocates to promote the use of green-manufacturing technologies through demonstration projects, and to incentivize Chinese manufacturers to adopt these green-technologies that are also encouraged by local governments. These green technologies can increase the economic gains of manufacturers by reducing costs on energy consumption and shift away from selling low-margin products. However, the local authorities often encounter obstacles when implementing policies for promoting these technologies among manufacturing firms. This paper explores the factors that affect the decision-making of user firms throughout the policy implementation process. Based on the econometric analysis of the survey for China's electric motors upgrading project in Guangdong Province, this study shows that three key factors are helpful in the local government's effort to implement the national project, i.e. manufacturers' awareness, the understanding of the energy-efficiency technology, and the long-term macroeconomic benefits. In addition, encouraging the participation of financial institutions is especially useful for local governments to convince small-and-medium sized firms. These findings are beneficial for local implementation of green-manufacturing technology diffusion policies in China and have worldwide policy implication as well. [ABSTRACT FROM AUTHOR]

This work investigates different scenarios for electric vehicle (EV) deployment in China and explores the implications thereof with regard to energy portfolio, economics and the environment. Specifically, we investigate how to better deliver the value of EVs by improving designs in the power system and charging strategies, given expected developments by 2030 in both the power system and EV penetration levels. The impact of EV charging is quantified by applying an integrated transportation-power system model on a set of scenarios which represent uncertainties in charging strategies. We find that deploying EVs essentially shifts the use of gasoline to coal-fired power generation in China, thus leading to more coal consumption and CO 2 emissions of the power system. Economically, EVs outperform gasoline-powered vehicles in terms of average fueling costs. However, the impact of EVs in terms of CO 2 emissions at the national level largely depends on the charging strategy. Specifically, controlled charging results in more CO 2 emissions associated with EVs than uncontrolled charging, as it tends to feed EVs with electricity produced by cheap yet low-efficiency coal power plants located in regions where coal prices are low. Still, compared with uncontrolled charging, controlled charging shows absolute advantages in: (1) mitigating the peak load arising from EV charging; (2) facilitating RES generation; and (3) reducing generation costs and EV charging costs. Hence, in light of this trade-off of controlled charging with the goals of energy security, economic efficiency and reducing environmental impacts, policy interventions in the Chinese power system should opt for controlled charging strategies in order to best realize the benefits of EVs. Accordingly, this paper proposes that increasing the use of cleaner forms of electricity generation, such as RES power and gas power, and establishing energy efficiency and CO 2 emission regulations in power dispatch are critical for China. Lastly, this work illustrates what the optimized charging profiles from the power system perspective look like for different regions. These results can inform Chinese policy makers in creating a better integration of the transportation and the power system. [ABSTRACT FROM AUTHOR]

Since 2003, Mainland China has been promoting the public–private partnership (PPP) procurement model in the waste-to-energy incineration sector to reduce the waste burying rate and improve environmental quality. Five critical risk factors (CRFs) that affect the construction and operation of waste-to-energy incineration projects have been identified from real-life risk events of 14 PPP waste-to-energy incineration plants through content analysis. These risk factors are insufficient waste supply , disposal of non - licensed waste , environmental risk , payment risk , and lack of supporting infrastructure . A recently completed PPP waste-to-energy incineration plant, the Shanghai Tianma project, was investigated to learn from the effective management of CRFs. First-hand data about the Shanghai Tianma project was collected, with a focus on project negotiation and concession agreement. Lessons learned about risk management were acquired. This paper presents a detailed study of the contractual structure, risk sharing scheme, risk response measures to CRFs, and project transfer of a PPP project. The study results will provide governments with management implications to prepare equitable concession agreements and benefit private investors by effectively mitigating and managing risks in future PPP waste-to-energy incineration projects. [ABSTRACT FROM AUTHOR]

Wind power generation has increased rapidly in China over the last decade. In this paper the authors present an extensive survey on the status and development of wind power generation in China. The wind resource distributions in China are presented and assessed, and the 10 GW-scale wind power generation bases are introduced in details. The domestic research status of main components of WP system is then elaborated, followed by an evaluation of the wind power equipment manufacturers. Finally, the outlook for the development of the wind power utilization in China is presented. [ABSTRACT FROM AUTHOR]

Renewable energy is believed to be the central issue in sustainable development. Literatures on renewables׳ costs are rather sparse, especially on costs of integration and system balancing. The objective of this paper is to fill the research gap by providing an assessment for the cost of China׳s grid-connected renewable energy development and analyze its sharing between different stakeholders. Due to China׳s pricing mechanism of renewable energy and their cost decreasing potential, the pricing model of feed-in tariff and dynamic technological learning processes are employed. In the estimation of purchasing cost, the positive bias is overcome by considering China׳s energy-saving dispatching policy. The results suggest that purchasing cost would be 32.57–40.80 billion Yuan over 2012–2020, and peak in 2017. Grid integration costs which further involve costs of grid infrastructure and system balancing are also investigated. We find that grid infrastructure will cost 27.88 billion Yuan by 2015 and soar to 45.32 billion by 2020, while system balancing will cost 31.49 billion Yuan in 2015 and 63.97 billion Yuan in 2020 among which a substantial part (over 60%) comes from electricity loss in energy transfer. The different parts of these costs are underwritten by disparate participants due to China׳s renewable energy policies and its institutional arrangement. Purchasing cost is shared by power consumers through RES; the cost of grid infrastructure is mainly covered by grid enterprises; and there is no mechanism to specify how to share the cost electricity loss during system balancing which might become a major obstacle for system balancing. [ABSTRACT FROM AUTHOR]

The coordinated actions of the central and the provincial governments are important in improving China's energy efficiency. This paper uses a three-dimensional decomposition model to measure the contribution of each province in improving the country's energy efficiency and a small-sample hybrid model to forecast this contribution. Empirical analysis draws the following conclusions which are useful for the central government to adjust its provincial energy-related policies. (a) There are two important areas for the Chinese government to improve its energy efficiency: adjusting the provincial economic structure and controlling the number of the small-scale private industrial enterprises; (b) Except for a few outliers, the energy efficiency growth rates of the northern provinces are higher than those of the southern provinces; provinces with high growth rates tend to converge geographically; (c) With regard to the energy sustainable development level, Beijing, Tianjin, Jiangxi, and Shaanxi are the best performers and Heilongjiang, Shanxi, Shanghai, and Guizhou are the worst performers; (d) By 2020, China's energy efficiency may reach 24.75 thousand yuan per ton of standard coal; as well as (e) Three development scenarios are designed to forecast China's energy consumption in 2012–2020. [ABSTRACT FROM AUTHOR]

In recent years, Chinese Government paid more attention to the exploitation of offshore wind power, and it became an important trend in the development of wind power industry. However, the development of offshore wind power in China was still in the initial stage. Compared with land-based wind power, the development of off-shore wind power had not only weaknesses and uncertainties, but also strengths and opportunities. In order to research the development of offshore wind power, this paper summarized the aspects on policy, market, technology and development planning of offshore wind power in China, and then adopted SWOT method to analyze the influencing factors, which impact on the development of China's offshore wind power. At last, this article analyzed the internal and external factors that affect the golden period of offshore wind power development, and drew a conclusion that the golden period of offshore wind power in China will come in the future, and most likely around 2020. [ABSTRACT FROM AUTHOR]

Since the establishment of the market economy in 1993, the residential consumption of commodities, including energy, has been highly influenced by prices in China. However, the contribution of the factors related to prices in residential energy consumption is relatively unexplored. This paper extends the KAYA identity with price and expenditure factors and then applies the LMDI method to a decomposition of residential energy consumption in China from 1993 to 2011. Our results show the following: (1) Though the prices of a majority of residential energy sources in China declined, the effect of energy prices restrained residential energy consumption because the expenditure structure changed during the period. (2) During the research period, the urban energy expenditure proportion experienced two progresses of rising and falling, and the rural proportion, which was stable before 2002, sharply increased. (3) The energy consumption intensity effect, which is the negative of the average energy price effect, contributed to most of the decrease in energy consumption, whereas residential income played a key role in the growth of consumption. According to the conclusions, we suggest further marketization and deregulation of energy prices, the promotion of advanced energy types and guidance for better energy consumption patterns. [ABSTRACT FROM AUTHOR]

This paper introduces an improved total-factor ESTR (energy-saving target ratio) index, which combines the sequence technique and the “energy direction” to a DEA (data envelopment analysis) model, in order to measure the possible energy saving potential of a manufacturing sector. Afterward, the energy saving potentials of four different energy carriers, namely coal, gasoline, diesel oil and electricity, for 27 manufacturing sectors during the period of 1998–2011 in China are calculated. The results and its policy implications are as follows: (1) the average ESTRs of coal, gasoline, diesel oil and electricity are 1.714%, 49.939%, 24.465% and 3.487% respectively. Hence, energy saving of manufacturing sectors should put more emphasis on gasoline and diesel oil. (2) The key sectors for gasoline saving is the energy-intensive sectors, while the key sectors for diesel oil saving is the equipment manufacturing sectors. (3) The manufacture of raw chemical materials and chemical products sector not only consumes a large amount of oil, but also has a low efficiency of oil usage. Therefore, it is the key sector for oil saving. (4) Manufacture of tobacco and manufacture of communication equipment, computers and other electronic equipment are the benchmark for the four major energy carriers of energy-saving ratios. [ABSTRACT FROM AUTHOR]

Electric power industry is a typical industry with high energy consumption and high emissions in China. To relieve the increasing environmental pressures and promote the sustainable development of China’s economy and society, it is urgent to take actions to reduce energy consumption and pollution emissions of China’s electric power industry. In this paper, we first present an overview of the development status of China’s electric power industry, including the total power generating capacity and proportions of different power generation methods, the development of renewable energy power generation, as well as the average utilization hours of different power generation equipment. Then, the development of energy conservation and emissions reduction of China’s electric power industry is studied. The indicators of energy conservation include coal consumption for power supply, power consumption rate of power plants and comprehensive line loss rate; while the contents of emissions reduction include desulfurization, emissions control and the comprehensive utilization of solid waste. Finally, suggestions in five aspects to promote energy conservation and emissions reduction of China’s electric power industry are presented. The five suggestions are improving power generation technologies, expanding renewable energy power generation, optimizing power generation process, strengthening monitoring and regulation, and promoting power generation rights and emissions trading. [ABSTRACT FROM AUTHOR]

In order to ease environment pressure and alleviate the scarce problem of energy, Chinese government has begun to exploit and develop shale gas (SG) since 2009. However, the formation of competitive market is bristled with difficulties, due to its infancy, imperfect and lack of standardization. This paper firstly analyzes the status quo of technology, policy, cost, and competition of SG industry in China. Then a system dynamics (SD) model is built to show various trends of Chinese SG industry under different scenarios, which shows that technology, policy and cost all have effects on competitiveness. At last, the simulations reveal that the number of competitors in Chinese SG industry will arrive at its peak from 2019 to 2020. The corresponding recommendations have been presented: Chinese government should pay more attention on the perfection of laws and regulations of SG industry. And competitors should focus on increasing R&D investment. [ABSTRACT FROM AUTHOR]

As wind power resources are abundant, China’s wind power industry has entered a period of rapid growth since 2005, and constantly facing new challenges at the same time. In this paper, the general situation of China’s wind power resource and wind power industry development are introduced. On this basis, future development potential and target of wind power industry are analyzed combining with the recent introduction of the policy and the “Twelfth Five-Year Plan”. The main obstacles prevailing in the development such as grid integration, price mechanism, industry standard system, and supporting policies are discussed. In addition, strategy advice for promoting the further development of China’s wind power is proposed. In general, the development prospect of China’s wind power industry will be even brighter. [ABSTRACT FROM AUTHOR]

Developing biogas capacity is a key pillar in China’s rural sustainable development program. The very dynamic transition of the rural socio-economic platform on which the current biogas development strategy has been based will require significant adjustments in material, technology and supply. The changes of socio-economic status, the problems of resent state and prospects of rural biogas development in China, including fermentation material, fermentation technology, development model and comprehensive utilization of biogas, are discussed in this paper. The results of our analysis indicated the full use of straw as a raw material will be the direction of biogas development in China. Dry methane fermentation will become an important method in the large scale production of biogas from agricultural wastes. The central supply model is the future biogas development model in rural China. It is with broad market and great potential to produce commercial fertilizer from biogas residue. Using biogas to generate electricity has become a new and efficient way to use biogas. [ABSTRACT FROM AUTHOR]

Wind power industry has experienced swift development and gradually moved towards maturity in China. However some hiding issues have appeared and threatened its sustainable development. In this paper, we employ the supply chain framework to present a thorough and comprehensive review on China׳s wind power industry. First we identify key stakeholders along the supply chain and discuss their concerns. Then we summarize the evolution of related policies in both upstream and downstream of the supply chain. The concerns of stakeholders and the existing policies will help understand the progress and challenges of the industry in China. We find that inability of independent technique innovation, unordered and unbalanced pattern of wind farm development, de-motivation of power grid companies, incompatible technical codes of power grid operation, and neglected demand response are among the key issues. Policy recommendations are proposed to address these problems. [ABSTRACT FROM AUTHOR]

The growing conflict between economic growth, energy and environment in China has restrained the country's economic development. In this work we investigated the interaction among the Chinese economy, energy production and consumption and the impacts of concomitant air emissions from 2000 to 2011, using an indicator system based on energy, emergy and money units. The results show that China's rapid economic growth has promoted tremendous expansion in energy production and consumption, which have led to increasing the impact of emissions in this study period. During the time examined, energy production and use efficiencies and the structure of the energy sector improved slightly; the self-sufficiency of energy use fluctuated, as petroleum took on an increasingly strong dependence on imports; fossil energy, mainly coming from coal, still has a majority share in energy production and consumption of the nation; the environmental loading intensity of energy consumption decreased slightly while that of energy production increased; most of the impacts of energy-related emissions are derived from their impact on human health; the impact of emissions from energy production made an increasing contribution to the total impact. Generally speaking, China's economic growth still heavily depends on energy-intensive industries that put great pressure on energy supply and pollution control. Although China has made obvious progress in energy mix optimization to save energy and reduce emissions, the pace of improvement still fell behind that of economic growth. Finally, this paper discussed some related issues and presented corresponding suggestions to further coordinate the relationship between the economy, energy production and consumption and the environment. [ABSTRACT FROM AUTHOR]

How to coordinate the relationships between economy, energy and environment is a complex issue for China. This paper presented an indicator system based on energy, emergy and monetary units to explore the interactions between China׳s economic growth, its energy production and consumption, and the related air emissions during 1995-2011. The results show that (1) China׳s energy utilization efficiency is continuously raised whilst the total production efficiency is just slightly improved; (2) petroleum import has surpassed international warning line (50%) since 2007, and it is further challenging China׳s energy security; (3) basic energy mix is still mainly composed of coal and petroleum; (4) air emissions׳ impact from energy production has climbed rapidly whilst that from energy consumption has declined slowly. Air emissions׳ impact from energy consumption still has main contribution to the total emissions׳ impact whilst that from energy production has an increasing share. Therein, air emissions׳ impact mainly comes from the impact on human health. While air emission intensity from energy consumption decreases obviously, that from energy production generally increases; (5) generally, the relationships between the structures of economy and energy and air emissions have become more coordinated. Compared with structure coordination degree, the improvement of scale harmony degree between the three aspects is much slower due to rebound effect, which will seriously challenge the presented targets in 12th Five-Year-Plan (FYP). Promoting the synergistic effect should become the underlying strategy for future economic sustainable development. [ABSTRACT FROM AUTHOR]

Highlights: [•] This paper presents a comprehensive framework for decomposing changes of energy intensity. [•] The proposed framework combines IDA and PDA. [•] IDA is extended to investigate the mechanism of sectoral energy intensity change. [•] The proposed approach overcomes the limitation of PDA. [ABSTRACT FROM AUTHOR]

Nowadays, renewable energy plays a vital role in the sustainable development of a society. In China, renewable energy power has developed rapidly since the implementation of Renewable Energy Act. Through a series of specific incentive measures, especially subsidy policies, China's renewable energy power has made great achievements both in technology and application. Based on the state-of-the-art of renewable energy power, this paper comprehensively analyzed the costs and benefits of renewable energy power subsidy in China. The analysis results show the cost of renewable energy power subsidy was 0.248 CNY/kWh between 2006 and April 2011, which was distributed among different renewable energy power types (including wind power, biomass power, and solar PV power) or categories (including electricity price, accessing-grid projects, and public independent renewable energy power system). On the other hand, the renewable energy power subsidy also brings benefits to different aspects of the society. Specifically, the environmental benefit amounted to 17.88 billion CNY, and the benefits of guaranteeing energy security, advancing technology innovation and promoting economic development were also noteworthy. [ABSTRACT FROM AUTHOR]

Smart grid is the direction of power system development and it has aroused wide attention. It is also the physical infrastructure to integrate renewable energy into the power system. In China power grid companies are the pioneer in developing smart grids. Propelled by strong demand, China has made encouraging progress in smart grid development, especially in the aspect of ultra-high voltage transmission system. However, in other aspects as distributed generation, microgrid and intelligent demand management etc., the progress is slow and limited. In this paper we analyze the policy, pilot projects, achievements and barriers of developing smart grids in China. We find that lack of a clear national strategy is one main institutional barrier. The current industrial structure of the electric power sector, or the vertical integration of power transmission with distribution and supply, is another institutional barrier. Finally we provide an outlook on smart grid development in China. [ABSTRACT FROM AUTHOR]