China’s Plans in Reducing Carbon Emissions will not Affect Economic Growth
A new study that is co-written by an MIT professor and scholars at the Institute of Energy, Environment and Economy in Tsinghua University in Beijing is saying that the newly announced plans in capping and trading carbon will reduce carbon dioxide emissions significantly without even moving economic growth at all. This ward of the worry that weaning off coal will lead to an economic slowdown.
Researchers are creating a unique model that will tie together the energy system and its economy that found out that China’s coal use which is a major source of global CO2 emissions will peak around 2020 and the nation’s overall CO2 emissions will also peak at 2030 or sooner. Still the decrease in the carbon fueled economic activity will not keep China from reaching their goal in becoming a well off society by 2050. By using carbon pricing in combination with energy price reforms and renewable energy support, China can reach significant levels of emissions reduction without even undermining economic growth.
Study came after a headline making policy changes that was announced, which includes the toughest regulations on local environment pollution and the creation of markets for CO2 emissions. A suite of measures will lead to an agreement with the US that was unveiled in November 2014, wherein China committed to a goal of creating a non fossil fuel source that will account 20 percent of its energy use by 2030. And the US promised to lower its CO2 emissions by 28 percent by 2025.
According to a bilateral agreement which in turn has been credited with the laying of the foundation for a grander set of global carbon reduction pledges that was inked at the UN Climate Change Conference in Paris. The study will be using the model of China’s economy and energy output named C-GEM that was developed by scholars at the Tsinghua –MIT China Energy and Climate Project. The model laid out two main paths that China energy consumption could take, first the Continued Effort or the business as usual trajectory, the second one after reforms and initiatives is named the Accelerated Effort.
The Continued Effort were China’s carbon emissions will not level off until 2040, that is ten years later than the Accelerated Effort in a level 20 percent higher. The model uses coal, as their primary source of energy will drop significantly from 70 percent in 2010 to 28 percent in 2050. Coal today is used in varying degrees of efficiency across the Chinese energy system, the model shows the fact that you have la lot of low cost opportunities in reducing coal from heavy industry direct use as well as the electric power sector.