Person:

Nielsen, Chris

We estimate the marginal rate of substitution of income for reduction in current annual mortality risk (the “value per statistical life” or VSL) using stated- preference surveys administered to independent samples of the general population of Chengdu China in 2005 and 2016. We evaluate the quality of estimates by the theoretical criteria that WTP for risk reduction should be strictly positive and nearly proportional to the magnitude of the risk reduction (evaluated by comparing answers between respondents) and test the effect of excluding respondents whose answers violate these criteria. For subsamples of respondents that satisfy the criteria, point estimates of the sensitivity of WTP to risk reduction are consistent with theory and yield estimates of VSL that are two to three times larger than estimated using the full samples. Between 2005 and 2016, estimated VSL increased sharply, from about 22,000 USD in 2005 to 550,000 USD in 2016. Income also increased substantially over this period. Attributing the change in VSL solely to the change in income implies an income elasticity of about 2.5. Our results suggest that estimates of VSL from stated-preference studies in which WTP is not close to proportionate to the stated risk reduction may be biased downward by a factor of two or more, and that VSL is likely to grow rapidly in a population with strong economic growth, which implies that environmental-health, safety, and other policies should become increasingly protective.

Policies to control emissions of criteria pollutants in China may have conflicting impacts on public health, soil acidification, and climate. Two scenarios for 2020, a base case without anticipated control measures and a more realistic case including such controls, are evaluated to quantify the effects of the policies on emissions and resulting environmental outcomes. Large benefits to public health can be expected from the controls, attributed mainly to reduced emissions of primary PM and gaseous PM precursors, and thus lower ambient concentrations of PM2.5. Approximately 4% of all-cause mortality in the country can be avoided (95% confidence interval: 1–7%), particularly in eastern and north-central China, regions with large population densities and high levels of PM2.5. Surface ozone levels, however, are estimated to increase in parts of those regions, despite NOX reductions. This implies VOC-limited conditions. Even with significant reduction of SO2 and NOX emissions, the controls will not significantly mitigate risks of soil acidification, judged by the exceedance levels of critical load (CL). This is due to the decrease in primary PM emissions, with the consequent reduction in deposition of alkaline base cations. Compared to 2005, even larger CL exceedances are found for both scenarios in 2020, implying that PM control may negate any recovery from soil acidification due to SO2 reductions. Noting large uncertainties, current polices to control emissions of criteria pollutants in China will not reduce climate warming, since controlling SO2 emissions also reduces reflective secondary aerosols. Black carbon emission is an important source of uncertainty concerning the effects of Chinese control policies on global temperature change. Given these conflicts, greater consideration should be paid to reconciling varied environmental objectives, and emission control strategies should target not only criteria pollutants but also species such as VOCs and CO2.

A series of aggressive measures was launched by the Chinese government to reduce pollutant emissions from Beijing and surrounding areas during the Olympic Games. Observations at Miyun, a rural site 100 km downwind of the Beijing urban center, show significant decreases in concentrations of O3, CO, NOy, and SO2 during August 2008, relative to August 2006–2007. The mean daytime mixing ratio of O3 was lower by about 15 ppbv, reduced to 50 ppbv, in August 2008. The relative reductions in daytime SO2, CO, and NOy were 61%, 25%, and 21%, respectively. Changes in SO2 and in species correlations from 2007 to 2008 indicate that emissions of SO2, CO, and NOx were reduced at least by 60%, 32%, and 36%, respectively, during the Olympics. Analysis of meteorological conditions and interpretation of observations using a chemical transport model suggest that although the day-to-day variability in ozone is driven mostly by meteorology, the reduction in emissions of ozone precursors associated with the Olympic Games had a significant contribution to the observed decrease in O3 during August 2008, accounting for 80% of the O3 reduction for the month as a whole and 45% during the Olympics Period (8–24 August). The model predicts that emission restrictions such as those implemented during the Olympics can affect O3 far beyond the Beijing urban area, resulting in reductions in boundary layer O3 of 2–10 ppbv over a large region of the North China Plain and Northeastern China.

A spatial financial model using wind data derived from assimilated meteorological condition was developed to investigate the profitability and competitiveness of onshore wind power in the contiguous U.S. It considers not only the resulting estimated capacity factors for hypothetical wind farms but also the geographically differentiated costs of local grid connection. The levelized cost of wind-generated electricity for the contiguous U.S. is evaluated assuming subsidy levels from the Production Tax Credit (PTC) varying from 0 to 4 b/kWh under three cost scenarios: a reference case, a high cost case, and a low cost case. The analysis indicates that in the reference scenario, current PTC subsidies of 2.1 b/kWh are at a critical level in determining the competitiveness of wind-generated electricity compared to conventional power generation in local power market. Results from this study suggest that the potential for profitable wind power with the current PTC subsidy amounts to more than seven times existing demand for electricity in the entire U.S. Understanding the challenges involved in scaling up wind energy requires further study of the external costs associated with improvement of the backbone transmission network and integration into the power grid of the variable electricity generated from wind.

Demand for electricity in China is concentrated to a significant extent in its coastal provinces. Opportunities for production of electricity by on-shore wind facilities are greatest however in the north and west of the country. Using high resolution wind data derived from the GEOS-5 assimilation, this study shows that investments in off-shore wind facilities in these spatially separated regions (Bohai-Bay or BHB, Yangtze-River Delta or YRD, Pearl-River Delta or PRD) could make an important contribution to overall regional demand for electricity in coastal China. An optimization analysis indicates that hour-to-hour variability of outputs from a combined system can be minimized by investing 24% of the power capacity in BHB, 30% in YRD and 47% in PRD. The analysis suggests that about 28% of the overall off-shore wind potential could be deployed as base load power replacing coal-fired system with benefits not only in terms of reductions in CO2 emissions but also in terms of improvements in regional air quality. The interconnection of off-shore wind resources contemplated here could be facilitated by China’s 12th-five-year plan to strengthen inter-connections between regional electric-power grids.

In the 21st Conference of the Parties held in Paris in December 2015, China pledged to peak its carbon emissions and increase non-fossil energy to 20% by 2030 or earlier. Expanding renewable capacity, especially wind power, is a central strategy to achieve these climate goals. Despite greater capacity for wind installation in China compared to the US (114.7 vs. 65.9 GW), less wind electricity is generated in China (153.4 vs. 181.8 TWh). Here, we quantify the relative importance of the key factors accounting for the unsatisfactory performance of Chinese wind farms. Different from qualitative studies, we find that the difference in wind resources explains only a small fraction of the current US-China difference in wind power output (-17.9% in 2012); the curtailment of wind power, differences in turbine quality and delayed connection to the grid are identified as the three primary factors (respectively -49.3%, -50.2%, and -50.3% in 2012). Improvements in both technology choices and the policy environment are critical in addressing these challenges.

Wind offers an important alternative to coal as a source of energy for generation of electricity in China with the potential for substantial savings in carbon dioxide emissions. Wind fields derived from assimilated meteorological data are used to assess the potential for wind-generated electricity in China subject to the existing government-approved bidding process for new wind farms. Assuming a guaranteed price of 0.516 RMB (7.6 U.S. cents) per kilowatt-hour for delivery of electricity to the grid over an agreed initial average period of 10 years, it is concluded that wind could accommodate all of the demand for electricity projected for 2030, about twice current consumption. Electricity available at a concession price as low as 0.4 RMB per kilowatt-hour would be sufficient to displace 23% of electricity generated from coal.

A bottom-up methodology and an improved database of emission factors combining the latest domestic field measurements are developed to estimate the emissions of anthropogenic CO from China at national and provincial levels. The CO emission factors for major economic sectors declined to varying degrees from 2005 to 2009, attributed to improved energy efficiency and/or emission control regulations. Total national CO emissions are estimated at 173 Tg for 2005 and have been relatively stable for subsequent years, despite fast growth of energy consumption and industrial production. While industry and transportation sources dominated CO emissions in developed eastern and north-central China, residential combustion played a much greater role in the less developed western provinces. The uncertainties of national Chinese CO emissions are quantified using Monte Carlo simulation at 20% to þ45% (95% confidence interval). Due to poor understanding of emission factors and activity levels for combustion of solid fuels, the largest uncertainties are found for emissions from the residential sector. The trends of bottom-up emissions compare reasonably to satellite observation of CO columns and to ground observations of CO2eCO correlation slopes. The increase in the ratio for emissions of CO2 relative to CO suggests that China has successfully improved combustion efficiencies across its economy in recent years, consistent with national policies to improve energy efficiency and to control criteria air pollutants.

Development of shale gas resources is expected to play an important role in China's projected transition to a low-carbon energy future. The question arises whether the availability of water could limit this development. The paper considers a range of scenarios to define the demand for water needed to accommodate China's projected shale gas production through 2020. Based on data from the gas field at Fuling, the first large-scale shale gas field in China, it is concluded that the water intensity for shale gas development in China (water demand per unit lateral length) is likely to exceed that in the US by about 50%. Fuling field would require a total of 39.9–132.9 Mm3 of water to achieve full development of its shale gas, with well spacing assumed to vary between 300 and 1000 m. To achieve the 2020 production goal set by Sinopec, the key Chinese developer, water consumption is projected to peak at 7.22 Mm3 in 2018. Maximum water consumption would account for 1% and 3%, respectively, of the available water resource and annual water use in the Fuling district. To achieve China's nationwide shale gas production goal set for 2020, water consumption is projected to peak at 15.03 Mm3 in 2019 in a high-use scenario. It is concluded that supplies of water are adequate to meet demand in Fuling and most projected shale plays in China, with the exception of localized regions in the Tarim and Jungger Basins.

China’s emissions of anthropogenic CO2 are estimated using a bottom-up emission inventory framework based on a detailed categorization of economic sectors and provincial economic and energy data. It includes a newly compiled database of CO2 emission factors employing the latest field study results from China. Total annual emissions are estimated to have risen from 7126 to 9370 Mt CO2 from 2005 to 2009. Recent policies to conserve energy and reduce emissions have been effective in limiting CO2 emissions from power and iron & steel plants, but have had little effect on those from cement production. The uncertainties of China’s CO2 emissions are quantified for the first time using Monte-Carlo simulation, producing a 95% confidence interval (CI) of 9% to þ11% for total emissions in 2005. The largest contributors to sector-level emission uncertainty are emission factors for most industrial sources and activity levels for power plants, transportation, and residential & commercial sources. Application of province-level energy consumption and China-specific emission factors in some sectors results in higher annual emission estimates for 2005-2008 as compared with other studies, although most of those are within the 95% CIs of this study