CGE and SDB: case of China

ERI AIM Project teamPrepared for 10th AIM Workshop
March 10th to 11th, 2005, NIES, Tsukuba

CGE model application
Environmental and economic impact of SO2 policies:
application of AIM/CGE for China caseBy
Zhu Songli

Scenarios••••

Reference scenario (RS)Scenario 2 – investment + sulfur tax scenario (INV)
Scenario 3 – Investment and emission cap scenario(INV+CAP)
Scenario 4 - enhanced investment and emission cap scenario(EINV+CAP)

Environmental options in transportation sector
Technology options in transportation sector
Natural gas vehicles (NGVs)
Liquefied petrol gas vehicles
Methanol-powered vehicles (M85)
Ethanol-powered vehicles (E10)Electric HybridElectric vehicles
Direct-injection diesel vehicles
Bio-diesel vehicles
Fuel cell vehicles
Solar vehicle
Miniaturization of vehicle (weight reduction, “ultra lightweight steel”)
Vehicles with variable valve control(Existing gasoline vehicle)(Existing diesel vehicle)

Environmental options in transportation sector
Institution, management and planning options
Compact city and smart growth
Regional system of cities
Information technology based communication (toreduce travel demand)
Promotion of mass rapid transit (MRT)
Promotion of non-motorized transport (NMT)
Promotion of community vehicle
Car free zones
Number plate bidding system
Car sharing

Environmental options in transportation sector
Institution, management and planning options
Road pricing
Travel awareness initiatives for wise use of automobiles(to reduce car ownership)
Vehicle emission standard
Inspection/maintenance
Vehicle fuel standard
Green fuel tax
Intelligent travel system (ITS)
Public awareness rising on environmentally friendly
driving (engine off, etc.).
Fuel economy standard

Strategic Policy Options for Renewable Energy Sector
Technology options in renewable energy sector
Wind power
Small Hydro Power
Micro-hydro power
Household methane technology
Birdhouse and barn methane(Mid and large scale methanetechnology)
Straw burning electricity generation technology
Biomass gasification cycling electricity generation technology
Centralized gas supply through biomass gasification
Biomass producing liquid biofuels technology
Biomass molding carbonization technology
Directly using of geothermal and geothermal power generation
Tidal power generation
Solar Water Heater
Solar house and greenhouse
Solar drying
Solar cooking rangeStrategic Policy Options for Renewable Energy Sector
Technology options in renewable energy sector
Solar heating power generation
Solar photovoltaics (PV) power generation
Integration of solar energy in architecture
Highzones technology
Biomass IGCC technology
Biomass liquefaction to make liquid fuels
Clean and low-cost production of fuel ethanol through cellulose
zymolysis
Large off-shore wind farm based on MW level wind turbine
Integration of large-scale wind farm with energy storage device
Separated ocean power generation and freshwater production
systemMembrane solar cell
Low- and medium-temperature geothermal energy usage technology
High-efficiency ground source heat pump
Making hydrogen from biomass

Strategic Policy Options for Renewable Energy Sector

Institution, management and planning
Legislation (the Law on Renewable Sources)
Make the goal of the development of renewable resources
Establish harmonious management mechanism
Mandatory Market Share (MMS)
Trade of Renewable Energy Certificate
Competitive biding for minimum subsidy
Combining subsidy with loan ownership model
Renewable energy promotion fundMarket-based institutional finance
Renewable energy feed-in-tariff

Strategic Policy Options for Renewable Energy Sector

Institution, management and planning
RESCO approach to financing
Seed finance for energy enterprise development
Renewable Portfolio Standards
CDM and other clean climate initiatives
Micro-credit and self-help group financeCommunity-based green power purchasing
Subsidy policy:
Taxation policy
Pricing policy
Voluntary Policy
International mechanism

MRT

Train

Ship

CarBus

MRT

Train

Ship

Air ()High Eff.)

Air (Low Eff.)

Ship (High eff.)

Ship (Low Eff.)

Train (High Eff.)

Train (electricity)

Train (diesel)

MetroLRTBRTFuel cell bus

Natural gas bus

Hybrid bus

Existing oil bus

TDI diesel car

Fuel cell car

NG carLPG carHybrid car

Existing oil car

ELEOil
H2Gas

MRTBus

Air
Car

JJ
J
E
S
E
Q
R
VehiclePassenger
Transportation

U RO

M
NT

Passenger
Transportation

Passenger
Transportation

Vehicle