Efficiency in the Efficiency in the Energy Industry of Energy Industry of ChinaChina

By Shereen McCurterBy Shereen McCurter

Proposed PositionProposed Position

The position will be argued for the The position will be argued for the coal industry to be decreased in coal industry to be decreased in China, and sources should be China, and sources should be replaced with the most efficient replaced with the most efficient combination of other renewable and combination of other renewable and non-renewable sources of energy. non-renewable sources of energy. The types of energy most efficient for The types of energy most efficient for the Chinese energy industry may not the Chinese energy industry may not be the same for any other country in be the same for any other country in the world. This is all while keeping in the world. This is all while keeping in mind the Chinese governments mind the Chinese governments ultimate goal of being self-sufficient.ultimate goal of being self-sufficient.

The Types of Energy The Types of Energy DiscussedDiscussed

NuclearNuclear Hydroelectric Hydroelectric Solar and PhotovoltaicSolar and Photovoltaic Wind Wind Natural gas Natural gas CoalCoal

BackgroundBackground

Rural vs. Urban Sector in ChinaRural vs. Urban Sector in China Third world country stanceThird world country stance Resources to allocateResources to allocate Energy-intensive productsEnergy-intensive products Going from a strong exporter to a Going from a strong exporter to a

dependent importer.dependent importer.

CoalCoal

76% of China’s energy industry76% of China’s energy industry

22ndnd largest consumer of coal largest consumer of coal behind the U.S.behind the U.S.

“the United States is continually criticized for the fact that its demand for oil accounts for almost one-quarter of world oil consumption, the burning of coal in China by industry, households, and other uses makes up a reported 27 percent of world wide consumption.” (Ebel 2005).

Disadvantages of Coal Disadvantages of Coal

PollutionPollution -16 of the 20 most polluted cities-16 of the 20 most polluted cities

-Unwashed, high-sulfur coal that spews tons -Unwashed, high-sulfur coal that spews tons of sulfur dioxide into the atmosphere.of sulfur dioxide into the atmosphere.

-China is years behind adopting cleaner ways -China is years behind adopting cleaner ways of burning coal that are available. of burning coal that are available.

-Production of greenhouse gases.-Production of greenhouse gases.

-Emissions produce smog and acid rain.-Emissions produce smog and acid rain.

Disadvantages of CoalDisadvantages of Coal

High death rate among miners.High death rate among miners. Low chance of being self-sufficient.Low chance of being self-sufficient. Lack of competitiveness in the Lack of competitiveness in the

market. market. Quantity takes precedence over Quantity takes precedence over

quality.quality. Operators of the coal industry do not Operators of the coal industry do not

bare the full costs of inefficiencies.bare the full costs of inefficiencies.

Advantages of Coal Advantages of Coal

It is inexpensive for China, because they It is inexpensive for China, because they use the lowest quality coal available.use the lowest quality coal available.

There current supply system simply There current supply system simply works for them.works for them.

The cost allows China to continue their The cost allows China to continue their fast paced growth.fast paced growth.

On the contrary they contribute to some On the contrary they contribute to some of the toughest pollution standards.of the toughest pollution standards.

Nuclear PowerNuclear Power

There is an unclear path with There is an unclear path with regards to nuclear power in regards to nuclear power in China. China.

They currently own many They currently own many different types of reactors from different types of reactors from an assortment of countries.an assortment of countries.

Sustainability vs. uncertainty for Sustainability vs. uncertainty for the future.the future.

Disadvantages of Disadvantages of Nuclear PowerNuclear Power

Little chance of being Little chance of being independent.independent.

Nuclear reactors use either Nuclear reactors use either uranium-235 or plutonium-239 as uranium-235 or plutonium-239 as their fuel, both of which must be their fuel, both of which must be mined like many other ores. mined like many other ores.

Plant construction is expensive.Plant construction is expensive. The radioactive waste.The radioactive waste.

Advantages of Nuclear Advantages of Nuclear PowerPower

Once the plant is constructed, the Once the plant is constructed, the electricity generated is inexpensive.electricity generated is inexpensive.

It emits zero greenhouse gasesafter It emits zero greenhouse gasesafter facility is manufactured.facility is manufactured.

Nuclear power generates the most Nuclear power generates the most electricity when considering power electricity when considering power in, power out.in, power out.

Disadvantages of Disadvantages of Natural GasNatural Gas

China is not well endowed with this type of China is not well endowed with this type of fossil fuel. This is a large problem to China, fossil fuel. This is a large problem to China, because this source of energy is the most because this source of energy is the most efficient and cleanest way to provide efficient and cleanest way to provide residential and commercial energy.residential and commercial energy.

Transportation costs are high.Transportation costs are high. The type of natural gas that China is supplied The type of natural gas that China is supplied

with is coal-bed methane and this type of with is coal-bed methane and this type of natural gas is usually more costly and less natural gas is usually more costly and less opportune to recover than the resources in opportune to recover than the resources in hydrocarbon fields. hydrocarbon fields.

Advantages of Natural Advantages of Natural GasGas

Lowest emissions, of all the fossil Lowest emissions, of all the fossil fuels, natural gas is one of the fuels, natural gas is one of the cleanest-burning fuels. cleanest-burning fuels.

High efficiencyHigh efficiency

Low energy-intensive productLow energy-intensive product

Alternative Sources of Alternative Sources of EnergyEnergy

Solar, Wind and HydroelectricSolar, Wind and Hydroelectric China is expected to be one of the China is expected to be one of the

largest consumers of renewable largest consumers of renewable energy in the future.energy in the future.

Low cost to the environment.Low cost to the environment. Low negative externalities Low negative externalities

imposed upon the country.imposed upon the country.

Alternative Sources of Alternative Sources of EnergyEnergy

Omitting half of the fossil fuel Omitting half of the fossil fuel usage and replacing that demand usage and replacing that demand with renewable energy could with renewable energy could continue China’s strong growth.continue China’s strong growth.

The current infrastructure is the The current infrastructure is the problem.problem.

Disadvantages of WindDisadvantages of Wind

Is better to use as a secondary Is better to use as a secondary source of energy.source of energy.

Dependency of the wind as the Dependency of the wind as the output factor.output factor.

Currently the most advanced Currently the most advanced wind power technology can only wind power technology can only store electricity for a maximum of store electricity for a maximum of 108 days on average. 108 days on average.

Advantages of WindAdvantages of Wind

Wind power is one of the most Wind power is one of the most advanced types of renewable advanced types of renewable energy behind hydroelectric. energy behind hydroelectric.

Sustainability, low amount of fuel Sustainability, low amount of fuel required and very low required and very low maintenance.maintenance.

Low environmental impact.Low environmental impact.

Disadvantages of Solar Disadvantages of Solar Power and Power and

Photovoltaic Photovoltaic Expensive, inefficient, fragile.Expensive, inefficient, fragile. High build cost.High build cost. High manufacturing emissions.High manufacturing emissions. Low output, better to use for Low output, better to use for

small tasks.small tasks. Demand is highest when supply is Demand is highest when supply is

lowest.lowest.

Advantages of Solar Advantages of Solar Power and Power and

PhotovoltaicPhotovoltaic Potential to provide global energy Potential to provide global energy

in maybe as little as 10 years.in maybe as little as 10 years.

Complete Self-sufficiency.Complete Self-sufficiency.

Zero operational emissions.Zero operational emissions.

Disadvantages of Disadvantages of Hydroelectric PowerHydroelectric Power

Should be a secondary source of Should be a secondary source of energy.energy.

Must be restricted to areas Must be restricted to areas containing high volumes of water.containing high volumes of water.

Can lead to the depletion of the Can lead to the depletion of the surrounding soil, if too many surrounding soil, if too many dams are put in a small area.dams are put in a small area.

Advantages of Advantages of Hydroelectric PowerHydroelectric Power

Constant generation of energy.Constant generation of energy. Low emissions.Low emissions. Reliable source of energy.Reliable source of energy. Low maintenance.Low maintenance. A dam will provide energy for a A dam will provide energy for a

very large time period.very large time period.

The Perfect Allocation The Perfect Allocation for Chinafor China

Where energy conservation is maximized Where energy conservation is maximized and self-sustainability is achieved. and self-sustainability is achieved.

In the case of comparing the In the case of comparing the environment with a marginal cost-benefit environment with a marginal cost-benefit analysis it must be stated that the costs analysis it must be stated that the costs to the environment are always going to to the environment are always going to outweigh the benefits. Perhaps a more outweigh the benefits. Perhaps a more appropriate demonstration of this type appropriate demonstration of this type would minimize the costs relative to the would minimize the costs relative to the externalities being induced by the energy externalities being induced by the energy industry.industry.

The Perfect Allocation The Perfect Allocation for Chinafor China

The obstacle that China and the The obstacle that China and the world most jump over is that this world most jump over is that this dependence upon renewable dependence upon renewable resources in underdeveloped and resources in underdeveloped and seen as a future plan rather than seen as a future plan rather than a current one. a current one.

The Perfect Allocation The Perfect Allocation for Chinafor China

Coal 10%Coal 10% HydroelectricHydroelectric Solar Solar WindWind Nuclear PowerNuclear Power Natural GasNatural Gas

Why this Allocation of Why this Allocation of Resources would not be Resources would not be

Beneficial to China?Beneficial to China? The transition from fossil fuels to The transition from fossil fuels to

renewable energy is difficult to renewable energy is difficult to achieve given the current achieve given the current infrastructure.infrastructure.

The current energy allocation is The current energy allocation is present, because of the supply present, because of the supply available to China.available to China.

Why this Allocation of Why this Allocation of Resources would not be Resources would not be

Beneficial to China?Beneficial to China? Most Renewable energy is far Most Renewable energy is far

away from being able to provide away from being able to provide energy as a primary source.energy as a primary source.

Renewable energy is a large Renewable energy is a large problem due to storage and problem due to storage and transmission being low.transmission being low.

ConclusionConclusion

Research and development is Research and development is where the money should be spent where the money should be spent in China’s energy industry.in China’s energy industry.

The research done on each source The research done on each source suggests that the strongest types of suggests that the strongest types of energy that China can maintain and energy that China can maintain and improve are hydroelectric, solar, improve are hydroelectric, solar, wind, and nuclear generated power. wind, and nuclear generated power.