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Efficiency in the Energy Industry of China By Shereen McCurter.

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1 Efficiency in the Energy Industry of China By Shereen McCurter

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

3 The Types of Energy Discussed Nuclear Nuclear Hydroelectric Hydroelectric Solar and Photovoltaic Solar and Photovoltaic Wind Wind Natural gas Natural gas Coal Coal

4 Background Rural vs. Urban Sector in China Rural vs. Urban Sector in China Third world country stance Third world country stance Resources to allocate Resources to allocate Energy-intensive products Energy-intensive products Going from a strong exporter to a dependent importer. Going from a strong exporter to a dependent importer.

5 Coal 76% of China’s energy industry 76% of China’s energy industry 2 nd largest consumer of coal behind the U.S. 2 nd largest consumer of coal 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).

6 Disadvantages of Coal Pollution Pollution -16 of the 20 most polluted cities -16 of the 20 most polluted cities -Unwashed, high-sulfur coal that spews tons of sulfur dioxide into the atmosphere. -Unwashed, high-sulfur coal that spews tons of sulfur dioxide into the atmosphere. -China is years behind adopting cleaner ways of burning coal that are available. -China is years behind adopting cleaner ways 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.

7 Disadvantages 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 market. Lack of competitiveness in the market. Quantity takes precedence over quality. Quantity takes precedence over quality. Operators of the coal industry do not bare the full costs of inefficiencies. Operators of the coal industry do not bare the full costs of inefficiencies.

8 Advantages of Coal It is inexpensive for China, because they use the lowest quality coal available. It is inexpensive for China, because they use the lowest quality coal available. There current supply system simply works for them. There current supply system simply works for them. The cost allows China to continue their fast paced growth. The cost allows China to continue their fast paced growth. On the contrary they contribute to some of the toughest pollution standards. On the contrary they contribute to some of the toughest pollution standards.

9 Nuclear Power There is an unclear path with regards to nuclear power in China. There is an unclear path with regards to nuclear power in China. They currently own many different types of reactors from an assortment of countries. They currently own many different types of reactors from an assortment of countries. Sustainability vs. uncertainty for the future. Sustainability vs. uncertainty for the future.

10 Disadvantages of Nuclear Power Little chance of being independent. Little chance of being independent. Nuclear reactors use either uranium- 235 or plutonium-239 as their fuel, both of which must be mined like many other ores. Nuclear reactors use either uranium- 235 or plutonium-239 as their fuel, both of which must be mined like many other ores. Plant construction is expensive. Plant construction is expensive. The radioactive waste. The radioactive waste.

11 Advantages of Nuclear Power Once the plant is constructed, the electricity generated is inexpensive. Once the plant is constructed, the electricity generated is inexpensive. It emits zero greenhouse gasesafter facility is manufactured. It emits zero greenhouse gasesafter facility is manufactured. Nuclear power generates the most electricity when considering power in, power out. Nuclear power generates the most electricity when considering power in, power out.

12 Disadvantages of Natural Gas China is not well endowed with this type of fossil fuel. This is a large problem to China, because this source of energy is the most efficient and cleanest way to provide residential and commercial energy. China is not well endowed with this type of fossil fuel. This is a large problem to China, because this source of energy is the most efficient and cleanest way to provide residential and commercial energy. Transportation costs are high. Transportation costs are high. The type of natural gas that China is supplied with is coal-bed methane and this type of natural gas is usually more costly and less opportune to recover than the resources in hydrocarbon fields. The type of natural gas that China is supplied with is coal-bed methane and this type of natural gas is usually more costly and less opportune to recover than the resources in hydrocarbon fields.

13 Advantages of Natural Gas Lowest emissions, of all the fossil fuels, natural gas is one of the cleanest-burning fuels. Lowest emissions, of all the fossil fuels, natural gas is one of the cleanest-burning fuels. High efficiency High efficiency Low energy-intensive product Low energy-intensive product

14 Alternative Sources of Energy Solar, Wind and Hydroelectric Solar, Wind and Hydroelectric China is expected to be one of the largest consumers of renewable energy in the future. China is expected to be one of the largest consumers of renewable energy in the future. Low cost to the environment. Low cost to the environment. Low negative externalities imposed upon the country. Low negative externalities imposed upon the country.

15 Alternative Sources of Energy Omitting half of the fossil fuel usage and replacing that demand with renewable energy could continue China’s strong growth. Omitting half of the fossil fuel usage and replacing that demand with renewable energy could continue China’s strong growth. The current infrastructure is the problem. The current infrastructure is the problem.

16 Disadvantages of Wind Is better to use as a secondary source of energy. Is better to use as a secondary source of energy. Dependency of the wind as the output factor. Dependency of the wind as the output factor. Currently the most advanced wind power technology can only store electricity for a maximum of 108 days on average. Currently the most advanced wind power technology can only store electricity for a maximum of 108 days on average.

17 Advantages of Wind Wind power is one of the most advanced types of renewable energy behind hydroelectric. Wind power is one of the most advanced types of renewable energy behind hydroelectric. Sustainability, low amount of fuel required and very low maintenance. Sustainability, low amount of fuel required and very low maintenance. Low environmental impact. Low environmental impact.

18 Disadvantages of Solar Power and 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 small tasks. Low output, better to use for small tasks. Demand is highest when supply is lowest. Demand is highest when supply is lowest.

19 Advantages of Solar Power and Photovoltaic Potential to provide global energy in maybe as little as 10 years. Potential to provide global energy in maybe as little as 10 years. Complete Self-sufficiency. Complete Self-sufficiency. Zero operational emissions. Zero operational emissions.

20 Disadvantages of Hydroelectric Power Disadvantages of Hydroelectric Power Should be a secondary source of energy. Should be a secondary source of energy. Must be restricted to areas containing high volumes of water. Must be restricted to areas containing high volumes of water. Can lead to the depletion of the surrounding soil, if too many dams are put in a small area. Can lead to the depletion of the surrounding soil, if too many dams are put in a small area.

21 Advantages of Hydroelectric 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 very large time period. A dam will provide energy for a very large time period.

22 The Perfect Allocation for China Where energy conservation is maximized and self-sustainability is achieved. Where energy conservation is maximized and self-sustainability is achieved. In the case of comparing the environment with a marginal cost-benefit analysis it must be stated that the costs to the environment are always going to outweigh the benefits. Perhaps a more appropriate demonstration of this type would minimize the costs relative to the externalities being induced by the energy industry. In the case of comparing the environment with a marginal cost-benefit analysis it must be stated that the costs to the environment are always going to outweigh the benefits. Perhaps a more appropriate demonstration of this type would minimize the costs relative to the externalities being induced by the energy industry.

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

24 The Perfect Allocation for China Coal 10% Coal 10% Hydroelectric Hydroelectric Solar Solar Wind Wind Nuclear Power Nuclear Power Natural Gas Natural Gas

25 Why this Allocation of Resources would not be Beneficial to China? The transition from fossil fuels to renewable energy is difficult to achieve given the current infrastructure. The transition from fossil fuels to renewable energy is difficult to achieve given the current infrastructure. The current energy allocation is present, because of the supply available to China. The current energy allocation is present, because of the supply available to China.

26 Why this Allocation of Resources would not be Beneficial to China? Most Renewable energy is far away from being able to provide energy as a primary source. Most Renewable energy is far away from being able to provide energy as a primary source. Renewable energy is a large problem due to storage and transmission being low. Renewable energy is a large problem due to storage and transmission being low.

27 Conclusion Research and development is where the money should be spent in China’s energy industry. Research and development is where the money should be spent in China’s energy industry. The research done on each source suggests that the strongest types of energy that China can maintain and improve are hydroelectric, solar, wind, and nuclear generated power. The research done on each source suggests that the strongest types of energy that China can maintain and improve are hydroelectric, solar, wind, and nuclear generated power.


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