Research On The Process And Measurement Of Electric-coal Supply Chain Carbon Emissions

ABSTRACT:At Copenhagen Climate Change Conference in2009, Chinese government promised that China’s energy consumption per unit of GDP would be reduced by40%-45%by2020in relation to2005levels. And this target will be enforced by accountability system. In order to decompose the national binding index into all industry and regions, it is essential to establish carbon emissions measurement method and impact assessment on carbon emissions at enterprise level.In the dissertation, the direct carbon emissions of electric-coal supply chain (ECSC) were systematically studied. A comprehensive literature review was made on the ECSC, including the carbon emissions process, measurement methods, and indicators. The carbon emissions accounting methods of ECSC were reconstructed and a new measurement method for carbon emissions was proposed and its effectiveness was demonstrated. The carbon emissions process simulation model (CEPS) of the ECSC was established, which has solved the operation issue of this method.The main contributions of this paper are as follows:1. The concepts and connotations of the coal supply chain (CSC) and the ECSC were defined.Currently, the definition of CSC refers to the coal enterprises supply chain, the coal industry supply chain, and the coal supply chain. The definition of ECSC refers to the coal-power chain, the coal-power industry chain, and the electric-coal supply chain. Based on the definitions of supply chain by Li&Fung Group and other scholars, the definitions of CSC and ECSC were given, and the connotations (their businesses, research borders, and methods) and the basic structure were analyzed. In addition, this paper specifically pointed out that the ECSC should not include the exploration sectors and its causes.2. The carbon emissions accounting methods of the ECSC were reconstructed.The ECSC includes coal production, transportation, and consumption. There are many carbon emissions accounting methods, so it is necessary to unify the carbon emissions accounting methods.(1)With regard to the accounting of coalbed methane (CBM) release in the production process, if the statistical data of CBM were complete, the sub-source method can be used. Otherwise, the2006IPCC Guidelines for National Greenhouse Gas Inventories (short for2006IPCC Inventories) can be applied to calculate CBM and coal yield simultaneously.(2)Since the electric-coal transportation network has the characteristics of defined clients, defined major nodes, and defined transportation modes, the empirical formula can be used together with statistical analysis and the "2006IPCC Inventories" method. Empirical formula determines the amount of electric-coal transportation volume, statistical analysis determines the proportions of the three types of transportation (railway, road, and waterway), and the "2006IPCC Inventories" determines the carbon emissions factors.(3)In the consumption process, the actual measurement method can be used to estimate the CO2emissions supposed that the emission data of the desulphurization device in the coal-fired power plant is complete. Otherwise, carbon emissions coefficient method would be better in estimation of CO2emissions based on boiler efficiency and carbon emissions factor of electric-coal.3. A carbon emissions measurement method at the industry or enterprise level was proposed, and its effectiveness was demonstrated.(1)In recent years, many studies have given insight into the different carbon emissions reduction targets of central government, local governments, and enterprises based on game theory. The literature review showed that local governments and enterprises have a strong consistency in the interests of carbon emissions reduction, but opposite to the central government. The causes are that the central government focused on the effects of carbon emissions reduction, and enforced carbon emissions reduction policies by many ways, including production suspension, fines, or cutting off water and electricity supply. The local governments gave more concerns to the impact of carbon emissions reduction, including the economic growth of the local government, financial income level, employment rate of the population in the region, and regional stability. Enterprises were more concerned about the impact of carbon emissions reduction on the production, especially the profit levels.(2)The carbon intensity and decoupling method at the industry or enterprise level was proposed based on the input-output theory, decoupling theory, the concept of carbon intensity, as well as related cost-revenue accounting methods. The composition of the costs and revenues of the ECSC enterprises was systematically analyzed, especially these costs of the coal production process (excluding electricity cost), CBM power plant, carbon capture and storage (CCS), and these revenues of CBM power plant and CCS. Moreover, the effectiveness of the method was further verified based on the data of recent years from coal production, transportation, and consumption of enterprises in China. The results showed that:①Carbon intensity is on the rise in electric-coal production, closely related to the amount of CBM release. The cost elasticity showed a strong negative decoupling due to the lack of punishment mechanism, and the CBM release and costs associated mechanisms have not yet been established. Revenue elasticity is expansive negative decoupling, because the profit increase of the coal enterprises is at the cost of CBM release from a carbon emissions perspective.②The horizontal comparison results of carbon intensity in electric-coal transport process showed that carbon intensity of electric-coal rail transport is far less than the road and waterway transportation, and carbon intensity of waterway transport is less than road transport. The pattern of road revenue elasticity is not obvious, whereas waterway revenue elasticity is obviously decoupled. These results showed that the electric-coal transport enterprises by road are dispersed greatly, and deficient in the management of carbon emissions reduction, thus the effect of carbon emissions reduction wasn’t obvious. However, the effect of emissions reduction by water transportation is remarkable, which is in accordance to the current status.③Carbon intensity in electric-coal consumption declines, among which revenue carbon intensity declines faster due to the decline in coal consumption rate (CCR) and the increase in the tariff, and the cost carbon intensity is of a more moderate downward trend, because the increase in electric-coal price is so fast that the reduction advantage of CCR cannot be gained. Cost elasticity is weak negative decoupling, which is not a sustainable state. Therefore, policies should be formulated urgently. Revenue elasticity is in a benign state of strong decoupling.The results of this part have proven the effectiveness and practicality of carbon intensity and decoupling method at the industry or enterprise level.4. The CEPS of the ECSC was established, and an empirical study was carried out.(1)The input-output boundary of the ECSC were defined, and coal sales revenue and transportation revenue were internalized as the revenue of the supply chain. Sufficient assumptions of the CEPS were provided, including the ECSC’s revenue assumptions, cost assumptions, and carbon emissions assumptions. The system dynamics (SD) was used to construct the CEPS of the ECSC, integrating carbon emissions accounting methods, cost-revenue accounting methods, and carbon emissions measurement methods at the industry or enterprise level. This model has solved the operability of carbon emissions measurement method.(2)Taking the ECSC of Sihe Mine in Jincheng Coal Industry Group-Datang Leiyang power plant as an example, a variety of scenarios were simulated to examine the effect of different scenarios on the measurement indicators, and specific recommendations were put forward. The results showed that:①The emissions reduction of the ECSC should give priority to the improvement of CBM utilization rate and reduction of CCR in the power plant. If the CBM utilization rate reached the case level, approximately70%of the emissions reduction potential of the ECSC can be achieved. If the CCR of the ECSC declined0.29g/kwh and0.45g/kwh annually, the target that China’s energy consumption per unit of GDP can be reduced by40%-45%by2020can be achieved.②Currently, it is not suitable to adopt CCS in carbon emissions reduction of ECSC. Without the subsidies from the nation, the cost of CCS will make the cost elasticity and revenue elasticity in a recessive decoupling. The study case can withstand the maximum carbon emissions reduction capacity of550,000tons per year. If the subsidy of￥0.028per kwh can be provided to thermal power enterprises by our country, all the costs associated with CCS can be compensated. In this circumstance, carbon intensity will declines5.03%.③It is suggests that China should establish the punishment mechanisms of CBM release, and improve the supervision mechanisms of CBM subsidy payment. Currently, the penalty cost of CBM release in Shanxi Province is￥1.00per cubic meter, which is too low. The study case indicated that the penalty cost of CBM should not be more than￥6.00per cubic meter. The current amount of subsidy to CBM power plant is enough for power plants of CBM to reach the international average profits. The key issue is to ensure the granting of the subsidy.In conclusion, the carbon emissions process and measurement method of the ECSC were studied deeply, and its effectiveness and feasibility were demonstrated in the dissertation, which has filled the blank of CEPS at the industry or enterprise level in methodology, and illustrated the key targets of carbon emissions reduction, important links, and their important roles at the application level. This study has greatly expanded the research scope of carbon emissions reduction, and made a useful try in subdividing the national emissions reduction targets into industry or enterprise emissions reduction targets.In addition, the simulation results of the CEPS can also provide a reference for the country to formulate development strategies of energy saving and emissions reduction in such fields as coal and electricity.