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Spatial distribution of coal-fired power plants in China

Published online by Cambridge University Press:  25 May 2018

Lunyu Xie ,
Ying Huang  and
Ping Qin
Lunyu Xie
Affiliation:
School of Economics, Renmin University of China, Beijing, China
Ying Huang
Affiliation:
School of Economics, Renmin University of China, Beijing, China
Ping Qin*
Affiliation:
School of Economics, Renmin University of China, Beijing, China
*
*Corresponding author. Email: [email protected]
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Abstract

Coal has fueled China's rapid growth in recent decades, but it also severely pollutes the air and causes many health issues. The magnitude of the health damage caused by air pollution depends on the location of emission sources. In this paper, we look into the spatial distribution of coal-fired power plants, which are the major emission sources in China, and investigate the determining factors behind the distribution. We find that the driving factors are economic development and expansion of electricity grid coverage; the latter factor plays a key role in provinces that are less developed but have abundant coal resources. This suggests a way to reduce health damages caused by air pollution without harming the economy: attracting coal-fired plants to less populated areas by developing trans-province electricity trade and grid coverage.

Keywords

Coal-fired power planteconomic geographyelectricity priceenvironmental regulationfactor endowmentinstalled power capacityutilization hours

JEL classification

R32: Other Spatial Production and Pricing Analysis Q32: Exhaustible Resources and Economic Development Q41: Demand and Supply • Prices
Type
Research Article
Information
Environment and Development Economics , Volume 23 , Issue 4 , August 2018 , pp. 495 - 515
Copyright
Copyright © Cambridge University Press 2018 

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