Conclusions and Implications

Abstract

A methodological framework called Negotiation-coordination in Energy Environment Planning (NEEP) is systematically developed. The framework has been applied to the power systems of China to analyze two negotiation processes. Negotiation topics include power investments, power generation, electricity tariffs, and CO₂ emission mitigations and trading. Several conclusions and implications of the research are briefly summarized in this chapter. First, China’s reform from centralized planning mode to market economy oriented mode is a great success. Decentralization from socialism to socialism with Chinese characteristics in China’s reform is the key of the success. Integrative negotiations rather than government mandatory measures avoided major economic and social shocks that often lead to wastes of natural resources in a large scale and/or high inflations. China’s decentralized economic development system and investment mode has attracted a tremendous amount of capital from direct foreign investments, domestic companies, and their workers that have greatly contributed to China’s superior economic performance. Second, in energy-environment planning and policy research, many energy specialists now focus on the combination of macroeconomic model, energy demand model, energy supply model, and environment impact evaluation model, and so on. However, very few researchers have actually worked on the coordination process itself, taking into consideration of different actors on a quantitative basis within an energy system. This research fills the gap and to propose a methodological framework and some quantitative solutions to this problem. Third, this research indicates that China’s economic reform will continue over the next decades at least three areas: banking system, the oil and gas sector, and carbon trading. The methodological framework and negotiation simulations developed in this research will benefit the Chinese in these three areas.