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Climate change adaptation mechanisms and strategies of coal-fired power plants

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Abstract

Coal-fired power plants (CPPs) are important participants in the field of climate change. Many CPPs rely on large amounts of water, which makes them vulnerable to climate change. Through the theoretical modeling and case study, the paper investigated the climate change adaptation strategies of CPPs from both short-run and long-run perspectives. In the short-run, the role of increasing cooling water intake to adapt to the adverse climate conditions is limited by local water supply capacity, environmental regulations, and existing technology. In the long-run, the CPP operator’s adaptation retrofitting decisions are affected by multiple factors including the expected impacts of climate change, remaining lifespan, initial retrofit cost, and interest rate. But climate change information may not make difference to CPP operators’ adaptation decisions in some circumstances. No matter adaptation retrofit can bring “additional benefits,” the government’s incentive policies can induce the CPP operator to invest in adaptation retrofit no later than when the impacts of climate change appear. The incentive policies’ ability to promote adaptation strategies to break through the profit threshold is the key to achieve the government’s expected adaptation strategies.

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Data availability

The datasets generated during and/or analyzed during the current study are available from the corresponding author on reasonable request.

Notes

  1. Although there may be no obvious boundary between short-run and long-run, in this study, we assume that the short-run is less than 1 year and the long-run is more than 1 year.

  2. Some regions constraint the amount of heat discharged into the natural river. Here, we abstract from environmental regulations because (1) the information to incorporate this limitation into empirical applications is lacking and (2) the temperature limitation on the cooling water serves a very similar purpose.

  3. The efficiency loss is not taken into consideration here, that is, \(\delta =0\), and then \(\eta ={\eta }_{D}\) according to Eq. (2)

  4. The state that all combinations of water inflow, coal intake, and temperature increase for which the firm produces at full capacity (see the supplementary Appendix B for details).

  5. See the supplementary Appendix C for details.

  6. In order to facilitate modeling and avoid the computational complexity caused by symbol abuse, the retrofit is assumed that it can reduce water consumption to zero, which can be realized by a dry-cooling system. Additionally, if it is not assumed to be zero, it can be replaced by introducing a gap in modeling, so this assumption does not affect the model results.

  7. http://zxjc.sthj.tj.gov.cn:8888/PollutionMonitor-tj/publishEnterpriseInfo.do?ID=247112131328684

  8. Please note that the production of CPP is also affected by summer extremes conditions. Since that information is hard to access, Fig. 4 only represents a partial picture of the climate change effects. Additionally, it is assumed that the surface water temperature is the same as the air temperature.

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Correspondence to Yufang Peng.

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Wei, P., Peng, Y. & Chen, W. Climate change adaptation mechanisms and strategies of coal-fired power plants. Mitig Adapt Strateg Glob Change 27, 55 (2022). https://doi.org/10.1007/s11027-022-10031-8

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