Fossil fuels still dominate China’s energy supply. This chapter will explain why the shift away from fossil fuels is proving difficult. Key factors include the continued preference for maximising the degree of self-reliance in energy supply, the nature of economic incentives and the interests of different actors. The focus is on the growing efficiency of coal-fired power generation and on the steady rise of gas production and consumption, as the management of these two industries will play a key role in the reduction of air pollution and greenhouse gas emissions. Improvements in these fields have been driven mainly by administrative policy instruments backed by funding, but this approach tends to be less effective when enforcement is insufficiently rigorous or the incentives are weak.
KeywordsCoal Gas Thermal power Shale gas Coalbed methane Carbon capture
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