Thesis (M.Eng.) - Asian Institute of Technology, 1993

A thesis submitted in partial fulfillment of the requirements for the degree of Master of Engineering.

With the rapid growth of the Chinese economy, C02 emissions from fossil fuel burning are expected to rise at a rate of 10%, making China one of the largest emitters of greenhouse gases in the world. A detailed study of emission levels needs to be carried out. This study concentrates on the Northeast region of China. The Energy Flow Optimization Model (EFOM) developed by the European Economic Community has been successfully used in some European countries and also some developing countries of Asia. The same model has been used to study the economic implications of alternative energy policies directed towards controlling carbon emissions for Northeast China. The inputs of the model were obtained from a final energy demand forecast model witch was developed by the Energy Research Institute of The State Planning Commission of China. Energy policy options in this study focused on energy supply sectors. Energy conservation policy is the most effective policy for reducing C02 emission in Northeast China (14% reduction). Substitution of coal to natural gas, oil and nuclear power can reduce emission by 13%. Total energy system cost in the conservation scenario will decrease by 15% and in the substitution scenario, the cost will increase. The best energy strategy to be adopted is the energy conservation strategy with limited coal substitution.