Investigators
Michael M. May (Principal Investigator) - Stanford University
Chi Zhang
Thomas C. Heller (Principal Investigator) - Stanford University

The program explores the applicability of international policy instruments, such as the Clean Development Mechanism (CDM) sanctioned at Kyoto in 1997, to decisions regarding and prospects for energy sector modernization in provinces of China. Much the least cost way to reduce greenhouse gases (GHG) emissions is to take advantage of low cost opportunities for reductions wherever they arise in the world. Nevertheless, there is much uncertainty as to whether the CDM is the most practical and reliable way to ensure GHG reductions in developing countries. Defining and agreeing on the future projects eligible for subsidies poses fundamental problems. In addition, the subsidies that may be expected under the CDM may not be large enough to change the composition of energy infrastructure in the most important developing nations like China or India. Because of the importance of regional decision-making and regional differences in China, the thrust of this research is to assess the economic and institutional factors affecting energy sector decisions at the provincial levels and below.

Several regional case studies are planned. The first stage study has concentrated on Guangdong province. Collaborating with a provincial energy research center, the research team have taken field trips, held a series workshops and produced several detailed reports on Guangdong's electricity industry. A second case study of a quite different province is being scheduled. Started in the Fall of 1998, the project is expected to last for two to three years.

Contact
Chi Zhang

Funding provided by
• Bechtel Initiative on Global Growth and Change
• EPRI