Electricity portfolio innovation for energy security: the case of carbon constrained China

China’s energy sector is under pressure to achieve secure and affordable supply and a clear decarbonisation path. We examine the longitudinal trajectory of the Chinese electricity supply security and model the near future supply security based on the 12th 5 year plan. Our deterministic approach combines Shannon-Wiener, Herfindahl-Hirschman and electricity import dependence indices for supply security appraisal. We find that electricity portfolio innovation allows China to provide secure energy supply despite increasing import dependence. It is argued that long-term aggressive deployment of renewable energy will unblock China’s coal-biased technological lock-in and increase supply security in all fronts. However, reduced supply diversity in China during the 1990s will not recover until after 2020s due to the long-term coal lock-in that can threaten to hold China’s back from realising its full potential

Agri-food transitions and the “green public sphere” in China

Studies of China’s agri-food transitions have so far largely overlooked the role of the public in policymaking and practice. We argue that a deeper understanding of public perceptions of – and engagement with – agricultural innovation, is required to better understanding the dynamic responses that exist to the multiple complex and intersecting challenges facing China’s food and agriculture system. In order to demonstrate the kinds of additional evidence that might contribute to an enhanced understanding of the role of the public sphere in China’s agri-food transitions, we present findings from an exploratory project drawing on qualitative field research. Focussing in particular on public perceptions of genetically-modified crops, we suggest a number of preliminary insights that confirm, challenge or supplement earlier findings. We use this study, in the particular socio-political context of China, to shed light on the complex role of public perceptions (elsewhere in the transitions literature referred to as ‘market/ user preferences’ or ‘culture’) in agri-food transitions. This raises important questions for the governance of Chinese agri-food transitions and how future research might better inform its response to a changing public sphere

The verticality of policy mixes for sustainability transitions: A case study of solar water heating in China

Climate change and sustainable development are the defining challenges of the modern era. The field of sustainability transitions seeks systematic solutions for fundamental transformations of socio-technical systems towards sustainability, and exploring the role of policy mixes has been a central research agenda within the field. In the extant literature, there exists a lack of both conceptual and empirical research on the vertical dimension of policy mixes for sustainability transitions. This study provides a multilevel and evolutionary interpretation of the vertical interactions of policy mixes in the process of industrial path development towards sustainability transitions. An exemplary case of solar water heating (SWH) technology in Shandong Province in China is presented, capturing both the bottom-up and top-down processes of interactions. On the one hand, urban-level policy initiatives can inform higher-level policymaking; on the other hand, national-level priorities can greatly configure policy strategies for lower-level governments. Moreover, as the industry matures, the interactions of multilevel policy mixes evolve from simpler, unidirectional patterns to more complex, bidirectional ones through a vertical policy-learning feedback mechanism. This study generates two important policy implications that extend beyond the Chinese context: first, dynamic vertical interactions between multilevel governments indicate the need to develop more nuanced perspectives on the design of policy mixes; second, policy makers need to hold a more dynamic view of policy mixes by recognizing their temporal and coevolutionary nature through the policy learning process

How Far Can Renminbi Internationalization Go?

Since the formal launch of the renminbi trade settlement scheme in 2009, renminbi internationalization has made impressive inroads. The progress in renminbi trade settlement is especially impressive. However, Hong Kong, China's offshore renminbi deposits failed to make significant progress as expected. The question of how far renminbi internationalization can go has become a common concern in the international financial community. This paper argues that while a contributing factor is the sheer size of the People's Republic of China's (PRC) trade and the convenience of using the renminbi for transaction settlements, exchange rate arbitrage and interest rate arbitrage matter also. Profits from arbitrages are the major driving forces of, but do not constitute a sustainable basis for, internationalization. A fundamental constraint for renminbi internationalization is the PRC's capital controls. Before fully opening up its capital account and making the renminbi freely convertible, however, the PRC needs first to put its own house in order. Macroeconomic stability has to be achieved; the high ratio of financial leverage should be reduced; a rational and flexible interest rate structure must be created; and risk management capacity across industries should be established. Most importantly, the PRC must make the renminbi exchange rate flexible to reflect demand for and supply of foreign exchange in the market. The renminbi can and will become a major international currency eventually, but the road to internationalization is bound to be long and bumpy