**Meet the editors**

Dr. Soner Gokten is an assistant professor at the Department of Management, Faculty of Economics and Administrative Sciences, Başkent University, Ankara, Turkey. He obtained his BSc degree in Business Administration from the Faculty of Economics and Administrative Sciences, Başkent University, Ankara, Turkey, and his MBA degree in Finance and PhD degree in Accounting and Finance

from the Graduate School of Social Sciences, Gazi University, Ankara, Turkey. He has published several articles, books, book chapters, and conference proceedings. He is serving as a referee to national and international journals. He has investment advisory, project finance, and corporate valuation experiences in several national and international projects.

Dr. Guray Kucukkocaoglu is a professor and the chairman of the Department of Management, Faculty of Economics and Administrative Sciences at the Başkent University, Ankara, Turkey. He is a part-time instructor at the Turkish Military Academy, Defence Sciences Institute, and Ankara Yıldırım Beyazıt University. He obtained his BSc degree in Business Administration and MBA degree

in Finance from the Harmon College of Business and Professional Studies, University of Central Missouri, USA, and his PhD degree from the Faculty of Political Sciences, Ankara University, Ankara, Turkey. He has published several books and is serving as a referee to national and international journals. He has investment advisory, project finance, and corporate valuation experiences in several national and international projects.

Contents

**Preface VII**

**Section 1 Policies and Strategies 1**

**(1800–2015) 23** Norbert Edomah

Li-Min Cheng

Wuri

**Section 2 Technologies and Industries 83**

Chapter 5 **Clean Energy Management 85**

**Effectiveness in China 3** Ying Li and Ke Chen

Chapter 3 **Towards a Sustainable Energy Future for Sub-Saharan Africa 47** Shadreck Mubiana Situmbeko

Chapter 4 **Electric Vehicle Promotion Policy in Taiwan 69**

Ali Samadiafshar and Atiyye Ghorbani

**System in Tropical System 99**

Chapter 6 **Renewable Energy of Biogas Through Integrated Organic Cycle**

Ambar Pertiwiningrum, Cahyono Agus DK and Margaretha Arnita

Chapter 1 **A Review of Air Pollution Control Policy Development and**

Chapter 2 **Historical Drivers of Energy Infrastructure Change in Nigeria**

## Contents

**Preface XI**



Preface

Sustainable development is the kind of development that meets the needs of the present without compromising the ability of future generations to meet their own needs—Brundtland Report (1987) We are more aware of the need to achieve sustainable development than ever before. It is fair to say that two of the most important factors affecting sustainability are the ways of both producing and using energy. In this sense, this book provides a forum to articulate and discuss energy man‐ agement issues in the frame of achieving sustainable development. And undoubtedly, we are also

This volume contains 6 chapters and is organized into two sections: "Policies and Strategies," and

The first section "Policies and Strategies" includes four chapters. In the first chapter, Ying Li and Ke Chen review the development of air pollution control policies in China nearly 70 years of his‐ tory and discuss some political and institutional factors that have resulted in the ineffectiveness of policy implementation. They examine the pollution charge system, a key policy measure used in air pollution regulation between the 1980s and 2000s, and highlight some major changes in con‐ trol policies since 2000. They also present a comparison of pollution control policies between Chi‐ na and the United States. In Chapter 2, Norbert Edomah presents the key historical drivers of energy infrastructure change in Nigeria by discussing the roles of politics, technologies, resour‐ ces, and geographies on how energy system must also change. Shadreck Mubiana Situmbeko summarizes the energy problems in sub-Saharan Africa and discusses the future of that region in Chapter 3. The last chapter in this section by Li-Min Cheng analyzes the promotion methods in the electric vehicle industry in Taiwan and suggests that nations should actively and effectively develop an electric vehicle industry to reduce carbon dioxide emissions and energy consumption. The second section "Technologies and Industries" includes two chapters. In Chapter 5, Ali Sama‐ diafshar and Atiyye Ghorbani discuss dedicated technological solutions to the growing global needs for sustainable development in the frame of clean energy management. The last chapter by Ambar Pertiwiningrum, Cahyono Agus, and Margaretha Arnita Wuri discusses the biogas purifi‐

cation and reveals the advantages of using adsorption technology in the purification.

We would like to express our sincere gratitude to all the authors for their high-quality contribu‐ tions. The successful completion of this book has been the result of the cooperation of many peo‐ ple. In the end, we would like to thank Mr. Julian Virag, Publishing Process Manager, for his support during the publishing process as well as Ms. Ana Pantar, Commissioning Editor, for in‐

**Assistant Professor Soner Gokten and Professor Guray Kucukkocaoglu**

Department of Management

Başkent University, Turkey

Faculty of Economics and Administrative Sciences

deeply concerned about these issues in the recent times.

"Technologies and Industries."

viting us to be the editors of this book.

## Preface

Sustainable development is the kind of development that meets the needs of the present without compromising the ability of future generations to meet their own needs—Brundtland Report (1987)

We are more aware of the need to achieve sustainable development than ever before. It is fair to say that two of the most important factors affecting sustainability are the ways of both producing and using energy. In this sense, this book provides a forum to articulate and discuss energy man‐ agement issues in the frame of achieving sustainable development. And undoubtedly, we are also deeply concerned about these issues in the recent times.

This volume contains 6 chapters and is organized into two sections: "Policies and Strategies," and "Technologies and Industries."

The first section "Policies and Strategies" includes four chapters. In the first chapter, Ying Li and Ke Chen review the development of air pollution control policies in China nearly 70 years of his‐ tory and discuss some political and institutional factors that have resulted in the ineffectiveness of policy implementation. They examine the pollution charge system, a key policy measure used in air pollution regulation between the 1980s and 2000s, and highlight some major changes in con‐ trol policies since 2000. They also present a comparison of pollution control policies between Chi‐ na and the United States. In Chapter 2, Norbert Edomah presents the key historical drivers of energy infrastructure change in Nigeria by discussing the roles of politics, technologies, resour‐ ces, and geographies on how energy system must also change. Shadreck Mubiana Situmbeko summarizes the energy problems in sub-Saharan Africa and discusses the future of that region in Chapter 3. The last chapter in this section by Li-Min Cheng analyzes the promotion methods in the electric vehicle industry in Taiwan and suggests that nations should actively and effectively develop an electric vehicle industry to reduce carbon dioxide emissions and energy consumption.

The second section "Technologies and Industries" includes two chapters. In Chapter 5, Ali Sama‐ diafshar and Atiyye Ghorbani discuss dedicated technological solutions to the growing global needs for sustainable development in the frame of clean energy management. The last chapter by Ambar Pertiwiningrum, Cahyono Agus, and Margaretha Arnita Wuri discusses the biogas purifi‐ cation and reveals the advantages of using adsorption technology in the purification.

We would like to express our sincere gratitude to all the authors for their high-quality contribu‐ tions. The successful completion of this book has been the result of the cooperation of many peo‐ ple. In the end, we would like to thank Mr. Julian Virag, Publishing Process Manager, for his support during the publishing process as well as Ms. Ana Pantar, Commissioning Editor, for in‐ viting us to be the editors of this book.

> **Assistant Professor Soner Gokten and Professor Guray Kucukkocaoglu** Department of Management Faculty of Economics and Administrative Sciences Başkent University, Turkey

**Section 1**

**Policies and Strategies**

## **Policies and Strategies**

**Chapter 1**

**Provisional chapter**

**A Review of Air Pollution Control Policy Development**

**A Review of Air Pollution Control Policy Development** 

Upon economic booming and rapid urbanization, China has been suffering from severe air pollution problem. While the Chinese government strives to reduce emissions through numerous laws, standards and policy measures, rapid economic and social changes challenge policy design and implementation. Over time, control policies have been largely ineffective and air quality in the majority of the nation has not been significantly improved and even worsened in many urban areas. This chapter reviews the development of the air pollution control policies in China's nearly 70 years' history and discusses some political and institutional factors that have resulted in the ineffectiveness of policy implementation. We examined the pollution charge system, a key policy measure used in air pollution regulation between 1980s and 2000s, and highlighted some major changes in control policies since 2000s. A comparison of pollution control policies between China and the United States is also presented. The purpose of this chapter is to inform decision makers, particularly in the developing world, with some insights of improving policy designs and environmental governance in the control of air pollution.

> © 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution,

© 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,

distribution, and reproduction in any medium, provided the original work is properly cited.

in 2010, with more than 80% people

and reproduction in any medium, provided the original work is properly cited.

Upon economic booming and rapid urbanization, China has been suffering from severe air pollution problem. A recent study based on satellite observations reported China as one of the regions with the highest long-term concentrations of fine particulate matter (PM2.5, particulates with an aerodynamic diameter of less than or equal to 2.5 μm) [1]. The population-

DOI: 10.5772/intechopen.74928

**and Effectiveness in China**

**and Effectiveness in China**

http://dx.doi.org/10.5772/intechopen.74928

Additional information is available at the end of the chapter

Additional information is available at the end of the chapter

**Keywords:** air pollution, control policy, effectiveness, China

weighted average PM2.5 concentration reached 59 μg/m<sup>3</sup>

Ying Li and Ke Chen

Ying Li and Ke Chen

**Abstract**

**1. Introduction**

#### **A Review of Air Pollution Control Policy Development and Effectiveness in China A Review of Air Pollution Control Policy Development and Effectiveness in China**

DOI: 10.5772/intechopen.74928

Ying Li and Ke Chen Ying Li and Ke Chen

Additional information is available at the end of the chapter Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.74928

#### **Abstract**

Upon economic booming and rapid urbanization, China has been suffering from severe air pollution problem. While the Chinese government strives to reduce emissions through numerous laws, standards and policy measures, rapid economic and social changes challenge policy design and implementation. Over time, control policies have been largely ineffective and air quality in the majority of the nation has not been significantly improved and even worsened in many urban areas. This chapter reviews the development of the air pollution control policies in China's nearly 70 years' history and discusses some political and institutional factors that have resulted in the ineffectiveness of policy implementation. We examined the pollution charge system, a key policy measure used in air pollution regulation between 1980s and 2000s, and highlighted some major changes in control policies since 2000s. A comparison of pollution control policies between China and the United States is also presented. The purpose of this chapter is to inform decision makers, particularly in the developing world, with some insights of improving policy designs and environmental governance in the control of air pollution.

**Keywords:** air pollution, control policy, effectiveness, China

#### **1. Introduction**

Upon economic booming and rapid urbanization, China has been suffering from severe air pollution problem. A recent study based on satellite observations reported China as one of the regions with the highest long-term concentrations of fine particulate matter (PM2.5, particulates with an aerodynamic diameter of less than or equal to 2.5 μm) [1]. The populationweighted average PM2.5 concentration reached 59 μg/m<sup>3</sup> in 2010, with more than 80% people

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

living in areas where air quality did not meet China's annual average PM2.5 standard of 35 μg/m<sup>3</sup> [2].1 Air pollution has caused serious public health and environmental damages in China, resulting in enormous economic loss. For instance, a recent evaluation estimated that the health-related economic loss in China's 74 cities caused by PM10 and sulfur dioxide (SO2 ) ranged from 1.63 and 2.32% of the GDP [3].

China's lack of pollution control, both ideologically and practically, both by governmental actions and by general public demand, was because of several reasons: first, during that period China placed the policy priority exclusively on economic development, particularly the development of heavy industries, so as to fulfill rapid industrialization in this country; second, China's political isolation from the western world made this nation slow in understanding and participating in the world's increasing concerns about pollution in 1960s, which was even aggravated by the anti-intellectual ferment of the Cultural Revolution from 1966 through 1976 [5]; third, because of the poor income levels and living conditions in general, Chinese people were the most concerned with basic life demands such as food and clothes, and therefore little heed had been taken of environmental issues. However, the development of heavy industries in this period and the ubiquitous use of "dirt" technologies as well as abuse of natural resources, along with the expansion of population had gradually caused

A Review of Air Pollution Control Policy Development and Effectiveness in China

http://dx.doi.org/10.5772/intechopen.74928

5

The United Nations Conference on the Human Environment, held in Stockholm, Swedish in 1972 motivated China to address the increasingly serious environmental problems in this country, and significantly improved China's understanding of this issue. A conference on stack dust removal was held in Shanghai in 1972 that led to a pilot emission control project in Shenyang, one of China's most air-polluted cities located in Eastern-north part [5]. Perhaps

In 1973, the State Planning Commission convened a national conference on environmental protection. The conference led to China's first State Council Directive on environmental protection, named "Some Regulations on Protecting and Improving the Environment," which signified the beginning of official environmental protection work in China, and included some industrial emissions standards for air pollutants such as particles. It covered only power plants, boilers, steel-smelting furnaces, and cement plants, which were arguably the most significant point sources in urban areas [4]. When China first began to develop regulations for air pollution control in late 1970s, China did not adopt the technology-standard approach that was then popular in the USA and some other OECD countries [4]. The main guideline of the Directive was to incorporate environmental considerations into planning while not retarding economic development [5]. The idea of pollution control, however, was not clearly indicated in the document. Following the conference, China began to establish a bureaucratic structure to deal with environmental problems: in October 1974, a leading group for environmental protection under the State Council was set up with a small staff of 20, and following that, similar units were also formed at the provincial level in many

McElroy argued that the US air pollution legislation had a problem-trailing character because it addressed only problems that were already apparent, many of them unanticipated when the responsible technologies were first introduced [7]. In this regard, China was without exception, or even in a worse situation than the USA. Over the history, China's environmental decision-making seemed to mainly pay attention to environmental damages when the problems were already fairly obvious, risking serious long-term environmental and resource

severe threats to China's environment as well as natural resources.

this was China's first formal air pollution control project.

destruction, which can be very expensive to cure later.

parts of China.

While China is confronted with one of the highest levels of air pollution in the world, rapid economic and social changes challenge policy design and implementation for the endeavors to reduce pollution. The problem of regulating air pollution is complex, not only because it involves many different pollutant emitters, but also because regulations involve many institutions that cut across domains of environment, energy, natural resource, public health, and economic policy [4]. Policies that work well in western developed countries can fail in a less developed country for any economic, social, and institutional reasons [4]. In China, the central government has been addressing this issue since late 1970s and has promulgated a series of laws, regulations as well as programs to mitigate pollution. However, although China has worked diligently for more than three decades to address its air pollution issue, the current pollution levels are still severe across the country. This has raised the questions that how successful the air quality policies have been in terms of policy design, enforcement and effectiveness. This chapter reviews the development of the air pollution control policies in China's nearly 70 years' history, focusing on its basic structure and distinct features, addressing some political and institutional factors that have resulted in the ineffectiveness of policy implementation. A comparison of control policies between China and the USA is conducted to highlight their similarities and differences, followed by a few conclusion remarks for future air pollution designs and implementations in China. The purpose of this chapter is to inform decision makers, particularly in the developing world, with some insights of improving policy designs and environmental governance in the control of air pollution.

#### **2. China's air pollution control policy development and effectiveness**

#### **2.1. Environmental policies before China's 1979 economic reform a brief history2**

For many years before China's reform of the economic system in 1979, pollution was a so-called nonissue in China [5]. For example, only a few regulatory standards (largely oriented to occupational health) based on Soviet practice were promulgated in 1956 and revised in 1962 but were almost ineffective [6]. For almost two decades (1950s and 1960s), China's economic sector paid very little attention to pollution control because it was neither included in enterprise norms and received state investment funds, nor did it receive public concerns [5].

<sup>1</sup> The World Health Organization (WHO) recommended annual PM2.5 level is 10 μg/m<sup>3</sup> .

<sup>2</sup> Historical issues in this section were heavily informed by [5].

China's lack of pollution control, both ideologically and practically, both by governmental actions and by general public demand, was because of several reasons: first, during that period China placed the policy priority exclusively on economic development, particularly the development of heavy industries, so as to fulfill rapid industrialization in this country; second, China's political isolation from the western world made this nation slow in understanding and participating in the world's increasing concerns about pollution in 1960s, which was even aggravated by the anti-intellectual ferment of the Cultural Revolution from 1966 through 1976 [5]; third, because of the poor income levels and living conditions in general, Chinese people were the most concerned with basic life demands such as food and clothes, and therefore little heed had been taken of environmental issues. However, the development of heavy industries in this period and the ubiquitous use of "dirt" technologies as well as abuse of natural resources, along with the expansion of population had gradually caused severe threats to China's environment as well as natural resources.

living in areas where air quality did not meet China's annual average PM2.5 standard of

China, resulting in enormous economic loss. For instance, a recent evaluation estimated that the health-related economic loss in China's 74 cities caused by PM10 and sulfur dioxide (SO2

While China is confronted with one of the highest levels of air pollution in the world, rapid economic and social changes challenge policy design and implementation for the endeavors to reduce pollution. The problem of regulating air pollution is complex, not only because it involves many different pollutant emitters, but also because regulations involve many institutions that cut across domains of environment, energy, natural resource, public health, and economic policy [4]. Policies that work well in western developed countries can fail in a less developed country for any economic, social, and institutional reasons [4]. In China, the central government has been addressing this issue since late 1970s and has promulgated a series of laws, regulations as well as programs to mitigate pollution. However, although China has worked diligently for more than three decades to address its air pollution issue, the current pollution levels are still severe across the country. This has raised the questions that how successful the air quality policies have been in terms of policy design, enforcement and effectiveness. This chapter reviews the development of the air pollution control policies in China's nearly 70 years' history, focusing on its basic structure and distinct features, addressing some political and institutional factors that have resulted in the ineffectiveness of policy implementation. A comparison of control policies between China and the USA is conducted to highlight their similarities and differences, followed by a few conclusion remarks for future air pollution designs and implementations in China. The purpose of this chapter is to inform decision makers, particularly in the developing world, with some insights of improving policy designs and environmental governance in

**2. China's air pollution control policy development and effectiveness**

For many years before China's reform of the economic system in 1979, pollution was a so-called nonissue in China [5]. For example, only a few regulatory standards (largely oriented to occupational health) based on Soviet practice were promulgated in 1956 and revised in 1962 but were almost ineffective [6]. For almost two decades (1950s and 1960s), China's economic sector paid very little attention to pollution control because it was neither included in enterprise norms and received state investment funds, nor did it receive

.

**2.1. Environmental policies before China's 1979 economic reform a brief history2**

The World Health Organization (WHO) recommended annual PM2.5 level is 10 μg/m<sup>3</sup>

Historical issues in this section were heavily informed by [5].

Air pollution has caused serious public health and environmental damages in

)

35 μg/m<sup>3</sup>

[2].1

the control of air pollution.

public concerns [5].

1

2

ranged from 1.63 and 2.32% of the GDP [3].

4 Energy Management for Sustainable Development

The United Nations Conference on the Human Environment, held in Stockholm, Swedish in 1972 motivated China to address the increasingly serious environmental problems in this country, and significantly improved China's understanding of this issue. A conference on stack dust removal was held in Shanghai in 1972 that led to a pilot emission control project in Shenyang, one of China's most air-polluted cities located in Eastern-north part [5]. Perhaps this was China's first formal air pollution control project.

In 1973, the State Planning Commission convened a national conference on environmental protection. The conference led to China's first State Council Directive on environmental protection, named "Some Regulations on Protecting and Improving the Environment," which signified the beginning of official environmental protection work in China, and included some industrial emissions standards for air pollutants such as particles. It covered only power plants, boilers, steel-smelting furnaces, and cement plants, which were arguably the most significant point sources in urban areas [4]. When China first began to develop regulations for air pollution control in late 1970s, China did not adopt the technology-standard approach that was then popular in the USA and some other OECD countries [4]. The main guideline of the Directive was to incorporate environmental considerations into planning while not retarding economic development [5]. The idea of pollution control, however, was not clearly indicated in the document. Following the conference, China began to establish a bureaucratic structure to deal with environmental problems: in October 1974, a leading group for environmental protection under the State Council was set up with a small staff of 20, and following that, similar units were also formed at the provincial level in many parts of China.

McElroy argued that the US air pollution legislation had a problem-trailing character because it addressed only problems that were already apparent, many of them unanticipated when the responsible technologies were first introduced [7]. In this regard, China was without exception, or even in a worse situation than the USA. Over the history, China's environmental decision-making seemed to mainly pay attention to environmental damages when the problems were already fairly obvious, risking serious long-term environmental and resource destruction, which can be very expensive to cure later.

#### **2.2. China's major air quality regulations during 1980s and 1990s**

As discussed in previous section, before the 1978 political and economic reform, China's environmental governance had been relatively inert, and compared with the western countries such as the USA, who began to nationalize pollution control soon after the publication of Rachel Carson's influential book *Silent Spring*, the government responded to accumulating environmental issues more than one decades behind. Once the Chinese government began to respond, how effective it has been to improve environmental quality and protect natural resource? It seems that it had not been fairly effective during the decades of 1980s and 1990s, at least in terms of stopping the deterioration of environmental quality. With regard to air quality, no significant improvement was observed in major air-polluted cities. For instance, the annual mean concentrations of TSP and SO2 for five large Chinese cities (Beijing, Shenyang, Xi'an, Shanghai, and Guanzhou) during 11 years (1981–1991) did not change apparently and continuously violated the WHO recommending limit to a large extent [8]. Deng Xiaoping's political and economic reform in 1979 is a turning point for China's environmental protection. As China was infused with the idea of sustainable development, and more importantly, as the government became increasingly concerned with and better understanding the environmental destruction resulting from economic development during 1970s, they started issuing measures of pollution control and natural resources protection.

emission standards targeting industrial facilities (particularly coal-fired power plants) and

Despite of about 30 environmental laws and hundreds of regulations, standards and programs and agencies that provide a foundation for curtailing further degradation, it seems that China's environmental quality has not been considerably improved for decades. Scholars have argued that a significant gap exists between the goals embodied in China's environmental laws and regulations and their actual effects [10, 11]. In the succeeding section, this problem will be discussed by investigating the design, implementation and effectiveness of China's pollution levy system, one of the major national programs targeting industrial emissions.

First promulgated in 1979, China's Environmental Protection Law established national and

discharge standards, and directed enterprises to assess environmental impacts of proposed projects and ensured that new projects satisfied applicable environmental standards [10]. For the first time, it formally stipulated the polluter pays principle and based upon this, authorized the creation of a pollution levy system to assess fees on all enterprises for pollution emissions that exceed standards, and it also required that new facilities demonstrate design compliance with emissions standards as a condition of obtaining a construction permit [12].

Preliminary discussion of a possible pollution charge system (pollutant discharge fees) began in China after the Stockholm Human Environment Conference in 1972. The idea was formally adopted by the central government in 1978, when the Leaders Group for Environmental Protection in the State Council provided a work report to the Central Committee of the Chinese Communist Party. The report stated "Pollution source control should be an important component of environmental management; fees should be charged against pollution discharge; and environmental protection authorities, in cooperation with other departments, should set up a detailed levy schedule." Several local governments immediately began experimenting with charges, and by the end of 1981, 27 of China's 29 provinces, autonomous regions and municipalities had established programs of some type. After studying these local experiences, the central government issued an "Interim Procedure on Pollution Charges" in February, 1982. The procedure defined the system's objectives, principles, levy standards, levy collection methods, and principles for fund use. Under the pollution levy system, enterprises must pay fees for releases on air-borne and water-borne pollutants that violate standards on emissions and effluents, and typically, fees are based on the pollution indicator that exceeds the

Environmental Protection Bureaus (EPB) is China's main government agency created under China's basic environmental law in charge of environmental protection tasks. All levels of governments (e.g. central, provincial, municipal, and

Unless noted, information on China's pollution levy system development in the succeeding paragraph was cited from

required polluters to comply with waste

http://dx.doi.org/10.5772/intechopen.74928

7

 *and monitoring network*

A Review of Air Pollution Control Policy Development and Effectiveness in China

motor vehicles (refer to **Table A1** in the Appendix).

local Environmental Protection Bureaus (EPB),4

*2.2.2.1. The development of the pollution levy system5*

discharge standard by the greatest amount [10].

county) have their own EPB as one of the government agencies.

4

5

[13].

*2.2.2. China's pollution levy system*

A salient characteristic of China's air pollution issue is that, like many developing countries, the early stages of industrial growth were pursued without much investment in environmental protection, leading to heavy air pollution in urban areas [4]. Brandon and Ramankutty called it "grow first, clean up later" environmental strategies and argued that they had resulted in serious environmental problems such as exceedingly polluted air [9]. The essential problem is, arguably, that a fairly significant gap has existed between the goals embodied in China's environmental laws and regulations and actual levels of environmental quality [10].

#### *2.2.1. China's air pollution regulation: an overview*

Since the government began responding to environmental issues at the national level in late 1970s, they became increasingly active in promulgating environmental laws and issuing legally binding administrative regulations, as well as organizing regulatory agencies at different levels of governments. Two types of environmental statutes exist in China: a "basic law," namely, *People's Republic of China National Environmental Law*, and specific environmental laws to direct particular issues such as air pollution, water pollution, natural resources and ecosystem protection, and so forth [10]. With regard to air pollution, the special environmental law is *People's Republic of China Air Pollution Prevention and Control Law*, which was first enacted in 1987, and then was subsequently revised twice in 1995 and 2000, respectively, and most recently in 2015 in response to the urgent air pollution in China.<sup>3</sup> Besides laws, regulations on air pollution include the National Ambient Air Quality Standards (NAAQSs) and various

<sup>3</sup> Source: The website of the National People's Congress of the People's Republic of China, http://www.npc.gov.cn/npc/ xinwen/2015-08/31/content\_1945589.htm. Accessed December 1, 2017.

emission standards targeting industrial facilities (particularly coal-fired power plants) and motor vehicles (refer to **Table A1** in the Appendix).

Despite of about 30 environmental laws and hundreds of regulations, standards and programs and agencies that provide a foundation for curtailing further degradation, it seems that China's environmental quality has not been considerably improved for decades. Scholars have argued that a significant gap exists between the goals embodied in China's environmental laws and regulations and their actual effects [10, 11]. In the succeeding section, this problem will be discussed by investigating the design, implementation and effectiveness of China's pollution levy system, one of the major national programs targeting industrial emissions.

#### *2.2.2. China's pollution levy system*

**2.2. China's major air quality regulations during 1980s and 1990s**

measures of pollution control and natural resources protection.

recently in 2015 in response to the urgent air pollution in China.<sup>3</sup>

xinwen/2015-08/31/content\_1945589.htm. Accessed December 1, 2017.

annual mean concentrations of TSP and SO2

6 Energy Management for Sustainable Development

*2.2.1. China's air pollution regulation: an overview*

quality [10].

3

As discussed in previous section, before the 1978 political and economic reform, China's environmental governance had been relatively inert, and compared with the western countries such as the USA, who began to nationalize pollution control soon after the publication of Rachel Carson's influential book *Silent Spring*, the government responded to accumulating environmental issues more than one decades behind. Once the Chinese government began to respond, how effective it has been to improve environmental quality and protect natural resource? It seems that it had not been fairly effective during the decades of 1980s and 1990s, at least in terms of stopping the deterioration of environmental quality. With regard to air quality, no significant improvement was observed in major air-polluted cities. For instance, the

Xi'an, Shanghai, and Guanzhou) during 11 years (1981–1991) did not change apparently and continuously violated the WHO recommending limit to a large extent [8]. Deng Xiaoping's political and economic reform in 1979 is a turning point for China's environmental protection. As China was infused with the idea of sustainable development, and more importantly, as the government became increasingly concerned with and better understanding the environmental destruction resulting from economic development during 1970s, they started issuing

A salient characteristic of China's air pollution issue is that, like many developing countries, the early stages of industrial growth were pursued without much investment in environmental protection, leading to heavy air pollution in urban areas [4]. Brandon and Ramankutty called it "grow first, clean up later" environmental strategies and argued that they had resulted in serious environmental problems such as exceedingly polluted air [9]. The essential problem is, arguably, that a fairly significant gap has existed between the goals embodied in China's environmental laws and regulations and actual levels of environmental

Since the government began responding to environmental issues at the national level in late 1970s, they became increasingly active in promulgating environmental laws and issuing legally binding administrative regulations, as well as organizing regulatory agencies at different levels of governments. Two types of environmental statutes exist in China: a "basic law," namely, *People's Republic of China National Environmental Law*, and specific environmental laws to direct particular issues such as air pollution, water pollution, natural resources and ecosystem protection, and so forth [10]. With regard to air pollution, the special environmental law is *People's Republic of China Air Pollution Prevention and Control Law*, which was first enacted in 1987, and then was subsequently revised twice in 1995 and 2000, respectively, and most

on air pollution include the National Ambient Air Quality Standards (NAAQSs) and various

Source: The website of the National People's Congress of the People's Republic of China, http://www.npc.gov.cn/npc/

for five large Chinese cities (Beijing, Shenyang,

Besides laws, regulations

First promulgated in 1979, China's Environmental Protection Law established national and local Environmental Protection Bureaus (EPB),4 required polluters to comply with waste discharge standards, and directed enterprises to assess environmental impacts of proposed projects and ensured that new projects satisfied applicable environmental standards [10]. For the first time, it formally stipulated the polluter pays principle and based upon this, authorized the creation of a pollution levy system to assess fees on all enterprises for pollution emissions that exceed standards, and it also required that new facilities demonstrate design compliance with emissions standards as a condition of obtaining a construction permit [12].

#### *2.2.2.1. The development of the pollution levy system5 and monitoring network*

Preliminary discussion of a possible pollution charge system (pollutant discharge fees) began in China after the Stockholm Human Environment Conference in 1972. The idea was formally adopted by the central government in 1978, when the Leaders Group for Environmental Protection in the State Council provided a work report to the Central Committee of the Chinese Communist Party. The report stated "Pollution source control should be an important component of environmental management; fees should be charged against pollution discharge; and environmental protection authorities, in cooperation with other departments, should set up a detailed levy schedule." Several local governments immediately began experimenting with charges, and by the end of 1981, 27 of China's 29 provinces, autonomous regions and municipalities had established programs of some type. After studying these local experiences, the central government issued an "Interim Procedure on Pollution Charges" in February, 1982. The procedure defined the system's objectives, principles, levy standards, levy collection methods, and principles for fund use. Under the pollution levy system, enterprises must pay fees for releases on air-borne and water-borne pollutants that violate standards on emissions and effluents, and typically, fees are based on the pollution indicator that exceeds the discharge standard by the greatest amount [10].

<sup>4</sup> Environmental Protection Bureaus (EPB) is China's main government agency created under China's basic environmental law in charge of environmental protection tasks. All levels of governments (e.g. central, provincial, municipal, and county) have their own EPB as one of the government agencies.

<sup>5</sup> Unless noted, information on China's pollution levy system development in the succeeding paragraph was cited from [13].

Monitoring compliance is a key step of implementing pollution levy system. To what extent industrial firms obey the rules heavily depends on their beliefs in how likely their emission activities would be monitored and discovered. Article 23 of People's Republic of China Air Pollution Prevention and Control Law authorizes the state and local environmental agencies to design standard monitoring methods and direct to set up environmental monitoring networks and release the information on air quality to the public.6 Based on this, the EPBs at all levels organize their affiliates of local environmental monitoring stations. Monitoring stations are responsible for checking up on polluters' activities, and EPBs are authorized to penalize enterprises that fail to meet emission standards [10]. To determine the actual pollution levels, on the one hand, enterprises are often required to monitor their waste releases (a process called "self-monitoring"), and to report results to environmental agencies ("self-reporting"), and on the other hand, state and local EPBs conduct periodic facility inspections to gauge the reliability of self-reported data [10]. Specifically, staffs of the environmental monitoring station regularly collect samples outside a facility, analyzes the samples, and submits results to the environmental inspection station, which are another affiliate of a local EPB [10]. The inspection station then determines the total pollution charges and report to their affiliated local EPBs. Ma and Ortolano argued that the Chinese system for self-monitoring differs from the one in the USA in that US permit holders that falsify data are subject to severe penalties under both civil and criminal law [10]. However in China, there were many cases that the self-reported data were not reliable. Therefore, regulators often rely on their own monitoring information to determine the levies.

*2.2.2.2. Conflicts between economic and environmental goals*

Andrews argued that the creation of environmental policy often involves conflicts among exclusive preferences, and "such conflicts are far less amenable to political compromise or compensation than other policy issues" [15]. As China is in the stage of rapid industrialization, the conflicts between economic development and environmental protection often become salient, whereas it seems that environmental policy design has not adequately considered these inherent conflicts. Case studies in [10] indicated that typically the Mayor's Offices in China try to balance their obligations for both economic development and environmental protection, and they usually favors industrial growth over pollution abatement when both goals conflict, although China's fundamental environmental protection law explicitly stipulates that governments at all levels (national, provincial, municipal, county, etc.) are responsible for environmental protection within their jurisdictions. Their case studies found that work can be intervened by upper level government or other government agencies. For instance, mayor's offices asked local EPBs to approve a new project even though it failed to satisfy environmental regulations, or forced EPBs not to enforce any penalties when environmental regulations were violated. An example that higher level governments were involved in the enforcement of pollution levy is: the mayor's office forced the local EPB to return the pollutant discharge fees that they had collected from a noncompliant plant because the office argued that the facility had financial problems and the penalty fees had made its economic position even worse. Eventually the local EPB had to return the fees. As a result, the polluting facility was implicitly allowed to continue with their emissions that violated the standard. In some other cases, for the purpose of their own prestige, the government leaders just offset the EPB's penalty on an industrial enterprise by giving the enterprise a tax break proportioned to the size of the fee. Ma and Ortolano concluded from their extensive case studies in China that "the instances in which a mayor's office interfered with an EPB's work are common" [10]. This kind of "government failure" phenomena happened for two main reasons: first, China's post-1978 decentralization policies gave local officials strong financial incentives to expand their economies—as a consequence of decentralization, much municipal government revenue comes from enterprises in the form of taxes, and thus often favor industrial development over pollution control [10]; second, apart from producing revenue, for a long time in China, creation of jobs (lower unemployment rate), income of residents as well as other economic indexes have been the indicators of government accomplishment. Consequently, government leaders have strong incentives to improve these evidence in order to have more reputation, perhaps seeking for promotions. To tackle this problem, Jahiel argued that China would have to "significantly weaken the regional economic interests that make environmental inter-jurisdictional co-ordination so complex and contentious" [16]; third, China's environmental protection apparatus (such as EPBs) had suffered from insufficient authority and lack of co-ordination between institutional actors [16]. In the government administrative hierarchy, EPBs stay at the same level as other agencies such as economic commission, planning commission, industrial bureaus, etc., but they are all at a lower level than central leaders such as Mayor's Office of a city. In most cases, local EPBs (at provincial, city, or county levels) do not have sufficient authority or independent roles for environmental regulation; fourth, because China's environmental laws are general and often intentionally ambiguous, they allow the State Council, national

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9

After a few years' discussion, preparation, and experimenting, nationwide implementation of the pollution levy system rapidly followed in 1982, which has turned out to be one of the Chinese government's major responses to the deteriorating environmental problems since 1980s. During the 1980s and 1990s, almost all of China's counties and cities have implemented the levy system. As a national environmental regulatory program, the pollution levy system was originally created both to penalize industrial polluters who exceed emission standards and to fund local environment bureaus [4].

China's environmental regulation in the 1980s and 1990s was largely a "direct regulation" or "command-and-control" system: the required behavior of enterprises was spelled out and sanctions were imposed if requirements were violated [4]. Although the pollution levy system can be considered as a market-like policy instrument, it still heavily relied on government regulations [14]. The levy system is based on a discharge standard system, and only discharges exceeding the standards are subject to a fee. However, management options look good on paper may fail in reality. In China's pollution control practice, regulatory behaviors were confronted with resource obstacles, institutional conflicts as well as budget limits, which were not anticipated while designing policies. In the next section, some specific issues in the implementation of China's pollution levy system will be reviewed and critically analyzed.

<sup>6</sup> Source: The website of the National People's Congress of the People's Republic of China, http://www.npc.gov.cn/npc/ xinwen/2015-08/31/content\_1945589.htm. Accessed December 1, 2017.

#### *2.2.2.2. Conflicts between economic and environmental goals*

Monitoring compliance is a key step of implementing pollution levy system. To what extent industrial firms obey the rules heavily depends on their beliefs in how likely their emission activities would be monitored and discovered. Article 23 of People's Republic of China Air Pollution Prevention and Control Law authorizes the state and local environmental agencies to design standard monitoring methods and direct to set up environmental moni-

the EPBs at all levels organize their affiliates of local environmental monitoring stations. Monitoring stations are responsible for checking up on polluters' activities, and EPBs are authorized to penalize enterprises that fail to meet emission standards [10]. To determine the actual pollution levels, on the one hand, enterprises are often required to monitor their waste releases (a process called "self-monitoring"), and to report results to environmental agencies ("self-reporting"), and on the other hand, state and local EPBs conduct periodic facility inspections to gauge the reliability of self-reported data [10]. Specifically, staffs of the environmental monitoring station regularly collect samples outside a facility, analyzes the samples, and submits results to the environmental inspection station, which are another affiliate of a local EPB [10]. The inspection station then determines the total pollution charges and report to their affiliated local EPBs. Ma and Ortolano argued that the Chinese system for self-monitoring differs from the one in the USA in that US permit holders that falsify data are subject to severe penalties under both civil and criminal law [10]. However in China, there were many cases that the self-reported data were not reliable. Therefore, regulators often rely on their own monitoring information to determine

After a few years' discussion, preparation, and experimenting, nationwide implementation of the pollution levy system rapidly followed in 1982, which has turned out to be one of the Chinese government's major responses to the deteriorating environmental problems since 1980s. During the 1980s and 1990s, almost all of China's counties and cities have implemented the levy system. As a national environmental regulatory program, the pollution levy system was originally created both to penalize industrial polluters who exceed emission standards

China's environmental regulation in the 1980s and 1990s was largely a "direct regulation" or "command-and-control" system: the required behavior of enterprises was spelled out and sanctions were imposed if requirements were violated [4]. Although the pollution levy system can be considered as a market-like policy instrument, it still heavily relied on government regulations [14]. The levy system is based on a discharge standard system, and only discharges exceeding the standards are subject to a fee. However, management options look good on paper may fail in reality. In China's pollution control practice, regulatory behaviors were confronted with resource obstacles, institutional conflicts as well as budget limits, which were not anticipated while designing policies. In the next section, some specific issues in the implementation of China's pollution levy system will be reviewed and

Source: The website of the National People's Congress of the People's Republic of China, http://www.npc.gov.cn/npc/

Based on this,

toring networks and release the information on air quality to the public.6

the levies.

critically analyzed.

6

and to fund local environment bureaus [4].

8 Energy Management for Sustainable Development

xinwen/2015-08/31/content\_1945589.htm. Accessed December 1, 2017.

Andrews argued that the creation of environmental policy often involves conflicts among exclusive preferences, and "such conflicts are far less amenable to political compromise or compensation than other policy issues" [15]. As China is in the stage of rapid industrialization, the conflicts between economic development and environmental protection often become salient, whereas it seems that environmental policy design has not adequately considered these inherent conflicts. Case studies in [10] indicated that typically the Mayor's Offices in China try to balance their obligations for both economic development and environmental protection, and they usually favors industrial growth over pollution abatement when both goals conflict, although China's fundamental environmental protection law explicitly stipulates that governments at all levels (national, provincial, municipal, county, etc.) are responsible for environmental protection within their jurisdictions. Their case studies found that work can be intervened by upper level government or other government agencies. For instance, mayor's offices asked local EPBs to approve a new project even though it failed to satisfy environmental regulations, or forced EPBs not to enforce any penalties when environmental regulations were violated. An example that higher level governments were involved in the enforcement of pollution levy is: the mayor's office forced the local EPB to return the pollutant discharge fees that they had collected from a noncompliant plant because the office argued that the facility had financial problems and the penalty fees had made its economic position even worse. Eventually the local EPB had to return the fees. As a result, the polluting facility was implicitly allowed to continue with their emissions that violated the standard. In some other cases, for the purpose of their own prestige, the government leaders just offset the EPB's penalty on an industrial enterprise by giving the enterprise a tax break proportioned to the size of the fee. Ma and Ortolano concluded from their extensive case studies in China that "the instances in which a mayor's office interfered with an EPB's work are common" [10]. This kind of "government failure" phenomena happened for two main reasons: first, China's post-1978 decentralization policies gave local officials strong financial incentives to expand their economies—as a consequence of decentralization, much municipal government revenue comes from enterprises in the form of taxes, and thus often favor industrial development over pollution control [10]; second, apart from producing revenue, for a long time in China, creation of jobs (lower unemployment rate), income of residents as well as other economic indexes have been the indicators of government accomplishment. Consequently, government leaders have strong incentives to improve these evidence in order to have more reputation, perhaps seeking for promotions. To tackle this problem, Jahiel argued that China would have to "significantly weaken the regional economic interests that make environmental inter-jurisdictional co-ordination so complex and contentious" [16]; third, China's environmental protection apparatus (such as EPBs) had suffered from insufficient authority and lack of co-ordination between institutional actors [16]. In the government administrative hierarchy, EPBs stay at the same level as other agencies such as economic commission, planning commission, industrial bureaus, etc., but they are all at a lower level than central leaders such as Mayor's Office of a city. In most cases, local EPBs (at provincial, city, or county levels) do not have sufficient authority or independent roles for environmental regulation; fourth, because China's environmental laws are general and often intentionally ambiguous, they allow the State Council, national agencies, and local governments to add details that influence implementation [10]. Most day-to-day implementation of a national environmental law occurs at the local level [10]. Typically, local governments respond to national edicts by producing their own versions of national regulations, notices, etc.; and due to the ambiguity of the national laws, local government has a big opportunity to design local environmental regulations to their own interests whereas not visibly inconsistent with national legal enactments [10]. All these lingering problems seem to facilitate government's self-interests against environmental goals, particularly at local levels. As the highest administrative government official has enormous incentives to promote local economic development, and they have more powerful jurisdiction than environmental protection apparatus, it is very likely that they would intervene local EPBs' work when preference conflicts are involved in decision-making process [10]. Andrews discussed this kind of "intrinsic hazards of governance processes" as "government decisions are routinely designed to promote the short-term self-interests of public officials, perhaps at the price of long-run environmental damage," and "governments tend to externalize the environmental costs of their decisions" [15]. Not surprisingly, these shortcomings of government behaviors are responsible for China's environmental deterioration in the past despite of the extensive efforts to address the issues.

laws, but on the criteria to maximize their own revenues. Not surprisingly, due to regulators' rent-seeking behaviors, the pollution levy system works less effective than expected in terms of

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11

The transit from planned to market economy had substantial influence on China's air quality, and policy designs and implementation to control air pollution as well. One issue of concern has been the impacts of China's state-owned enterprise (SOEs) on the environment upon their changes resulting from China's economic reform. For instance, upon the reform, SOEs had become increasingly depended on bank loans and retained profits to finance investment other than on government funds as previous [10]. It resulted in disincentives for SOEs to invest on environmental projects, since these projects had to compete for capital against factory renovation and expansion projects [10]. Furthermore, since late 1980s, the fraction of SOEs incurring net losses had increased rapidly: For example, the percentages of industrial SOEs losing money rose from 13% in 1986 to 44% in 1995 [18]. Money-losing SOEs pose serious environmental concerns. Local EPBs tended to avoid requiring these enterprises to satisfy environmental requirements because the money to pay for environmental facilities would generally have to come from the state. Moreover, local government leaders would be unlikely to support an EPB that imposed demand on a money-losing SOE supporting large numbers of workers or retirees [10]. However, on the other hand, China's rapid economic growth, particularly since 1990s, also has positive impacts on air quality. Although economic growth has increased the variety and magnitude of emission-generating activities, which result in more emissions, it also generates the wealth needed to build a stronger infrastructure for environmental management of industry [4]. Likewise, in the household sector, economic growth has helped households move up the energy ladder, replacing dirty fuels with cleaner ones [4]. With respect to SOEs, the bankruptcies and mergers resulting from the on-going program of SOE reform since 1990s have shut down many old industrial facilities that were large, inefficient consumers of energy (mainly coal, China's most important fuel) [19], which implies a significant contribution to the

In the preceding discussion, several factors were examined that have resulted in significant gap between the goals and effects of China's pollution levy system. While they are still far away from indicating all the reasons attributable to ineffectiveness of the system, they do shed light on some government failure problems and institutional barriers common in China's environmental regulation during the decades of 1980s and 1990s. Jin et al. summarized four major limitations of air pollution control policies during that early time period as follows: (1) the general absence of environmental rights and interests; (2) lack of regional co-ordination in air quality management; (3) lack of monitoring capacity; and (4) weak laws and regulations [11].

**2.3. New air pollution concerns and some major changes in control policies since** 

*2.3.1. A brief overview of the air quality trend in China's major cities over the past two decades*

Since the 1990s, China has seen some improvement in ambient air quality in major cities, par-

. **Figure 1**, adopted from [11], summarizes the annual average levels

in China's seven megacities between 1996 and 2014. Although the levels

emission control.

decrease of emissions from these sections [4].

**2000s**

of SO2

ticularly the levels of SO2

, PM10, and NO2

#### *2.2.2.3. Revenue-driven environmental regulators*

Not only the governmental agencies other than environmental regulators can unfavorably affect the implementation of policies targeting pollution control, but also the environmental regulators (in most cases local EPBs) themselves would favor some other preferences over environmental goals. In practice, this damages the effectiveness of environmental policies. EPBs may act as self-interested politicians whose decisions can lead to environmental costs to the society. With regard to China's national pollution levy program, examples include that the regulators simply collect fees to maximize their own revenues, irrespective of the ultimate purpose of pollution abatement; they may act inconsistently with the laws, or strategically to their own preferences. Public choice theory argues that politicians, just like people who act in the free market, are motivated by self-interest. Using public choice theory, Schneider and Volkert argued that an incentive-oriented environmental policy has hardly any chance of being implemented, and pure environmental interest groups are difficult to organize [17].

Under China's pollution levy system, local EPBs are supposed to respond to violations of environmental rules through several enforcement options including issuing warnings, imposing fees, revoking emission permits (which are issued to each industrial facilities under the pollution levy system), and gaining court assistance to collect fees, in the order from the least to the most severe degrees in terms of EPBs' enforcement actions [10]. Although as mentioned before, the primary purpose of pollution levy is to provide incentives to industrial pollutants to mitigate their emissions, and a supplementary intension is to fund local environment bureaus. However, in many cases, the latter has become regulators' essential goal. Ma and Ortolano, through their case studies in six large industrial cities, concluded that what EPB actually did were often different from what they were authorized to do [10]. For instance, in some cases they imposed heavy penalties, and in others they helped enterprises resolve their noncompliance problems and imposed no sanctions at all, and usually the decisions were made for their own benefits. Examples include calculating the pollution discharge fees not based on what is set by laws, but on the criteria to maximize their own revenues. Not surprisingly, due to regulators' rent-seeking behaviors, the pollution levy system works less effective than expected in terms of emission control.

agencies, and local governments to add details that influence implementation [10]. Most day-to-day implementation of a national environmental law occurs at the local level [10]. Typically, local governments respond to national edicts by producing their own versions of national regulations, notices, etc.; and due to the ambiguity of the national laws, local government has a big opportunity to design local environmental regulations to their own interests whereas not visibly inconsistent with national legal enactments [10]. All these lingering problems seem to facilitate government's self-interests against environmental goals, particularly at local levels. As the highest administrative government official has enormous incentives to promote local economic development, and they have more powerful jurisdiction than environmental protection apparatus, it is very likely that they would intervene local EPBs' work when preference conflicts are involved in decision-making process [10]. Andrews discussed this kind of "intrinsic hazards of governance processes" as "government decisions are routinely designed to promote the short-term self-interests of public officials, perhaps at the price of long-run environmental damage," and "governments tend to externalize the environmental costs of their decisions" [15]. Not surprisingly, these shortcomings of government behaviors are responsible for China's environmental deterioration

Not only the governmental agencies other than environmental regulators can unfavorably affect the implementation of policies targeting pollution control, but also the environmental regulators (in most cases local EPBs) themselves would favor some other preferences over environmental goals. In practice, this damages the effectiveness of environmental policies. EPBs may act as self-interested politicians whose decisions can lead to environmental costs to the society. With regard to China's national pollution levy program, examples include that the regulators simply collect fees to maximize their own revenues, irrespective of the ultimate purpose of pollution abatement; they may act inconsistently with the laws, or strategically to their own preferences. Public choice theory argues that politicians, just like people who act in the free market, are motivated by self-interest. Using public choice theory, Schneider and Volkert argued that an incentive-oriented environmental policy has hardly any chance of being implemented, and pure environmental interest groups are difficult to organize [17].

Under China's pollution levy system, local EPBs are supposed to respond to violations of environmental rules through several enforcement options including issuing warnings, imposing fees, revoking emission permits (which are issued to each industrial facilities under the pollution levy system), and gaining court assistance to collect fees, in the order from the least to the most severe degrees in terms of EPBs' enforcement actions [10]. Although as mentioned before, the primary purpose of pollution levy is to provide incentives to industrial pollutants to mitigate their emissions, and a supplementary intension is to fund local environment bureaus. However, in many cases, the latter has become regulators' essential goal. Ma and Ortolano, through their case studies in six large industrial cities, concluded that what EPB actually did were often different from what they were authorized to do [10]. For instance, in some cases they imposed heavy penalties, and in others they helped enterprises resolve their noncompliance problems and imposed no sanctions at all, and usually the decisions were made for their own benefits. Examples include calculating the pollution discharge fees not based on what is set by

in the past despite of the extensive efforts to address the issues.

*2.2.2.3. Revenue-driven environmental regulators*

10 Energy Management for Sustainable Development

The transit from planned to market economy had substantial influence on China's air quality, and policy designs and implementation to control air pollution as well. One issue of concern has been the impacts of China's state-owned enterprise (SOEs) on the environment upon their changes resulting from China's economic reform. For instance, upon the reform, SOEs had become increasingly depended on bank loans and retained profits to finance investment other than on government funds as previous [10]. It resulted in disincentives for SOEs to invest on environmental projects, since these projects had to compete for capital against factory renovation and expansion projects [10]. Furthermore, since late 1980s, the fraction of SOEs incurring net losses had increased rapidly: For example, the percentages of industrial SOEs losing money rose from 13% in 1986 to 44% in 1995 [18]. Money-losing SOEs pose serious environmental concerns. Local EPBs tended to avoid requiring these enterprises to satisfy environmental requirements because the money to pay for environmental facilities would generally have to come from the state. Moreover, local government leaders would be unlikely to support an EPB that imposed demand on a money-losing SOE supporting large numbers of workers or retirees [10].

However, on the other hand, China's rapid economic growth, particularly since 1990s, also has positive impacts on air quality. Although economic growth has increased the variety and magnitude of emission-generating activities, which result in more emissions, it also generates the wealth needed to build a stronger infrastructure for environmental management of industry [4]. Likewise, in the household sector, economic growth has helped households move up the energy ladder, replacing dirty fuels with cleaner ones [4]. With respect to SOEs, the bankruptcies and mergers resulting from the on-going program of SOE reform since 1990s have shut down many old industrial facilities that were large, inefficient consumers of energy (mainly coal, China's most important fuel) [19], which implies a significant contribution to the decrease of emissions from these sections [4].

In the preceding discussion, several factors were examined that have resulted in significant gap between the goals and effects of China's pollution levy system. While they are still far away from indicating all the reasons attributable to ineffectiveness of the system, they do shed light on some government failure problems and institutional barriers common in China's environmental regulation during the decades of 1980s and 1990s. Jin et al. summarized four major limitations of air pollution control policies during that early time period as follows: (1) the general absence of environmental rights and interests; (2) lack of regional co-ordination in air quality management; (3) lack of monitoring capacity; and (4) weak laws and regulations [11].

#### **2.3. New air pollution concerns and some major changes in control policies since 2000s**

#### *2.3.1. A brief overview of the air quality trend in China's major cities over the past two decades*

Since the 1990s, China has seen some improvement in ambient air quality in major cities, particularly the levels of SO2 . **Figure 1**, adopted from [11], summarizes the annual average levels of SO2 , PM10, and NO2 in China's seven megacities between 1996 and 2014. Although the levels of SO2 have been improved, the concentrations of two air pollutants of the greatest health impacts, that is, PM2.5 [20] and ground-level ozone [21], have been worsened in recent years.

#### *2.3.2. Some major changes in control policies since 2000s7*

This section briefly summarizes some major changes in China's air pollution control policies since the beginning of the twenty-first century.


experiment and demonstrate these policy tools through pilot projects. Examples include tradable pollutant permits that are currently being tested in pilot provinces and cities [11]. Florig et al. argued that some of China's emission standards do not consider source-tosource variations in the unit costs of emission abatement, and thus impose higher compliance costs on some polluters than others for the same amount of abatement [4]. Therefore, emission trading program seems to be promising in terms of reducing abatement costs. Experiences in the USA illustrate that the emissions trading program, which created a nationwide market for emissions reductions, has resulted in greater reductions in SO2 emissions at much lower cost than would have been required under the technology-based approach of the past [23]. However, due to China's distinct political and institutional system, and immature development of market economy, as well as a strong tradition of

(c) annual concentrations of seven China megacities in 1996–2014 (adopted

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**Figure 1.** Trends of SO2

from [11]).

(a); PM10 (b), and NO2

**4.** Market-based instruments started to be utilized in air pollution control. Market-based environmental policies are generally considered by economists to have the advantages over traditional command-and-control approaches in terms of cost-effectiveness and dynamic incentives for technology innovation and diffusion [22]. In early 2000s, China learned market-based tools for air quality regulation from western developed countries, and began to

<sup>7</sup> This section was heavily informed by [11].

A Review of Air Pollution Control Policy Development and Effectiveness in China http://dx.doi.org/10.5772/intechopen.74928 13

of SO2

have been improved, the concentrations of two air pollutants of the greatest health

impacts, that is, PM2.5 [20] and ground-level ozone [21], have been worsened in recent years.

This section briefly summarizes some major changes in China's air pollution control policies

**1.** Air pollution regulation executed more stringent emission standards for coal-fired boilers and power plants, and motor vehicles, and the NAAQSs (**Table A1** in the Appendix). The emission and air quality standards in China were initially established early between 1980s and 1990s, and since then has been significantly revised several times and tightened over time, particularly after the "PM2.5 crisis" that happened between 2012 and 2013 [11]. These standards are generally in line with international ones, and some of them (for instance, emission standards for power plants) are even more stringent than those used by western developed countries such as the USA [11]. Example of specific policy measures include use of low-sulfur and low-ash coal or more advanced pollution control equipment, installation of central heating to replace individual coal boilers, banning the use of coal stoves for cooking in urban areas, shutdown or relocation of coal-fired power plants in urban areas, restricting vehicle purchase and use, enhancing public transportation system, and

**2.** Mass-based emission control took the place of concentration-based control. Concentrationbased emissions standards have the disadvantage that emission standards can be met by diluting the waste gas stream with air, rather than by reducing the mass of pollutant discharged [4]. During 2006–2012, China implemented the "total emission control on SO2

sumption per unit of GDP from the 2005 levels were set as the national targets [11]. These targets were decomposed among provinces and local governments were required to fulfill

**3.** Stronger political will to prevent pollution, instead of generating pollution and then treating it. Based upon previous experiences and research, the central government has realized that the costs to the entire society could be much higher to use the so-called end-of-pipe strategy than to prevent emissions. The 2014 government work report stated that "China shall punch hard to strengthen the prevention and control of pollution, and resolutely

**4.** Market-based instruments started to be utilized in air pollution control. Market-based environmental policies are generally considered by economists to have the advantages over traditional command-and-control approaches in terms of cost-effectiveness and dynamic incentives for technology innovation and diffusion [22]. In early 2000s, China learned market-based tools for air quality regulation from western developed countries, and began to

reduction goal was achieved [11].

"

and a 20% reduction in energy con-

*2.3.2. Some major changes in control policies since 2000s7*

since the beginning of the twenty-first century.

12 Energy Management for Sustainable Development

regulating dust from construction sites.

the "assigned" target. The 10% SO2

declare war against pollution" [11].

This section was heavily informed by [11].

7

and an "energy saving" policy: A 10% reduction in SO2

**Figure 1.** Trends of SO2 (a); PM10 (b), and NO2 (c) annual concentrations of seven China megacities in 1996–2014 (adopted from [11]).

experiment and demonstrate these policy tools through pilot projects. Examples include tradable pollutant permits that are currently being tested in pilot provinces and cities [11]. Florig et al. argued that some of China's emission standards do not consider source-tosource variations in the unit costs of emission abatement, and thus impose higher compliance costs on some polluters than others for the same amount of abatement [4]. Therefore, emission trading program seems to be promising in terms of reducing abatement costs. Experiences in the USA illustrate that the emissions trading program, which created a nationwide market for emissions reductions, has resulted in greater reductions in SO2 emissions at much lower cost than would have been required under the technology-based approach of the past [23]. However, due to China's distinct political and institutional system, and immature development of market economy, as well as a strong tradition of command-and-control environmental regulation, the success of emissions trading system requires new administrative departments to be set up and the actual effect is still rather uncertain [11]. Beside the trading program, a carbon tax policy is under consideration by the government.

expected that China's move away from coal to cleaner energy sources will happen quickly in the near future. In December 2017, China released the nation's five-year plan (2017–2021) to convert northern Chinese cities to clean heating during the winter [26]. The plan sets the goal of converting half of northern China to clean heating (mainly natural gas and electricity heating) and reducing coal burning by 74 million tons by 2019 [26]. By the end of the five-year period in 2021, the goal is to achieve 70% cleaning heating and reduce coal burning by 150 million tons [26]. Overall, as part of China's national strategies to control the impacts of energy system on air quality, a national campaign to replace traditional, dirty coal with cleaner energy sources is under way, but it is likely to encounter many challenges. The government needs to develop

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strategies to ensure energy supply without boosting prices and hurting the economy.

China, in particular in the past two decades, learned a lot of policy tools from western industrialized countries such as the USA, which are considered to be more advanced in policy designs and implementations, and which in general has a much better air quality thus implying more successful in curbing air pollution. However, as mentioned before, policies work well in developed countries may fail in a developing country such as China, due to the differences of political and institutional systems, situations of economic development as well as many other social and cultural factors. Compared to the USA, China has a much more concentrated population, resulting in a much greater demand for energy consumption to survive its residents, which perhaps makes the air quality regulation issue even more

Regarding the historical path, China responded to air pollution almost a decade behind the USA. For instance, as mentioned in the previous section, China's first formal air pollution control project was initiated after a conference on stack dust removal held in 1972, whereas the very first air pollution statutes in the USA, designed to control smoke and soot from furnaces and locomotives, were passed by the cities of Chicago and Cincinnati in 1881 [23]. This is not surprising due to China's slowness in industrialization (started in 1950s but only began to develop rapidly after the 1979's economic reform) compared to the USA's early industrial revolution. One significant difference between China and the USA with regard to the features of the evolution of environmental governance particularly the air and water pollution issues perhaps is, that they followed an opposite path on the centralization and decentralization of pollution control. In the USA, the states, cities, and countries' governments first reacted to pollution problems by enacting their own ordinances targeting pollution control. Examples include the first air pollution statutes by Chicago

**3. Comparing air pollution control policies in China and in the** 

**3.1. Centralization and decentralization of air pollution regulation**

11The information about the US draws heavily on [23].

**USA11**

complicated.

**5.** Increasing public participation and civil society's role in combating air pollution. Chinese citizens, particularly urban residence demand better air quality as the income increase and living standard improvement [11]. Real-time air quality monitoring data have become more available to the general public, particularly in the most polluted megacities. Some data on emission sources and penalties on polluters have also been disclosed to the public [11].

Despite of the major reforms of regulations, air quality improvements remain insignificant in most cases. Jin et al. discussed some reasons for policy ineffectiveness: emission data reported by local government were unreliable; failure of inter-regional cooperation in abatement efforts (regional transboundary pollution issue); "campaign style" regulations that temporarily occur during some major international events such as the 2008 Olympics in Beijing—the effects of those temporary regulations diminished after the event; lastly, some argued that the current total control measures should be completely revoked [11].

#### *2.3.3. Changes in energy system in response to air pollution*

Coal is the primary energy source in China due to it abundance and has been the largest contributor to air pollution in China's history. Over the past three decades, coal has been accounted for approximately two-thirds of China's primary energy consumption [24]. In contrast, in the US coal accounts for less than 20% of the nation's energy production<sup>8</sup> . Despite the decrease in the percentage share of coal in China's total energy consumption since the 1950s, the total consumption of coal has been rising dramatically due to the soaring demands [25]. For instance, the total consumption was 1.5 billion tons in 2000 and rose to 3.8 billion tons in 2011<sup>9</sup> . Natural gas consumption generates much less pollution than coal and thus it is often regarded as a cleaner energy [24]. Natural gas currently accounts for about 6% of China's primary energy supply, which is considerably lower than the global average of 24% [24]. In response to the severe ambient air pollution problem, the Chinese government has listed the switch from coal to gas as a key part of China's sustainable energy system transformation strategy [24]. The switch from coal to natural gas in power plants, particularly over winter as part of the efforts to cut concentrations of PM2.5 that causes smog, was first implemented in the capital city Beijing, and quickly adopted by other provinces [11]. However, many provinces suspected or canceled the "coal to gas" initiative soon mainly due to natural gas shortages and soaring heating cost in China [11]. For instance, in early December 2017, the Beijing city government ordered an immediate restart to coal-fueled generators to ease the shortage of natural gas in northern China, which had caused numerous freezing homes and schools10. Despite the challenges facing China, it is

<sup>8</sup> Data in 2016. Sources: U.S. Energy Information Administration, https://www.eia.gov/energyexplained/?page=us\_ energy\_home. Accessed January 23, 2018.

<sup>9</sup> Data source: U.S. Energy Information Administration, https://www.eia.gov/todayinenergy/detail.php?id=9751. Accessed January 23, 2018.

<sup>10</sup>Source: China Daily Online, http://en.people.cn/n3/2017/1211/c90000-9302785.html. Accessed January 23, 2018.

expected that China's move away from coal to cleaner energy sources will happen quickly in the near future. In December 2017, China released the nation's five-year plan (2017–2021) to convert northern Chinese cities to clean heating during the winter [26]. The plan sets the goal of converting half of northern China to clean heating (mainly natural gas and electricity heating) and reducing coal burning by 74 million tons by 2019 [26]. By the end of the five-year period in 2021, the goal is to achieve 70% cleaning heating and reduce coal burning by 150 million tons [26]. Overall, as part of China's national strategies to control the impacts of energy system on air quality, a national campaign to replace traditional, dirty coal with cleaner energy sources is under way, but it is likely to encounter many challenges. The government needs to develop strategies to ensure energy supply without boosting prices and hurting the economy.

## **3. Comparing air pollution control policies in China and in the USA11**

command-and-control environmental regulation, the success of emissions trading system requires new administrative departments to be set up and the actual effect is still rather uncertain [11]. Beside the trading program, a carbon tax policy is under consideration by

**5.** Increasing public participation and civil society's role in combating air pollution. Chinese citizens, particularly urban residence demand better air quality as the income increase and living standard improvement [11]. Real-time air quality monitoring data have become more available to the general public, particularly in the most polluted megacities. Some data on emission sources and penalties on polluters have also been disclosed to the public [11]. Despite of the major reforms of regulations, air quality improvements remain insignificant in most cases. Jin et al. discussed some reasons for policy ineffectiveness: emission data reported by local government were unreliable; failure of inter-regional cooperation in abatement efforts (regional transboundary pollution issue); "campaign style" regulations that temporarily occur during some major international events such as the 2008 Olympics in Beijing—the effects of those temporary regulations diminished after the event; lastly, some argued that the current

Coal is the primary energy source in China due to it abundance and has been the largest contributor to air pollution in China's history. Over the past three decades, coal has been accounted for approximately two-thirds of China's primary energy consumption [24]. In contrast, in the

the percentage share of coal in China's total energy consumption since the 1950s, the total consumption of coal has been rising dramatically due to the soaring demands [25]. For instance, the

consumption generates much less pollution than coal and thus it is often regarded as a cleaner energy [24]. Natural gas currently accounts for about 6% of China's primary energy supply, which is considerably lower than the global average of 24% [24]. In response to the severe ambient air pollution problem, the Chinese government has listed the switch from coal to gas as a key part of China's sustainable energy system transformation strategy [24]. The switch from coal to natural gas in power plants, particularly over winter as part of the efforts to cut concentrations of PM2.5 that causes smog, was first implemented in the capital city Beijing, and quickly adopted by other provinces [11]. However, many provinces suspected or canceled the "coal to gas" initiative soon mainly due to natural gas shortages and soaring heating cost in China [11]. For instance, in early December 2017, the Beijing city government ordered an immediate restart to coal-fueled generators to ease the shortage of natural gas in northern China, which had caused numerous freezing homes and schools10. Despite the challenges facing China, it is

Data in 2016. Sources: U.S. Energy Information Administration, https://www.eia.gov/energyexplained/?page=us\_

Data source: U.S. Energy Information Administration, https://www.eia.gov/todayinenergy/detail.php?id=9751.

10Source: China Daily Online, http://en.people.cn/n3/2017/1211/c90000-9302785.html. Accessed January 23, 2018.

. Despite the decrease in

. Natural gas

total control measures should be completely revoked [11].

US coal accounts for less than 20% of the nation's energy production<sup>8</sup>

total consumption was 1.5 billion tons in 2000 and rose to 3.8 billion tons in 2011<sup>9</sup>

*2.3.3. Changes in energy system in response to air pollution*

the government.

14 Energy Management for Sustainable Development

8

9

energy\_home. Accessed January 23, 2018.

Accessed January 23, 2018.

China, in particular in the past two decades, learned a lot of policy tools from western industrialized countries such as the USA, which are considered to be more advanced in policy designs and implementations, and which in general has a much better air quality thus implying more successful in curbing air pollution. However, as mentioned before, policies work well in developed countries may fail in a developing country such as China, due to the differences of political and institutional systems, situations of economic development as well as many other social and cultural factors. Compared to the USA, China has a much more concentrated population, resulting in a much greater demand for energy consumption to survive its residents, which perhaps makes the air quality regulation issue even more complicated.

#### **3.1. Centralization and decentralization of air pollution regulation**

Regarding the historical path, China responded to air pollution almost a decade behind the USA. For instance, as mentioned in the previous section, China's first formal air pollution control project was initiated after a conference on stack dust removal held in 1972, whereas the very first air pollution statutes in the USA, designed to control smoke and soot from furnaces and locomotives, were passed by the cities of Chicago and Cincinnati in 1881 [23]. This is not surprising due to China's slowness in industrialization (started in 1950s but only began to develop rapidly after the 1979's economic reform) compared to the USA's early industrial revolution. One significant difference between China and the USA with regard to the features of the evolution of environmental governance particularly the air and water pollution issues perhaps is, that they followed an opposite path on the centralization and decentralization of pollution control. In the USA, the states, cities, and countries' governments first reacted to pollution problems by enacting their own ordinances targeting pollution control. Examples include the first air pollution statutes by Chicago

<sup>11</sup>The information about the US draws heavily on [23].

and Cincinnati governments and increasingly air pollution laws by other states, cities, and counties. By 1980, there were already 50 state, 81 municipal, and 142 county air pollution control jurisdictions with statutes in the USA [23]. The US federal government entered the control efforts for the first time with the passage of the Air Pollution Control Act in 1955 [23]. Until the 1970, the federal role in environmental protection had been greatly enlarged, indicated by federal minimum standards and regulations as primary policy tools [15]. In China, on the contrary, the central government first responded to the issue by promulgating national level environmental laws, regulations, and programs, and then instructing the local government (province, municipal, county, etc.) to be responsible for the implementation of them, or to outline their own measures in response to the regulations. This difference between China and the USA is heavily rooted in the USA's federalism political system and China's traditional centralized governmental system. While the decentralized regulations may involve problems such as conflicts, debates, negotiations between federal and local government, China's major problem in the past seemed to be the compliance by local regulators to the national statutes. In very recent years, following China's political reform, which is characterized by the trend of governance system decentralization in particular regarding economic development issue, the environmental governance has also indicated some evidence of decentralized regulations. This trend is expected to gradually become more apparent, but the change may be slow.

control law is silent about cross-boundary air pollution issue, this problem might still rise in practice, because despite of China's strong tradition of "centralized regulation," the actual

A Review of Air Pollution Control Policy Development and Effectiveness in China

http://dx.doi.org/10.5772/intechopen.74928

Both China and the USA have national level ambient air quality standards. **Tables A1** and **A2** in the Appendix list both countries' NAAQSs. **Tables A1** and **A2** illustrate that both countries focus on the six common (or criteria) air pollutants in regulation. While the USA has been using primary standards for human health and secondary standards for the environ-

annual standard for PM2.5), historically China had been using three categories of standards that applied to different types of land. The latest one (GB3095–2012, see **Table A1**) revoked the Grade III standard. Although the complexity of China's NAAQSs allowed more flexibility in regulation based on the demand for air quality or variations of costs to control at different types of regions, it may involve more debates, dispute, negotiations, or even conflicts in determining which standard to apply, resulting in more difficulties in regulations. Comparably, the US 1977 amendments also established three classes of "already clean" areas: in Class I areas (which include national parks, forests, and wilderness areas, and other areas that states elect to include), very little additional deterioration in air quality is permitted, even if current concentrations are far below the NAAQSs; somewhat more pollution is permitted in Class II areas (which make up most of the remaining clean air regions); in Class III areas, air quality is permitted to deteriorate up to but not beyond the level of the NAAQSs [23]. Generally, China's Grade II standards (which applies to regular living areas) is comparable to the USA's primary standards. Taking PM2.5 as an example, China recently started the nation's PM2.5 stan-

politically feasible for China to adopt the standards as stringent as those used in the USA, due to the possible high costs resulting from emission reduction. Nevertheless, a ubiquitous problem in China is nonattainment. For example, a review of PM2.5 concentration in major Chinese cities during 2005–2016 reported that nearly 90% of the pollution levels exceeded the

Due to the severity of China's air pollution issue, the nation's economic growth may have been offset by the economic loss due to adverse health impacts and environment damages attributable to air pollution. As stated in Rock "the human health costs of environmental degradation and growing spontaneous public pressure have made it increasingly difficult for all levels of Chinese government to ignore the environmental degradation attending high-speed urban-industrial growth" [24]. The government is currently confronted with an onerous challenge to better design and implement policies to clean the ambient

and the

17

, which is less strin-

. At present, it may not be economically and

day-to-day implementations of laws are authorized to local governments.

dard in 2016. China's Grade II PM2.5 annual average standard is 35 μg/m<sup>3</sup>

gent than the USA primary standard of 15 μg/m<sup>3</sup>

[20].

annual limit of 35 μg/m<sup>3</sup>

environment.

**4. Conclusion remarks**

**3.3. National ambient air quality standards and emission performance standards**

ment (primary and secondary standards are the same in most cases except for SO2

#### **3.2. Some features of the basic air pollution control law**

Regarding the national air pollution control law (For China, Air Pollution Prevention and Control Law and for the USA, the Clean Air Act first passed in 1963 and followed by the 1970 amendments), there are a couple of similarities. For example, both laws provides support from central government for air pollution research, and for the development of local pollution control agencies; both laws' initial focus was industrial and residential sources of air pollution, and later the regulation of emissions from mobile sources was added together with vehicle emissions standards, when the problem became more apparent (an exception in the USA was the state of California, who took on the air quality problems associated with motor vehicle exhausts when it first passed its air pollution ordinances [23]). Technological innovations and the adoption of "best available technology" are strongly encouraged in under both laws. Both countries' laws execute so-called new source performance standards, that is, newly constructed (or substantially modified) plants are subject to stricter emissions standards than currently existing factories. In the USA, "federal controls on new sources, but state controls on existing sources" [23]. On the other hand, Florig et al. argued that China's grandfather rules (similar to the USA policy toward existing factories) may have the unintended consequence of extending the time that older facilities are kept in service, to avoid having to incur the additional operating costs or pollution levy fees associated with a new replacement facility with more stringent emissions requirements, and the more stringent emissions requirements for use of more advanced pollution control technologies provides a disincentive to adopt these measures [4]. One distinct feature of the US law that is not seen in China's law is that the US Clean Air Act addressed the federal government's assistance to the states when cross-boundary air pollution problems arose [23]. Although China's national control law is silent about cross-boundary air pollution issue, this problem might still rise in practice, because despite of China's strong tradition of "centralized regulation," the actual day-to-day implementations of laws are authorized to local governments.

#### **3.3. National ambient air quality standards and emission performance standards**

Both China and the USA have national level ambient air quality standards. **Tables A1** and **A2** in the Appendix list both countries' NAAQSs. **Tables A1** and **A2** illustrate that both countries focus on the six common (or criteria) air pollutants in regulation. While the USA has been using primary standards for human health and secondary standards for the environment (primary and secondary standards are the same in most cases except for SO2 and the annual standard for PM2.5), historically China had been using three categories of standards that applied to different types of land. The latest one (GB3095–2012, see **Table A1**) revoked the Grade III standard. Although the complexity of China's NAAQSs allowed more flexibility in regulation based on the demand for air quality or variations of costs to control at different types of regions, it may involve more debates, dispute, negotiations, or even conflicts in determining which standard to apply, resulting in more difficulties in regulations. Comparably, the US 1977 amendments also established three classes of "already clean" areas: in Class I areas (which include national parks, forests, and wilderness areas, and other areas that states elect to include), very little additional deterioration in air quality is permitted, even if current concentrations are far below the NAAQSs; somewhat more pollution is permitted in Class II areas (which make up most of the remaining clean air regions); in Class III areas, air quality is permitted to deteriorate up to but not beyond the level of the NAAQSs [23]. Generally, China's Grade II standards (which applies to regular living areas) is comparable to the USA's primary standards. Taking PM2.5 as an example, China recently started the nation's PM2.5 standard in 2016. China's Grade II PM2.5 annual average standard is 35 μg/m<sup>3</sup> , which is less stringent than the USA primary standard of 15 μg/m<sup>3</sup> . At present, it may not be economically and politically feasible for China to adopt the standards as stringent as those used in the USA, due to the possible high costs resulting from emission reduction. Nevertheless, a ubiquitous problem in China is nonattainment. For example, a review of PM2.5 concentration in major Chinese cities during 2005–2016 reported that nearly 90% of the pollution levels exceeded the annual limit of 35 μg/m<sup>3</sup> [20].

#### **4. Conclusion remarks**

and Cincinnati governments and increasingly air pollution laws by other states, cities, and counties. By 1980, there were already 50 state, 81 municipal, and 142 county air pollution control jurisdictions with statutes in the USA [23]. The US federal government entered the control efforts for the first time with the passage of the Air Pollution Control Act in 1955 [23]. Until the 1970, the federal role in environmental protection had been greatly enlarged, indicated by federal minimum standards and regulations as primary policy tools [15]. In China, on the contrary, the central government first responded to the issue by promulgating national level environmental laws, regulations, and programs, and then instructing the local government (province, municipal, county, etc.) to be responsible for the implementation of them, or to outline their own measures in response to the regulations. This difference between China and the USA is heavily rooted in the USA's federalism political system and China's traditional centralized governmental system. While the decentralized regulations may involve problems such as conflicts, debates, negotiations between federal and local government, China's major problem in the past seemed to be the compliance by local regulators to the national statutes. In very recent years, following China's political reform, which is characterized by the trend of governance system decentralization in particular regarding economic development issue, the environmental governance has also indicated some evidence of decentralized regulations. This trend is expected to gradually become

Regarding the national air pollution control law (For China, Air Pollution Prevention and Control Law and for the USA, the Clean Air Act first passed in 1963 and followed by the 1970 amendments), there are a couple of similarities. For example, both laws provides support from central government for air pollution research, and for the development of local pollution control agencies; both laws' initial focus was industrial and residential sources of air pollution, and later the regulation of emissions from mobile sources was added together with vehicle emissions standards, when the problem became more apparent (an exception in the USA was the state of California, who took on the air quality problems associated with motor vehicle exhausts when it first passed its air pollution ordinances [23]). Technological innovations and the adoption of "best available technology" are strongly encouraged in under both laws. Both countries' laws execute so-called new source performance standards, that is, newly constructed (or substantially modified) plants are subject to stricter emissions standards than currently existing factories. In the USA, "federal controls on new sources, but state controls on existing sources" [23]. On the other hand, Florig et al. argued that China's grandfather rules (similar to the USA policy toward existing factories) may have the unintended consequence of extending the time that older facilities are kept in service, to avoid having to incur the additional operating costs or pollution levy fees associated with a new replacement facility with more stringent emissions requirements, and the more stringent emissions requirements for use of more advanced pollution control technologies provides a disincentive to adopt these measures [4]. One distinct feature of the US law that is not seen in China's law is that the US Clean Air Act addressed the federal government's assistance to the states when cross-boundary air pollution problems arose [23]. Although China's national

more apparent, but the change may be slow.

16 Energy Management for Sustainable Development

**3.2. Some features of the basic air pollution control law**

Due to the severity of China's air pollution issue, the nation's economic growth may have been offset by the economic loss due to adverse health impacts and environment damages attributable to air pollution. As stated in Rock "the human health costs of environmental degradation and growing spontaneous public pressure have made it increasingly difficult for all levels of Chinese government to ignore the environmental degradation attending high-speed urban-industrial growth" [24]. The government is currently confronted with an onerous challenge to better design and implement policies to clean the ambient environment.

This chapter reviews the development of air quality policies since 1950s in China's political and economic development context, focusing on the period since China's reform of the economic system in 1979. Over time, environmental policy designs and implementations were rooted in China's broad institutional development, agenda settings and policy processes, and today's policies have been strongly shaped or influenced by past policies. It was found that both China's central government and the local EPBs had a strong will to clean the environment and had been seriously addressing this issue since the initiation of China's national environmental regulation in late 1970s. However, they had experienced great difficulty in enforcing emissions standards not only on individual pollutants, but also on the industrial bureaus that control them, and the economic commissions and mayors that depend on them to deliver income and employment [27]. As the daunting result, there had been a huge gap between the set goals and the actual outcomes. With regard to environmental governance, Rock argued "the focus in China is how a nascent environmental agency learned how to take advantage of the rules of economic governance to influence powerful economic actors" [24]. As for policy design and implementation, China has to significantly strengthen government's interests at all levels in environmental objectives.

development of future economic and energy policies. Revolutionary change is very likely and air quality management based on health risk is primary direction [11]. In this regard, the government is incumbent on developing a wiser course that protects the environment in order to

We would like to sincerely thank Dr Richard Andrews, Professor Emeritus of Environmental Policy in the Department of Public Policy, University of North Carolina at Chapel Hill, United States, for his inspiration of this research, and his insightful comments on an early version of

**<sup>4</sup> PM10 PM2.5**

II 150 300 100 100 160 150 — III 250 500 150 200 200 250 —

A Review of Air Pollution Control Policy Development and Effectiveness in China

http://dx.doi.org/10.5772/intechopen.74928

19

II 60 200 40 100 160 100 — III 100 300 80 200 200 150 —

II 60 200 80 100 200 100 — III 100 300 80 200 200 150 —

II 60 200 40 100 200 70 35

(NAAQSs) table, China (adopted from Jin et al. [11]).

**5**

improve the welfare of its citizens and ensure a sustainable development.

**Year No. of standard Grade2 SO2 TSP NO2 CO3 O3**

1982 GB3095–82 I 50 150 50 100 120 50 —

1996 GB3095–1996 I 20 80 40 100 120 40 —

2000 Amended GB3095–1996 I 20 80 40 100 160 40 —

2016 GB3095–2012 I 20 80 40 100 160 40 15

, 24-h average.

Grade I standard applies to places like national park or forests, where stricter requirements for air quality are needed; Grade II applies to usual urban industrial, residential and commercial areas and rural areas; Grade III applies to heavy

**Acknowledgements**

this chapter.

1

2

3 CO: mg/m<sup>3</sup>

4 O3 : μg/m<sup>3</sup>

5

PM2.5: μg/m<sup>3</sup>

or special industrial areas.

, 1 h average.

, annual average.

**Table A1.** National Ambient Air Quality Standards<sup>1</sup>

, 1 h average.

**A. Appendix**

See **Tables A1** and **A2.**

Unless specified, all standards are in the unit of μg/m<sup>3</sup>

Since China still needs to substantially balance the costs of pollution reduction, market-based policies seem to be very promising as China's market economy becomes more mature. While market-based policy instruments such as the cap-and-trade system have been arguably successful in the USA in term of emission reduction and cost-effectiveness, their actual effects in China are still uncertain. China should definitely learn the experience established in developed nations, but may not simply follow their practice. The uniqueness and distinctiveness of China's political and institutional characteristics requires it to be very prudent when referring to policies developed in other countries.

A common problem in China's past environmental policy designs is, arguably, policy and regulations may be not politically or economically feasible or enforceable, and the goals are sometimes unrealistic. China's future environmental policy designs should systematically and thoroughly evaluate the feasibility through comprehensive policy analyses, and address the effectiveness issue, and dynamically adjust policies based on evaluation of past effects and problems.

By and large, China, in the stage of rapid industrialization and urbanization, is now facing an arduous challenge to tackle its air pollution problem: For instance, requiring the use of "clean" energy would result in a fundamental change in China's energy consumption structure, whereas China's energy shortage problem, particularly shortages of cleaner fuels such as natural gas, is still a substantial issue; emission control of transportation system may dauntingly conflict with the rapidly increasing demand for automobiles; and changes in urban infrastructure for better emission control would impose an enormous costs on cities. However, huge health and environmental damage attributable to air pollution has made regulation targeting pollution abatement imperative. Therefore, China has to seriously balance its interests on economic growth with the risk of inexorable increase in the damage to human health and environment in the development of future economic and energy policies. Revolutionary change is very likely and air quality management based on health risk is primary direction [11]. In this regard, the government is incumbent on developing a wiser course that protects the environment in order to improve the welfare of its citizens and ensure a sustainable development.

#### **Acknowledgements**

This chapter reviews the development of air quality policies since 1950s in China's political and economic development context, focusing on the period since China's reform of the economic system in 1979. Over time, environmental policy designs and implementations were rooted in China's broad institutional development, agenda settings and policy processes, and today's policies have been strongly shaped or influenced by past policies. It was found that both China's central government and the local EPBs had a strong will to clean the environment and had been seriously addressing this issue since the initiation of China's national environmental regulation in late 1970s. However, they had experienced great difficulty in enforcing emissions standards not only on individual pollutants, but also on the industrial bureaus that control them, and the economic commissions and mayors that depend on them to deliver income and employment [27]. As the daunting result, there had been a huge gap between the set goals and the actual outcomes. With regard to environmental governance, Rock argued "the focus in China is how a nascent environmental agency learned how to take advantage of the rules of economic governance to influence powerful economic actors" [24]. As for policy design and implementation, China has to significantly strengthen government's interests at all levels in environmental objectives.

Since China still needs to substantially balance the costs of pollution reduction, market-based policies seem to be very promising as China's market economy becomes more mature. While market-based policy instruments such as the cap-and-trade system have been arguably successful in the USA in term of emission reduction and cost-effectiveness, their actual effects in China are still uncertain. China should definitely learn the experience established in developed nations, but may not simply follow their practice. The uniqueness and distinctiveness of China's political and institutional characteristics requires it to be very prudent when referring

A common problem in China's past environmental policy designs is, arguably, policy and regulations may be not politically or economically feasible or enforceable, and the goals are sometimes unrealistic. China's future environmental policy designs should systematically and thoroughly evaluate the feasibility through comprehensive policy analyses, and address the effectiveness

By and large, China, in the stage of rapid industrialization and urbanization, is now facing an arduous challenge to tackle its air pollution problem: For instance, requiring the use of "clean" energy would result in a fundamental change in China's energy consumption structure, whereas China's energy shortage problem, particularly shortages of cleaner fuels such as natural gas, is still a substantial issue; emission control of transportation system may dauntingly conflict with the rapidly increasing demand for automobiles; and changes in urban infrastructure for better emission control would impose an enormous costs on cities. However, huge health and environmental damage attributable to air pollution has made regulation targeting pollution abatement imperative. Therefore, China has to seriously balance its interests on economic growth with the risk of inexorable increase in the damage to human health and environment in the

issue, and dynamically adjust policies based on evaluation of past effects and problems.

to policies developed in other countries.

18 Energy Management for Sustainable Development

We would like to sincerely thank Dr Richard Andrews, Professor Emeritus of Environmental Policy in the Department of Public Policy, University of North Carolina at Chapel Hill, United States, for his inspiration of this research, and his insightful comments on an early version of this chapter.

#### **A. Appendix**


#### See **Tables A1** and **A2.**

1 Unless specified, all standards are in the unit of μg/m<sup>3</sup> , 24-h average.

2 Grade I standard applies to places like national park or forests, where stricter requirements for air quality are needed; Grade II applies to usual urban industrial, residential and commercial areas and rural areas; Grade III applies to heavy or special industrial areas.

3 CO: mg/m<sup>3</sup> , 1 h average.

4 O3 : μg/m<sup>3</sup> , 1 h average.

5 PM2.5: μg/m<sup>3</sup> , annual average.

**Table A1.** National Ambient Air Quality Standards<sup>1</sup> (NAAQSs) table, China (adopted from Jin et al. [11]).


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[10] Ma X, Ortolano L. Environmental Regulation in China: Institutions, Enforcement and

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[13] Wang H, Wheeler D. Endogenous enforcement and effectiveness of China's pollution

[14] Sinkule BJ, Ortolano L. Implementing Environmental Policy in China. Westport, CT:

[15] Andrews RNL. Managing the Environment, Managing Ourselves: A History of American

[16] Jahiel A. The organization of environmental protection in China. The China Quarterly,

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Environmental Policy. New Haven: Yale University Press; 1999

Special Issue: China's Environment. 1998;**156**:757-787

2016;**13**(12):1219. DOI: 10.3390/ijerph13121219

Levy system. World Bank Working Paper; 2000

University Press; 1998. pp. 241-265

DC: World Bank; 1993

Praeger Publishers; 1995

Energy Policy. 2000;**28**:671-687

\* Source: the USEPA official website: https://www.epa.gov/criteria-air-pollutants/naaqs-table, [Accessed December 8, 2017]. *Note*: *Primary standards* set limits to protect public health, including the health of "sensitive" populations such as asthmatics, children, and the elderly. *Secondary standards* set limits to protect public welfare, including protection against decreased visibility, damage to animals, crops, vegetation, and buildings.

**Table A2.** National Ambient Air Quality Standards (NAAQSs) table, United States\* .

### **Author details**

Ying Li<sup>1</sup> \* and Ke Chen<sup>2</sup>

\*Address all correspondence to: liy005@etsu.edu

1 Department of Environmental Health, College of Public Health, East Tennessee State University, Johnson City, Tennessee, United States

2 Department of Political Science, International Affairs and Public Administration, East Tennessee State University, Johnson City, Tennessee, United States

#### **References**


**Author details**

Nitrogen dioxide (NO2

Sulfur dioxide (SO2

Ozone (O<sup>3</sup>

\*

\* and Ke Chen<sup>2</sup>

\*Address all correspondence to: liy005@etsu.edu

) 100 ppb

20 Energy Management for Sustainable Development

53 ppb

) 75 ppb 1 h

**Table A2.** National Ambient Air Quality Standards (NAAQSs) table, United States\*

decreased visibility, damage to animals, crops, vegetation, and buildings.

University, Johnson City, Tennessee, United States

Tennessee State University, Johnson City, Tennessee, United States

Environmental Health Perspectives. 2015;**123**(2):135

health in China's 74 cities. SpringerPlus. 2016;**5**(1):402

PM2.5. Environmental Science & Technology. 2015;**49**(13):8057-8066

challenges of exposure-based control. Chemosphere. 2002;**49**:1163-1174

1 Department of Environmental Health, College of Public Health, East Tennessee State

**Pollutant Primary standards Averaging times Secondary standards**

Lead (Pb) 0.15 μg/m<sup>3</sup> Rolling 3 month average Same as primary

Particulate matter (PM2.5) 12.0 μg/m<sup>3</sup> 1 year 15.0 μg/m<sup>3</sup>

Particulate matter (PM10) 150 μg/m<sup>3</sup> 24-h Same as primary

1 h 1 year

) 0.070 ppm 8 h Same as Primary

Source: the USEPA official website: https://www.epa.gov/criteria-air-pollutants/naaqs-table, [Accessed December 8, 2017]. *Note*: *Primary standards* set limits to protect public health, including the health of "sensitive" populations such as asthmatics, children, and the elderly. *Secondary standards* set limits to protect public welfare, including protection against

35 ppm 1 h None

35 μg/m<sup>3</sup> 24 h Same as primary

3 h 0.5 ppm

.

None

Same as Primary

Carbon monoxide (CO) 9 ppm 8 h None

2 Department of Political Science, International Affairs and Public Administration, East

[1] Van Donkelaar A, Martin RV, Brauer M, Boys BL. Use of satellite observations for long-term exposure assessment of global concentrations of fine particulate matter.

[2] Apte JS, Marshall JD, Cohen AJ, Brauer M. Addressing global mortality from ambient

[3] Li L, Lei Y, Pan D, Yu C, Si C. Economic evaluation of the air pollution effect on public

[4] Florig HK, Sun G, Song G. Evolution of particulate regulation in China—Prospects and

Ying Li<sup>1</sup>

**References**


[21] Wang WN, Cheng TH, Gu XF, Chen H, Guo H, Wang Y, et al. Assessing spatial and temporal patterns of observed ground-level ozone in China. Scientific Reports. 2017;**7**(1):3651 **Chapter 2**

Provisional chapter

**Historical Drivers of Energy Infrastructure Change in**

DOI: 10.5772/intechopen.74002

This chapter, building on a previously published paper, presents the key historical drivers of energy infrastructure change in Nigeria. The study revealed five main drivers that impacted on the Nigerian energy transitions which are: (a) Policy and institutional interventions on energy; (b) Technological interventions and energy technology pathways; (c) Social (societal) practices and public values for energy; (d) Available energy resource options; and (e) Economic considerations. Based on these drivers, four important influences that impacted on energy systems choices and the kind of energy infrastructure Nigeria ended up with were also discussed. These influences are: (a) Politics and energy governance structures; (b) Technological changes; (c) Energy resources (and the quantity of available reserves); (d) The geographies of energy. It concludes by highlighting some of the implications of these influences on the future of

Keywords: energy transitions, energy future, energy sector, energy governance,

Energy transitions entail a shift, or movement, in decreasing the use of fossil fuel in our energy supply systems [1]. Across the world, fossil fuels, such as coal, crude oil and natural gas, accounts for a large percentage of our energy supplies. There has been growing interest in energy transitions because beyond the fact that most fossil fuel resources are reserve based, which means that are limited, the major driver of energy transitions is the threat posed by burning the available large quantities of fossil fuels and their corresponding impact on the environment [2]. To generate this transition, the role of policy cannot be overemphasized. The

> © 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and eproduction in any medium, provided the original work is properly cited.

© 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,

distribution, and reproduction in any medium, provided the original work is properly cited.

Historical Drivers of Energy Infrastructure Change in

**Nigeria (1800–2015)**

Nigeria (1800–2015)

Additional information is available at the end of the chapter

Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.74002

Norbert Edomah

Norbert Edomah

Abstract

energy in Nigeria.

electricity regulation

1. Introduction


#### **Historical Drivers of Energy Infrastructure Change in Nigeria (1800–2015)** Historical Drivers of Energy Infrastructure Change in Nigeria (1800–2015)

DOI: 10.5772/intechopen.74002

#### Norbert Edomah Norbert Edomah

[21] Wang WN, Cheng TH, Gu XF, Chen H, Guo H, Wang Y, et al. Assessing spatial and temporal patterns of observed ground-level ozone in China. Scientific Reports. 2017;**7**(1):3651

[22] Stavins R. Market-based environmental policies. In: Portney PR, Stavins RN, editors. Public Policies for Environmental Protection. Washington, DC: Resources for the Future

[23] Portney PR. Air pollution policy. In: Portney PR, Stavins RN, editors. Public Policies for Environmental Protection. Washington, DC: Resources for the Future Press; 2000.

[24] Zhang D, Paltsev S. The future of natural gas in China: Effects of pricing reform and

[25] Li R, Leung GC. Coal consumption and economic growth in China. Energy Policy.

[26] China National Development and Reform Commission (NDRC), China National Energy Administration, etc. Northern China Winter Clean Heating Plan (2017-2021). Available at: http://www.gov.cn/xinwen/2017-12/20/5248855/files/7ed7d7cda8984ae39a4e9620a46

[27] Rock M. Integrating environmental and economic policy making in China and Taiwan.

climate policy. Climate Change Economics. 2016;**7**(04):1650012

Press; 2000. pp. 31-76

22 Energy Management for Sustainable Development

pp. 7-123

2012;**40**:438-443

60c7f.pdf. [Accessed: January 23, 2018]

American Behavioral Scientist. 2002;**45**(9):1435-1455

Additional information is available at the end of the chapter Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.74002

#### Abstract

This chapter, building on a previously published paper, presents the key historical drivers of energy infrastructure change in Nigeria. The study revealed five main drivers that impacted on the Nigerian energy transitions which are: (a) Policy and institutional interventions on energy; (b) Technological interventions and energy technology pathways; (c) Social (societal) practices and public values for energy; (d) Available energy resource options; and (e) Economic considerations. Based on these drivers, four important influences that impacted on energy systems choices and the kind of energy infrastructure Nigeria ended up with were also discussed. These influences are: (a) Politics and energy governance structures; (b) Technological changes; (c) Energy resources (and the quantity of available reserves); (d) The geographies of energy. It concludes by highlighting some of the implications of these influences on the future of energy in Nigeria.

Keywords: energy transitions, energy future, energy sector, energy governance, electricity regulation

#### 1. Introduction

Energy transitions entail a shift, or movement, in decreasing the use of fossil fuel in our energy supply systems [1]. Across the world, fossil fuels, such as coal, crude oil and natural gas, accounts for a large percentage of our energy supplies. There has been growing interest in energy transitions because beyond the fact that most fossil fuel resources are reserve based, which means that are limited, the major driver of energy transitions is the threat posed by burning the available large quantities of fossil fuels and their corresponding impact on the environment [2]. To generate this transition, the role of policy cannot be overemphasized. The

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and eproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

clean energy transition is somewhat unique because it has to be driven by policy. Markets cannot provide the platform to reduce greenhouse gas emissions, since markets naturally tend towards more consumption of fossil fuels. As such, it is important to understand the role of policy, policy levers and policy decisions, in effecting energy transitions [3].

2. Materials and methods

three volumes was also useful sources of data.

2.1. Why choose these documents?

the subject under study.

Data from documentary archives and other published sources that links to the Nigerian historical energy infrastructure provisions were used for analysis in order to have a better understanding of the Nigerian energy (infrastructure) history. Diaries, letters, memos and policy documents

Historical Drivers of Energy Infrastructure Change in Nigeria (1800–2015)

http://dx.doi.org/10.5772/intechopen.74002

25

The detailed account of the history of the Nigerian Railways by Francis Jackel (1997) covered in

It is noteworthy that in many existing transition studies, one can easily notice the extensive use of quantitative (and qualitative) data from published literatures, and particularly archives of some agencies, used in collecting data and making meaningful analyses which serves as

1. The Nigerian Railway Corporation is the oldest institution in Nigeria which has existed since colonial times (in late 1800s). They hold some of Nigeria's oldest archives.

2. The archives of the Nigerian Railway Corporation (NRC) contain records of associated events that led to decisions on the provision of several rail infrastructure. Some of these documents contained the reasoning (and contexts) behind those decisions and the future benefits the government aimed at achieving. An example is the case of providing rail infrastructure linking Kano to Lagos to aid the easy movement of agricultural produce from the hinterland (in the north of Nigeria) to the ports (in the south of Nigeria) for export

Documentary and archival records were analysed and used to prepare a historical narrative on the various factors that influenced the evolution of energy infrastructure provisions in Nigeria [8]. The following steps were followed in analysing archival documents/records [10, 11].

1. Meeting the documents: this process involves checking to ascertain if there are any special markings or figures on the documents which could tell us something in connection with

2. Observing the parts: this entails finding out who wrote the documents and for what purpose. When was the record produced? Are those dates useful in analysing times of energy

3. Trying to make sense of the documents: this stage entails trying to obtain the main ideas of the documents. Why was the document written? Are there useful aspects that support my

pointers, suggesting various constitutive elements of the energy history under study.

These set of documents were selected for analyses for the following reasons:

[9]. Some, trade and policy contexts on infrastructure decisions taken.

2.2. How were the documentary/archival records analysed?

transition and how society develops over time?

research and can be used as evidence?

from the archives of the Nigerian Railway Corporation were used and analyses.

In developing economies, energy supply shortages, poor or non-existent infrastructure and subsidized end-user prices are some key direct challenges which tend to slow-down the implementation of structural changes in energy systems. In industrialized countries, the main challenges are: rapid speed of change and imbalance in the development path of energy systems [4]. Understanding how policy decisions are taken, how current policies are interpreted and how energy infrastructure is shaped, is dependent on the understanding of the actors and stakeholders, their socio-psychological biases, the internal workings of the institutions within which they act, and their organization's wider interests. On this basis, the broader drivers, influences and consequences of the policy decision process and energy governance need to be considered.

According to the International Energy Agency (IEA), to facilitate energy transition, there is need for concerted, early and consistent policy action [5]. The IEA argues that well designed policies that aid decarbonisation through cutting down on household energy expenses related to fossil fuel and improving air quality can aid the transition to a low carbon economy. The International Renewable Energy Agency (IRENA) further argues that transiting to a low carbon economy will require a drastic deployment of renewable energy solutions and energy efficiency measures [5–7].

This paper serves as an extension of a previously published work titled "Energy transitions in Nigeria: The evolution of energy infrastructure provisions (1800–2015)". In that work, the Nigerian energy transition was presented with emphasis on the key practices, interventions and events that led to changes in energy infrastructure supply and use within each energy era [8]. The Nigerian energy transitions, covering a period of 1800–2015 were divided into five major energy eras which are:


The previous work emphasized the connection between event, practices and changes in energy supply infrastructure without much attention to the drivers and how they influenced the transition in energy use. This paper looks at the key drivers within each energy era and how they influenced the Nigerian energy transitions.

In this chapter, some methodological considerations used in this research are presented in Section 2. In Section 3, the drivers and influences of Nigeria's energy supply infrastructure changes are presented. Section 4 discusses these influences further and what they mean for the future of energy in Nigeria. The concluding thoughts are presented in Section 5.

### 2. Materials and methods

clean energy transition is somewhat unique because it has to be driven by policy. Markets cannot provide the platform to reduce greenhouse gas emissions, since markets naturally tend towards more consumption of fossil fuels. As such, it is important to understand the role of

In developing economies, energy supply shortages, poor or non-existent infrastructure and subsidized end-user prices are some key direct challenges which tend to slow-down the implementation of structural changes in energy systems. In industrialized countries, the main challenges are: rapid speed of change and imbalance in the development path of energy systems [4]. Understanding how policy decisions are taken, how current policies are interpreted and how energy infrastructure is shaped, is dependent on the understanding of the actors and stakeholders, their socio-psychological biases, the internal workings of the institutions within which they act, and their organization's wider interests. On this basis, the broader drivers, influences and consequences of the policy decision process and energy governance need to be considered. According to the International Energy Agency (IEA), to facilitate energy transition, there is need for concerted, early and consistent policy action [5]. The IEA argues that well designed policies that aid decarbonisation through cutting down on household energy expenses related to fossil fuel and improving air quality can aid the transition to a low carbon economy. The International Renewable Energy Agency (IRENA) further argues that transiting to a low carbon economy will require a drastic deployment of renewable energy solutions and energy

This paper serves as an extension of a previously published work titled "Energy transitions in Nigeria: The evolution of energy infrastructure provisions (1800–2015)". In that work, the Nigerian energy transition was presented with emphasis on the key practices, interventions and events that led to changes in energy infrastructure supply and use within each energy era [8]. The Nigerian energy transitions, covering a period of 1800–2015 were divided into five major

The previous work emphasized the connection between event, practices and changes in energy supply infrastructure without much attention to the drivers and how they influenced the transition in energy use. This paper looks at the key drivers within each energy era and how

In this chapter, some methodological considerations used in this research are presented in Section 2. In Section 3, the drivers and influences of Nigeria's energy supply infrastructure changes are presented. Section 4 discusses these influences further and what they mean for the future of energy in Nigeria. The concluding thoughts are presented in Section 5.

policy, policy levers and policy decisions, in effecting energy transitions [3].

efficiency measures [5–7].

24 Energy Management for Sustainable Development

energy eras which are:

• Pre-industrial (agricultural) era—up to mid-1800s.

• Industrial (steam engines) era—early to mid-1900s.

they influenced the Nigerian energy transitions.

• Early industrial (advanced metallurgy) era—late 1800s.

• Information (microprocessor) era—early 2000s onwards.

• Late industrial (dynamo, internal combustion engines) era—mid to late 1900s.

Data from documentary archives and other published sources that links to the Nigerian historical energy infrastructure provisions were used for analysis in order to have a better understanding of the Nigerian energy (infrastructure) history. Diaries, letters, memos and policy documents from the archives of the Nigerian Railway Corporation were used and analyses.

The detailed account of the history of the Nigerian Railways by Francis Jackel (1997) covered in three volumes was also useful sources of data.

It is noteworthy that in many existing transition studies, one can easily notice the extensive use of quantitative (and qualitative) data from published literatures, and particularly archives of some agencies, used in collecting data and making meaningful analyses which serves as pointers, suggesting various constitutive elements of the energy history under study.

#### 2.1. Why choose these documents?

These set of documents were selected for analyses for the following reasons:


#### 2.2. How were the documentary/archival records analysed?

Documentary and archival records were analysed and used to prepare a historical narrative on the various factors that influenced the evolution of energy infrastructure provisions in Nigeria [8]. The following steps were followed in analysing archival documents/records [10, 11].


4. Use the documents as historical evidence: this stage helps in asking questions that can help provide answers to validate the use of those documents as evidence. For example, where can I find more information about a particular event referenced in the document? Where can I find more information about the person who wrote the document? Are there empirical evidences that are aftermaths of the things observed in the documents?

This research revealed that changes in Nigeria's energy supply infrastructure have been driven

Historical Drivers of Energy Infrastructure Change in Nigeria (1800–2015)

http://dx.doi.org/10.5772/intechopen.74002

27

Policy and institutional interventions have been one of the greatest contributors to changes and transformation in energy supply infrastructure systems. These policy interventions have come about as a result of the increasing need to address issues, such as energy access, energy security, decarbonizing future energy, and combating the effects of anthropogenic climate

Technological interventions and different technological pathways have also contributed to changes in energy infrastructure systems in Nigeria over time. This started with the use of steam engines (up to early 1900s), coal fired power plants (up to mid-1900s) and thermal power plants (since the 1980s). The development of renewables (hydroelectric power) started in the mid-1900s. This development is deemed to continue due to national and international pressures to cause a shift to the use of renewables (including the use of solar photovoltaic cells,

Public values for energy was driven more by the perceived (and actual) merit that provision of energy infrastructure conferred. Indeed, there were changes in societal and social practices brought about by the provision of electricity supply infrastructure. Some of these practices, such as commuting, trading and entertainment became more energy intensive. The provision of electricity infrastructure did not only help guaranty the continuation of these practices, but

The availability of natural resources, particularly primary energy resources such as coal, crude oil and natural gas aided the increased use and consumption of those resources. Resource availability served as a primary driver of energy consumption. Rising demand for energy served as a secondary reason. Indeed, the effect of rising demand and resource availability led to transitions in energy use as shown in Figure 1. This same transition was also supported by, and influenced the creation of, several decision-making institutions within each era, as well

Economic considerations impacted on historical energy infrastructure investments. Future energy infrastructure supply will require further leadership and sustained investments by public and private entities in providing energy infrastructure that addresses the changing (current and future) needs of people in society. Governments, through public institutions, will have to provide economic incentives to increase energy infrastructure provision through

and influenced within the following contexts:

4. Available energy resource options

5. Economic considerations

change and its consequences.

also aided its sophistication.

1. Policy and institutional interventions on energy

wind power and nuclear energies where applicable).

as the policy direction of the government (see Figure 1).

promulgation of policies to aid private investment going into the future.

2. Technological interventions and energy technology pathways

3. Social (societal) practices and public values for energy

### 3. Energy supply infrastructure changes in Nigeria: drivers and influences

A panoramic view of the energy eras and the different features that characterized the Nigerian energy transitions within each energy era is presented in Figure 1. The study and analysis of these eras were centred on four important characteristic features that served as points of departure for understanding the influences that have impacted on changes in energy infrastructure supply and use in Nigeria. These central features are:



Figure 1. A panoramic view of the energy eras and the key features of the Nigerian energy transitions (1800–2015).

This research revealed that changes in Nigeria's energy supply infrastructure have been driven and influenced within the following contexts:


4. Use the documents as historical evidence: this stage helps in asking questions that can help provide answers to validate the use of those documents as evidence. For example, where can I find more information about a particular event referenced in the document? Where can I find more information about the person who wrote the document? Are there empir-

A panoramic view of the energy eras and the different features that characterized the Nigerian energy transitions within each energy era is presented in Figure 1. The study and analysis of these eras were centred on four important characteristic features that served as points of departure for understanding the influences that have impacted on changes in energy infra-

2. Technological interventions that served as enablers in production and consumption of energy.

4. Institutions responsible for energy (and electricity) infrastructure governance and provision

Figure 1. A panoramic view of the energy eras and the key features of the Nigerian energy transitions (1800–2015).

3. Commercial and end-use practices that shaped and influenced demand for energy

ical evidences that are aftermaths of the things observed in the documents?

3. Energy supply infrastructure changes in Nigeria: drivers and

structure supply and use in Nigeria. These central features are:

1. Energy (re)sources used in satisfying demand for energy.

influences

26 Energy Management for Sustainable Development

Policy and institutional interventions have been one of the greatest contributors to changes and transformation in energy supply infrastructure systems. These policy interventions have come about as a result of the increasing need to address issues, such as energy access, energy security, decarbonizing future energy, and combating the effects of anthropogenic climate change and its consequences.

Technological interventions and different technological pathways have also contributed to changes in energy infrastructure systems in Nigeria over time. This started with the use of steam engines (up to early 1900s), coal fired power plants (up to mid-1900s) and thermal power plants (since the 1980s). The development of renewables (hydroelectric power) started in the mid-1900s. This development is deemed to continue due to national and international pressures to cause a shift to the use of renewables (including the use of solar photovoltaic cells, wind power and nuclear energies where applicable).

Public values for energy was driven more by the perceived (and actual) merit that provision of energy infrastructure conferred. Indeed, there were changes in societal and social practices brought about by the provision of electricity supply infrastructure. Some of these practices, such as commuting, trading and entertainment became more energy intensive. The provision of electricity infrastructure did not only help guaranty the continuation of these practices, but also aided its sophistication.

The availability of natural resources, particularly primary energy resources such as coal, crude oil and natural gas aided the increased use and consumption of those resources. Resource availability served as a primary driver of energy consumption. Rising demand for energy served as a secondary reason. Indeed, the effect of rising demand and resource availability led to transitions in energy use as shown in Figure 1. This same transition was also supported by, and influenced the creation of, several decision-making institutions within each era, as well as the policy direction of the government (see Figure 1).

Economic considerations impacted on historical energy infrastructure investments. Future energy infrastructure supply will require further leadership and sustained investments by public and private entities in providing energy infrastructure that addresses the changing (current and future) needs of people in society. Governments, through public institutions, will have to provide economic incentives to increase energy infrastructure provision through promulgation of policies to aid private investment going into the future.

The following sub-sections now delve into the details of the various influences/drivers of energy systems change within each energy era.

increased productivity helped in sustaining families, maintaining communities and suppor-

Historical Drivers of Energy Infrastructure Change in Nigeria (1800–2015)

http://dx.doi.org/10.5772/intechopen.74002

29

During this era, the available energy resource was from food calories. Decisions on energy resource use depended on families and local communities. The availability of food calories meant that most practices performed were based on manual labour and draft animal labour. This was very demanding as there was need other energy resource options that could help

During this era, energy from food calories was perceived as a common (societal) good. The availability of this energy source provided the basis for several practices to be implemented in different sort of ways, such as commuting and trade. Trade was a very important practice that led to more demand for energy. Trade activities improved and many Nigerian locals saw the need to increase their export produce that would be sold to their trade partners. It is the perceived value (a means of livelihood) and the trade practices that led to demand for new forms of energy to help increase production output of food produce, arts and crafts for export.

This era saw the extensive use of metallurgical interventions in energy use. The key drivers of

The institutional decision-making platforms that were vital in shaping this stage of the Nige-

The British colonial government was the key decision maker during this era. Since Nigeria was divided into regions, there were regional governors for the northern, western and eastern regions. Decision making on new infrastructural development was effected through some institutions established during this era. The two pivotal institutions set up during this era were:

ting traditional festivals, such as: the harvest festivals.

reduce the use of manual labour in achieving different practices.

3.2. Early industrial (metallurgical) era—mid to late 1800s

energy infrastructure supply during this era were:

• Traditional institutions (traditional rulers)

1. The Public Works Department (PWD)

2. The Nigerian Railway Corporation (NRC)

1. Institutional interventions 2. Technological interventions

3. Economic considerations

3.2.1. Institutional interventions

rian energy transition were:

• Colonial institutions

3.1.3. Energy resource options

3.1.4. Social practices and public values

#### 3.1. Pre-industrial (agricultural) era—up to mid-1800s

This era, which was characterized more by agricultural practices and interventions, saw the extensive use of traditional biomass (mostly by-products of agriculture, such as wood) as the major source of energy. The following were key drivers of energy infrastructure supply in this era:


#### 3.1.1. Institutional interventions

There were two pre-dominant decision-making institutions during this era:


Decisions at the level of families were made based on their available resources and needs. Byproducts from agriculture such as oils were used for addressing lighting needs using oil lamps [12]. A source of food for most families was through peasant farming. Decisions on domestic energy needs impacted on increased energy demand in the forms of food calories and other agricultural by-products required for various domestic needs such as wood for cooking. Indeed, the aggregate value of the combined energy needs of several families resulted in thinking about new innovative ways of addressing and satisfying the rising energy demand.

Rulers of traditional communities played a pivotal role with respect to trade activities. For most communities, traditional rulers, together with the traditional council (also known as 'council of chiefs' in some cultures in Nigeria) encouraged people within their communities to embark on activities that can potentially increase trade activities with other communities and foreign envoys [12]. There are several evidence of this in Badagry area of Lagos and the great Benin kingdom. Trade, which encouraged the exchange of practices and ideas led people in several communities to adopt practices that were energy intensive [13]. Increased trade activities during this era led to the cultivation of more crops for domestic consumption and export [14].

Families and rulers of traditional communities (together with traditional councils—the equivalent of congress at community levels) were the main institutional drivers of energy infrastructure changes and use during this era.

#### 3.1.2. Economic considerations

During this era, increased agricultural output was considered synonymous to economic prosperity. Growth in agricultural productivity meant increased potential for more trade leading to increased income. Since agriculture was the mainstay of the economy during this era, increased productivity helped in sustaining families, maintaining communities and supporting traditional festivals, such as: the harvest festivals.

#### 3.1.3. Energy resource options

The following sub-sections now delve into the details of the various influences/drivers of

This era, which was characterized more by agricultural practices and interventions, saw the extensive use of traditional biomass (mostly by-products of agriculture, such as wood) as the major source of energy. The following were key drivers of energy infrastructure supply in this era:

Decisions at the level of families were made based on their available resources and needs. Byproducts from agriculture such as oils were used for addressing lighting needs using oil lamps [12]. A source of food for most families was through peasant farming. Decisions on domestic energy needs impacted on increased energy demand in the forms of food calories and other agricultural by-products required for various domestic needs such as wood for cooking. Indeed, the aggregate value of the combined energy needs of several families resulted in thinking about new innovative ways of addressing and satisfying the rising energy demand. Rulers of traditional communities played a pivotal role with respect to trade activities. For most communities, traditional rulers, together with the traditional council (also known as 'council of chiefs' in some cultures in Nigeria) encouraged people within their communities to embark on activities that can potentially increase trade activities with other communities and foreign envoys [12]. There are several evidence of this in Badagry area of Lagos and the great Benin kingdom. Trade, which encouraged the exchange of practices and ideas led people in several communities to adopt practices that were energy intensive [13]. Increased trade activities during

this era led to the cultivation of more crops for domestic consumption and export [14].

Families and rulers of traditional communities (together with traditional councils—the equivalent of congress at community levels) were the main institutional drivers of energy infrastruc-

During this era, increased agricultural output was considered synonymous to economic prosperity. Growth in agricultural productivity meant increased potential for more trade leading to increased income. Since agriculture was the mainstay of the economy during this era,

There were two pre-dominant decision-making institutions during this era:

energy systems change within each energy era.

28 Energy Management for Sustainable Development

1. Institutional interventions 2. Economic considerations 3. Energy resource options

3.1.1. Institutional interventions

2. Traditional institutions (rulers)

ture changes and use during this era.

3.1.2. Economic considerations

1. Families

4. Social practices and public values

3.1. Pre-industrial (agricultural) era—up to mid-1800s

During this era, the available energy resource was from food calories. Decisions on energy resource use depended on families and local communities. The availability of food calories meant that most practices performed were based on manual labour and draft animal labour. This was very demanding as there was need other energy resource options that could help reduce the use of manual labour in achieving different practices.

#### 3.1.4. Social practices and public values

During this era, energy from food calories was perceived as a common (societal) good. The availability of this energy source provided the basis for several practices to be implemented in different sort of ways, such as commuting and trade. Trade was a very important practice that led to more demand for energy. Trade activities improved and many Nigerian locals saw the need to increase their export produce that would be sold to their trade partners. It is the perceived value (a means of livelihood) and the trade practices that led to demand for new forms of energy to help increase production output of food produce, arts and crafts for export.

#### 3.2. Early industrial (metallurgical) era—mid to late 1800s

This era saw the extensive use of metallurgical interventions in energy use. The key drivers of energy infrastructure supply during this era were:


#### 3.2.1. Institutional interventions

The institutional decision-making platforms that were vital in shaping this stage of the Nigerian energy transition were:


The British colonial government was the key decision maker during this era. Since Nigeria was divided into regions, there were regional governors for the northern, western and eastern regions. Decision making on new infrastructural development was effected through some institutions established during this era. The two pivotal institutions set up during this era were:


The PWD was established to plan and develop several infrastructural facilities in Nigeria (roads, electricity, ports and harbours, etc.). The PWD intervened in the establishment of the first electrical power plant in Lagos, which served lighting purposes. This intervention led to increased demand for electricity since this provision led to increased perceived public value for electricity.

3.3. Industrial (steam engine) era—early to mid-1900s

were:

this era.

1. Technological interventions 2. Changes in social practices

4. Economic considerations 5. Energy resource options

3.3.1. Technological interventions

hydroelectric power plants.

3.3.2. Changes in social practices

3.3.3. Policy and institutional interventions

during this era:

3. Policy and institutional interventions

During the industrial era, there were five vital drivers of energy infrastructure supply. These

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During this era, the use of metallurgical and electrical technology interventions in infrastructural provisions became further widespread. New railway infrastructure opened up the hinterlands and connected more towns which aided mass transportation of people and goods. The use of steam engines for transport and manufacturing applications were also evident in

New electricity supply infrastructure was provided to cater for increased electricity demand. The existing steam plants were expanded in response to increased demand. This era also saw the introduction of new technology pathways for electrical energy generation. The discovery of coal in 1909 paved the way for the introduction of coal fired electrical power plants in (Lagos and Enugu) Nigeria. There were also plans during this era which paved the way for future

The introduction of various technological interventions during this era led to changes in social practices of Nigerians which became dependent on more dense energy sources. Indeed, some of these practices became more energy intensive. The provision of more road and rail infrastructure led to a change in commuting patterns from walking to the use of mass transportation models, such as railway lines. This period also saw a gradual change from mass transportation (in the beginning of the era) to individualized transportation (towards the end of the era). The change in commuting patterns led to increased demand for more transport infrastructure which also had

This era saw the introduction of several policies, implemented within institutional frameworks, which aided the eventual provision of targeted infrastructure (including energy). This era was dominated by colonial institutions, established to achieve specific infrastructural and policy targets [16]. Two institutions were pivotal in the provision of electricity infrastructure

some effects on increased demand for energy infrastructure supply.

The NRC intervened in the planning, surveys and provision of rail transport infrastructure. The NRC was established to plan, implement and maintain rail infrastructure in order to open up the hinterlands of the country and aid the easy transportation of agricultural produce to coastal cities and ports for export. This led to the provision of the first rail line in Nigeria in 1896, linking Lagos and Ibadan, two cities in South-West Nigeria.

Traditional rulers still remained relevant in the scheme of things at the community level [15]. However, colonial rule and institutions were having greater impact in changing the infrastructure and governance landscape [14]. In order to gain acceptance at local community levels, the colonial institutions worked closely with community leaders to ensure decisions made were accepted and implemented at community level.

#### 3.2.2. Technological interventions

Changes in energy systems during this era were also influenced by technological interventions. Two forms of technological interventions were evident during this era:


The extensive use of metallurgy during this era aided the planning and development of several infrastructure. Metallurgical interventions aided the production of farm tools to aid agricultural practices and increase crop production. The provision of the first railway line in Nigeria was also aided by the extensive deployment of metallurgical interventions during this era. These interventions aided the provision of mass transportation infrastructure (such as the railway line).

Electrical technology interventions aided the provision of the first electrical power plant in Nigeria which was used mainly for lighting applications. However, this initial provision paved the way for future electrical technology interventions to cater for future electrical energy needs due to increased demand for other applications, such as, electricity needs for the workshops of the Nigeria Railway Corporation.

#### 3.2.3. Economic consideration

During this era, economic considerations were centred on increased trade volume, growth in income and productivity. Policies of the colonial administration at the time were centred on providing infrastructure aimed at economic development that supports trade. These were part of the considerations for the planning and eventual provision of the first railway line and electricity infrastructure in Nigeria.

#### 3.3. Industrial (steam engine) era—early to mid-1900s

During the industrial era, there were five vital drivers of energy infrastructure supply. These were:

1. Technological interventions

The PWD was established to plan and develop several infrastructural facilities in Nigeria (roads, electricity, ports and harbours, etc.). The PWD intervened in the establishment of the first electrical power plant in Lagos, which served lighting purposes. This intervention led to increased demand for electricity since this provision led to increased perceived public value

The NRC intervened in the planning, surveys and provision of rail transport infrastructure. The NRC was established to plan, implement and maintain rail infrastructure in order to open up the hinterlands of the country and aid the easy transportation of agricultural produce to coastal cities and ports for export. This led to the provision of the first rail line in Nigeria in

Traditional rulers still remained relevant in the scheme of things at the community level [15]. However, colonial rule and institutions were having greater impact in changing the infrastructure and governance landscape [14]. In order to gain acceptance at local community levels, the colonial institutions worked closely with community leaders to ensure decisions made were

Changes in energy systems during this era were also influenced by technological interventions.

The extensive use of metallurgy during this era aided the planning and development of several infrastructure. Metallurgical interventions aided the production of farm tools to aid agricultural practices and increase crop production. The provision of the first railway line in Nigeria was also aided by the extensive deployment of metallurgical interventions during this era. These interventions aided the provision of mass transportation infrastructure (such as the

Electrical technology interventions aided the provision of the first electrical power plant in Nigeria which was used mainly for lighting applications. However, this initial provision paved the way for future electrical technology interventions to cater for future electrical energy needs due to increased demand for other applications, such as, electricity needs for the workshops of

During this era, economic considerations were centred on increased trade volume, growth in income and productivity. Policies of the colonial administration at the time were centred on providing infrastructure aimed at economic development that supports trade. These were part of the considerations for the planning and eventual provision of the first railway line and

1896, linking Lagos and Ibadan, two cities in South-West Nigeria.

Two forms of technological interventions were evident during this era:

accepted and implemented at community level.

3.2.2. Technological interventions

30 Energy Management for Sustainable Development

1. Metallurgical technology

the Nigeria Railway Corporation.

electricity infrastructure in Nigeria.

3.2.3. Economic consideration

2. Electrical technology

railway line).

for electricity.


#### 3.3.1. Technological interventions

During this era, the use of metallurgical and electrical technology interventions in infrastructural provisions became further widespread. New railway infrastructure opened up the hinterlands and connected more towns which aided mass transportation of people and goods. The use of steam engines for transport and manufacturing applications were also evident in this era.

New electricity supply infrastructure was provided to cater for increased electricity demand. The existing steam plants were expanded in response to increased demand. This era also saw the introduction of new technology pathways for electrical energy generation. The discovery of coal in 1909 paved the way for the introduction of coal fired electrical power plants in (Lagos and Enugu) Nigeria. There were also plans during this era which paved the way for future hydroelectric power plants.

#### 3.3.2. Changes in social practices

The introduction of various technological interventions during this era led to changes in social practices of Nigerians which became dependent on more dense energy sources. Indeed, some of these practices became more energy intensive. The provision of more road and rail infrastructure led to a change in commuting patterns from walking to the use of mass transportation models, such as railway lines. This period also saw a gradual change from mass transportation (in the beginning of the era) to individualized transportation (towards the end of the era). The change in commuting patterns led to increased demand for more transport infrastructure which also had some effects on increased demand for energy infrastructure supply.

#### 3.3.3. Policy and institutional interventions

This era saw the introduction of several policies, implemented within institutional frameworks, which aided the eventual provision of targeted infrastructure (including energy). This era was dominated by colonial institutions, established to achieve specific infrastructural and policy targets [16]. Two institutions were pivotal in the provision of electricity infrastructure during this era:


Established in 1922, the Nigerian Electricity Supply Company (NESCO) was tasked with the responsibility of developing electrical energy supply (generation) infrastructure. NESCO was involved in generation and bulk trading of electricity to different towns and cities such as Bukuru (1936) and Vom (1944), covering a total of 600 square-miles (including the mines). The peak load rose to 12 MW with an annual load factor of 60%. As of 1922, the Enugu building of NESCO was already in place, just off the railway workshops. Engines, dynamos, boilers and a riveted steel chimney were in position at an audited cost of over £103k, which is worth around £4.6m in current estimates. This power plant supplied electrical power to the mines from 1924.

The Nigerian Government Electricity Undertaking (NGEU) was established in 1946 to plan and implement the provision of electricity infrastructure by at least 200%. The aim was to ensure the provision of electricity to support industrialization. The implementation of this policy led to industrialization in the 1950s in Nigeria. Many manufacturing plants based their future growth projections on the electrical infrastructure expansion plans.

#### 3.3.4. Economic considerations

Trade activities continued to grow during this era. This was evident by the complex movements of goods over time as highlighted in Table 1. The growth in trade was supported by increased agricultural productivity and the presence of small cottage industries. Table 1 shows the goods tonnage and passenger journeys (1913–1976). Between 1925 and 1930, the movement of coal led to increased trade and commercial activities.

The introduction of the new energy policy for the provision of more energy supply infrastructure was based purely on economic considerations, to support industrialization. The Nigerian Government Electricity Undertaking (NGEU) had the responsibility of planning and implementing this policy. Indeed, economic considerations from individuals and government and impacted on more demand for energy which then influenced more electricity infrastructure supply.

3.4. Late industrial (dynamo/internal combustion engine) era—mid to late 1900s

the following:

1. Energy resource options 2. Technological interventions

5. Economic considerations

3. Policy/institutional interventions 4. Societal practices and public values

This era saw some drastic changes in energy infrastructure supply. These were influenced by

Table 1. Goods tonnage and passenger journeys in Nigeria (Source: Archives of the Nigerian Railway Cooperation).

Year Paying tonnage ('000) Non-paying tonnage ('000) Total tonnage ('000) Passenger journeys ('000)

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#### 3.3.5. Energy resource options

During this era, there was a deliberate attempt by the Nigerian government (still under colonial rule) to conduct surveys aimed at exploring and searching for possible mineral reserves. This led to the discovery of coal in 1909.

The discovery of coal changed the electricity and transportation landscape. There was a shift to the use of coal fired power plants for electricity generation due to the availability of coal. The use of coal in cottage industries also increased. The transportation landscape was also affected by the discovery of coal as more locomotives depended on coal as the fuel source.


Table 1. Goods tonnage and passenger journeys in Nigeria (Source: Archives of the Nigerian Railway Cooperation).

#### 3.4. Late industrial (dynamo/internal combustion engine) era—mid to late 1900s

This era saw some drastic changes in energy infrastructure supply. These were influenced by the following:

1. Energy resource options

1. Nigerian Electricity Supply Company (NESCO)

32 Energy Management for Sustainable Development

the mines from 1924.

3.3.4. Economic considerations

3.3.5. Energy resource options

to the discovery of coal in 1909.

ture supply.

2. Nigerian Government Electricity Undertaking (NGEU)

Established in 1922, the Nigerian Electricity Supply Company (NESCO) was tasked with the responsibility of developing electrical energy supply (generation) infrastructure. NESCO was involved in generation and bulk trading of electricity to different towns and cities such as Bukuru (1936) and Vom (1944), covering a total of 600 square-miles (including the mines). The peak load rose to 12 MW with an annual load factor of 60%. As of 1922, the Enugu building of NESCO was already in place, just off the railway workshops. Engines, dynamos, boilers and a riveted steel chimney were in position at an audited cost of over £103k, which is worth around £4.6m in current estimates. This power plant supplied electrical power to

The Nigerian Government Electricity Undertaking (NGEU) was established in 1946 to plan and implement the provision of electricity infrastructure by at least 200%. The aim was to ensure the provision of electricity to support industrialization. The implementation of this policy led to industrialization in the 1950s in Nigeria. Many manufacturing plants based their

Trade activities continued to grow during this era. This was evident by the complex movements of goods over time as highlighted in Table 1. The growth in trade was supported by increased agricultural productivity and the presence of small cottage industries. Table 1 shows the goods tonnage and passenger journeys (1913–1976). Between 1925 and 1930, the movement

The introduction of the new energy policy for the provision of more energy supply infrastructure was based purely on economic considerations, to support industrialization. The Nigerian Government Electricity Undertaking (NGEU) had the responsibility of planning and implementing this policy. Indeed, economic considerations from individuals and government and impacted on more demand for energy which then influenced more electricity infrastruc-

During this era, there was a deliberate attempt by the Nigerian government (still under colonial rule) to conduct surveys aimed at exploring and searching for possible mineral reserves. This led

The discovery of coal changed the electricity and transportation landscape. There was a shift to the use of coal fired power plants for electricity generation due to the availability of coal. The use of coal in cottage industries also increased. The transportation landscape was also affected

by the discovery of coal as more locomotives depended on coal as the fuel source.

future growth projections on the electrical infrastructure expansion plans.

of coal led to increased trade and commercial activities.


#### 3.4.1. Energy resource options

The discovery of crude oil in commercial quantities in Nigeria in 1958 changed the entire energy landscape during this era. After the Nigerian independence and the civil war, there was a shift in the use of fuel from the use of coal to a greater dependence on natural gas and crude oil (and its by-products) for electricity generation and other industrial uses. Indeed, there were more options to choose from between coal, natural gas and crude oil. This era also saw the development of dams for hydroelectric power generation.

The Niger Dams Authority (NDA) was established in 1962 to develop Nigeria's hydropower potential. This paved the way for the development of hydroelectric power infrastructure in Nigeria with the building of several dams for irrigation, water supply and electricity generation.

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The National Electric Power Authority (NEPA) was established in 1st April 1972 which is a product of the merger of the Niger Dams Authority (NDA) and the Electricity Corporation of Nigeria (ECN). The merger actually took effect from 6th January 1973. The NEPA was a public company, owned and managed by the Nigerian government. All through this era, NEPA had responsibility for the provision, operation and maintenance of electricity infrastructure in Nigeria.

The Nigerian National Petroleum Corporation (NNPC) established on 1st April 1977 to participate and regulate Nigeria's petroleum industry. The role of the NNPC in regulating activities of players in the oil and gas sector had direct impact on electricity infrastructure provision since fuels required to power the electrical power plants depended on the dynamics of the

In 1979, an act of government (which was later amended in 1988 and 1989) established the Energy Commission of Nigeria (ECN). The ECN was charged with the responsibility of coordinating and strategically planning the national energy policies. The ECN have focused on developing actions plans that aids in addressing the Nigeria's energy challenges through establishing and implementing policies. Indeed, since its establishment, the ECN still has a

In this era, there were swift changes with regards to social practices which impacted on energy demand and consumption. The public value for energy services was on the rise and energy was highly perceived as a public good. Education played a vital role in the changes in social practices and perceived public values for energy. There was an increase in the number of educational institutions at primary, secondary and tertiary levels. Educational institutions also

With regards to commuting, there was a change in commuting patterns from mass transportation to individualized transportation. More people had their private vehicles for personal and business purposes. Aside the reasons of comfort and convenience, a major driver of change from mass transportation to individualized transportation were increased concern for security and safety. There were also changes in lifestyles and leisure that impacted on the energy consumption

Rapid population growth, migration and urbanization also impacted on changes in practices. Some towns and cities ended up becoming more cosmopolitan (such as Lagos). Multiplicity of diverse practices within cities, aided by migration and population growth, impacted on changes and provision of infrastructure for commuting (transport), leisure (recreation), learning (education), trading (commerce), etc. These practices impacted on energy use and

and use that leads to increased need demand for energy supply infrastructure.

downstream oil and gas sector.

3.4.4. Societal practices and public values

needed energy for teaching and research.

increased demand for energy infrastructure supply.

huge gap to fill.

#### 3.4.2. Technological interventions

During this era, dynamos and internal combustion engines played a key role as the major technology driver of changes in energy infrastructure supply. The extensive use of internal combustion engines for vehicles and road transportation impacted on fuel sources. This also led to extensive investment in road infrastructure and a gradual decline in the use of rail transport infrastructure.

During this era, new technological pathways were adopted for electrical energy generation. Extensive development of hydroelectric and thermal power plants was evidenced in this era. This era also saw a swift decline in the use of coal for electrical power generation and the retiring of several coal-fired power plants.

#### 3.4.3. Policy/institutional interventions

This era saw the extensive use of policy and institutional frameworks as intervention tools in addressing issues of energy infrastructure supply. The rising energy demand after the Second World War led to increased electrical infrastructure supply constraints. As such, the government intervened by carving out a new unit off the Public Works Department called the Nigerian Government Electricity Undertaking (NGEU). The NGEU was established in 1946 as an entity that will metamorphose into a future corporation with the aim of preparing and implementing a plan that can aid the provision of more electricity infrastructure to aid industrialization. Indeed, the NGEU prepared a 10-year plan covering the period 1946–1956 with the aim of increasing electricity infrastructure provision by at least 200% to support industrialization.

Another important institution is the Electricity Corporation of Nigeria (ECN). The ECN was established on 6th July 1950 and was charged with the task of developing Nigeria's electricity potential in a manner as to provide cheap and affordable sources of energy in a consistent and sustainable way.

The beginning of this era saw the gradual handover of institutions under colonial control as the country prepared for independence (which took place on 1st October 1960) [17]. Series of military coups and counter coups experienced a few years after the independence led to instructional instability, highly militarized decision making structure, and less attention and adherence to laid down policy plans and processes [18, 19].

The Niger Dams Authority (NDA) was established in 1962 to develop Nigeria's hydropower potential. This paved the way for the development of hydroelectric power infrastructure in Nigeria with the building of several dams for irrigation, water supply and electricity generation.

The National Electric Power Authority (NEPA) was established in 1st April 1972 which is a product of the merger of the Niger Dams Authority (NDA) and the Electricity Corporation of Nigeria (ECN). The merger actually took effect from 6th January 1973. The NEPA was a public company, owned and managed by the Nigerian government. All through this era, NEPA had responsibility for the provision, operation and maintenance of electricity infrastructure in Nigeria.

The Nigerian National Petroleum Corporation (NNPC) established on 1st April 1977 to participate and regulate Nigeria's petroleum industry. The role of the NNPC in regulating activities of players in the oil and gas sector had direct impact on electricity infrastructure provision since fuels required to power the electrical power plants depended on the dynamics of the downstream oil and gas sector.

In 1979, an act of government (which was later amended in 1988 and 1989) established the Energy Commission of Nigeria (ECN). The ECN was charged with the responsibility of coordinating and strategically planning the national energy policies. The ECN have focused on developing actions plans that aids in addressing the Nigeria's energy challenges through establishing and implementing policies. Indeed, since its establishment, the ECN still has a huge gap to fill.

#### 3.4.4. Societal practices and public values

3.4.1. Energy resource options

34 Energy Management for Sustainable Development

3.4.2. Technological interventions

transport infrastructure.

industrialization.

sustainable way.

retiring of several coal-fired power plants.

3.4.3. Policy/institutional interventions

The discovery of crude oil in commercial quantities in Nigeria in 1958 changed the entire energy landscape during this era. After the Nigerian independence and the civil war, there was a shift in the use of fuel from the use of coal to a greater dependence on natural gas and crude oil (and its by-products) for electricity generation and other industrial uses. Indeed, there were more options to choose from between coal, natural gas and crude oil. This era also

During this era, dynamos and internal combustion engines played a key role as the major technology driver of changes in energy infrastructure supply. The extensive use of internal combustion engines for vehicles and road transportation impacted on fuel sources. This also led to extensive investment in road infrastructure and a gradual decline in the use of rail

During this era, new technological pathways were adopted for electrical energy generation. Extensive development of hydroelectric and thermal power plants was evidenced in this era. This era also saw a swift decline in the use of coal for electrical power generation and the

This era saw the extensive use of policy and institutional frameworks as intervention tools in addressing issues of energy infrastructure supply. The rising energy demand after the Second World War led to increased electrical infrastructure supply constraints. As such, the government intervened by carving out a new unit off the Public Works Department called the Nigerian Government Electricity Undertaking (NGEU). The NGEU was established in 1946 as an entity that will metamorphose into a future corporation with the aim of preparing and implementing a plan that can aid the provision of more electricity infrastructure to aid industrialization. Indeed, the NGEU prepared a 10-year plan covering the period 1946–1956 with the aim of increasing electricity infrastructure provision by at least 200% to support

Another important institution is the Electricity Corporation of Nigeria (ECN). The ECN was established on 6th July 1950 and was charged with the task of developing Nigeria's electricity potential in a manner as to provide cheap and affordable sources of energy in a consistent and

The beginning of this era saw the gradual handover of institutions under colonial control as the country prepared for independence (which took place on 1st October 1960) [17]. Series of military coups and counter coups experienced a few years after the independence led to instructional instability, highly militarized decision making structure, and less attention and

adherence to laid down policy plans and processes [18, 19].

saw the development of dams for hydroelectric power generation.

In this era, there were swift changes with regards to social practices which impacted on energy demand and consumption. The public value for energy services was on the rise and energy was highly perceived as a public good. Education played a vital role in the changes in social practices and perceived public values for energy. There was an increase in the number of educational institutions at primary, secondary and tertiary levels. Educational institutions also needed energy for teaching and research.

With regards to commuting, there was a change in commuting patterns from mass transportation to individualized transportation. More people had their private vehicles for personal and business purposes. Aside the reasons of comfort and convenience, a major driver of change from mass transportation to individualized transportation were increased concern for security and safety. There were also changes in lifestyles and leisure that impacted on the energy consumption and use that leads to increased need demand for energy supply infrastructure.

Rapid population growth, migration and urbanization also impacted on changes in practices. Some towns and cities ended up becoming more cosmopolitan (such as Lagos). Multiplicity of diverse practices within cities, aided by migration and population growth, impacted on changes and provision of infrastructure for commuting (transport), leisure (recreation), learning (education), trading (commerce), etc. These practices impacted on energy use and increased demand for energy infrastructure supply.

#### 3.4.5. Economic considerations

This period saw changes in trade and investment dynamics. The discovery of more natural resources paved the way for further trade activities and other economic considerations investments. Crude oil export started in the 1970s. Export of agricultural produce continued but at a reduced rate due to a shift in attention from agriculture to crude oil as the major income earner for the country. The produce that was now exported (crude oil) required a lot of energy for its exploration and production.

Owing to inefficiencies in the Nigerian electricity sector, the Nigerian government started a process of unbundling the National Electric Power Authority (NEPA) in order to reduce government bureaucratic process in electricity supply infrastructure provision, operation and maintenance. The PHCN was established on 5th May 2005 as a holding company, owning the various divisions responsible for generation, transmission and distribution of electrical energy. This paved the way for the future privatization of the PHCN, with transfer and controls of some national electrical power assets by private companies. The privatization process also brought about some changes in models of electricity financing, operation and maintenance.

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The NERC was established on 31st October 2007 as a regulatory body for the Nigerian power industry. The NERC has the responsibility for issuance of licenses and permits to market participants in the Nigerian electricity sector. They also ensure compliance to rules and regu-

This era saw lots of private investments in the provision of infrastructure to satisfy the increased demand for convenience and comfort. This was evidenced in the emergence of shopping malls, cinemas, nature reserves and parks. The emergence of these infrastructure posed more pressure on demand for energy. This era continued to experience increased migration and urbanization which posed some infrastructure challenges (including energy). Indeed, in this era, the public value for energy services had increased and people had more

In this era, the need for increased productivity led to the embrace of automation in the industrial and manufacturing sector. Economic consideration during this era was characterized by the need to address both internal (local) and external (export) demand for certain products. Indeed, this led to more manufacturing activities. Most industrial players had to invest in electrical generation plants to satisfy their electricity needs. Self-generation of electricity also impacted on cost of finished goods as some companies could not measure up to the

In Nigeria, a very important aspect of the governance of energy and electricity infrastructure provision is the individual interest of policy actors, the individualistic nature of which further emphasizes the need to incorporate economic and social psychological thinking. Some underlying questions they ask themselves before deciding on what type of energy infrastructure to

• How much does this infrastructure cost? Can our current budget accommodate it?

dependence on energy to fulfill and accomplish several social practices.

4. Important learnings from the Nigerian energy transitions

latory guidelines in the Nigerian electricity sector.

economies of scale for increased production output.

3.5.3. Societal practices and public values

3.5.4. Economic considerations

provide include:

There was an increase in manufacturing activities during this era. Increased electricity requirements for industries posed a greater challenge with regards to electricity supply infrastructure. Inadequate supply during the latter part of this era impacted on many manufacturing and cottage industries. Industrial growth was pegged as a result of inadequate electricity supply infrastructure. Most industries opted for self-generation of electricity for their industrial needs. Indeed, this infrastructure deficit resulted in the need for planning and future provision of more electricity supply infrastructure.

#### 3.5. Information (micro-processor) era—early 2000s

During this era, four major drivers of energy systems change were noticeable:


#### 3.5.1. Technological considerations

During this era, the use of microprocessor technology was on the rise which impacted on automation of processes in different sectors. In manufacturing, microprocessor technology aided the automation of many industrial processes. The use of Programmable Logic Controllers (PLCs), industrial sensors and other related technologies in manufacturing depended on microprocessor technology. The automation of several industrial processes aided increased production of goods. Even though there was more attention on energy efficiency and energy conservation measures, the introduction of these new technologies in manufacturing also impacted on electricity demand as more industries opted for automation to improve productivity.

#### 3.5.2. Policy and institutional interventions

This era is characterized by democratic and civil institutions involved in the decision-making and policy process [17]. At the start of this era, two institutions emerged:


Owing to inefficiencies in the Nigerian electricity sector, the Nigerian government started a process of unbundling the National Electric Power Authority (NEPA) in order to reduce government bureaucratic process in electricity supply infrastructure provision, operation and maintenance. The PHCN was established on 5th May 2005 as a holding company, owning the various divisions responsible for generation, transmission and distribution of electrical energy. This paved the way for the future privatization of the PHCN, with transfer and controls of some national electrical power assets by private companies. The privatization process also brought about some changes in models of electricity financing, operation and maintenance.

The NERC was established on 31st October 2007 as a regulatory body for the Nigerian power industry. The NERC has the responsibility for issuance of licenses and permits to market participants in the Nigerian electricity sector. They also ensure compliance to rules and regulatory guidelines in the Nigerian electricity sector.

#### 3.5.3. Societal practices and public values

3.4.5. Economic considerations

36 Energy Management for Sustainable Development

exploration and production.

more electricity supply infrastructure.

1. Technological interventions

4. Economic considerations

to improve productivity.

3.5.2. Policy and institutional interventions

• Power Holding Company of Nigeria (PHCN).

• Nigerian Electricity Regulatory Commission (NERC)

3.5.1. Technological considerations

2. Policy and institutional interventions 3. Societal practices and public values

3.5. Information (micro-processor) era—early 2000s

During this era, four major drivers of energy systems change were noticeable:

This period saw changes in trade and investment dynamics. The discovery of more natural resources paved the way for further trade activities and other economic considerations investments. Crude oil export started in the 1970s. Export of agricultural produce continued but at a reduced rate due to a shift in attention from agriculture to crude oil as the major income earner for the country. The produce that was now exported (crude oil) required a lot of energy for its

There was an increase in manufacturing activities during this era. Increased electricity requirements for industries posed a greater challenge with regards to electricity supply infrastructure. Inadequate supply during the latter part of this era impacted on many manufacturing and cottage industries. Industrial growth was pegged as a result of inadequate electricity supply infrastructure. Most industries opted for self-generation of electricity for their industrial needs. Indeed, this infrastructure deficit resulted in the need for planning and future provision of

During this era, the use of microprocessor technology was on the rise which impacted on automation of processes in different sectors. In manufacturing, microprocessor technology aided the automation of many industrial processes. The use of Programmable Logic Controllers (PLCs), industrial sensors and other related technologies in manufacturing depended on microprocessor technology. The automation of several industrial processes aided increased production of goods. Even though there was more attention on energy efficiency and energy conservation measures, the introduction of these new technologies in manufacturing also impacted on electricity demand as more industries opted for automation

This era is characterized by democratic and civil institutions involved in the decision-making

and policy process [17]. At the start of this era, two institutions emerged:

This era saw lots of private investments in the provision of infrastructure to satisfy the increased demand for convenience and comfort. This was evidenced in the emergence of shopping malls, cinemas, nature reserves and parks. The emergence of these infrastructure posed more pressure on demand for energy. This era continued to experience increased migration and urbanization which posed some infrastructure challenges (including energy). Indeed, in this era, the public value for energy services had increased and people had more dependence on energy to fulfill and accomplish several social practices.

#### 3.5.4. Economic considerations

In this era, the need for increased productivity led to the embrace of automation in the industrial and manufacturing sector. Economic consideration during this era was characterized by the need to address both internal (local) and external (export) demand for certain products. Indeed, this led to more manufacturing activities. Most industrial players had to invest in electrical generation plants to satisfy their electricity needs. Self-generation of electricity also impacted on cost of finished goods as some companies could not measure up to the economies of scale for increased production output.

#### 4. Important learnings from the Nigerian energy transitions

In Nigeria, a very important aspect of the governance of energy and electricity infrastructure provision is the individual interest of policy actors, the individualistic nature of which further emphasizes the need to incorporate economic and social psychological thinking. Some underlying questions they ask themselves before deciding on what type of energy infrastructure to provide include:

• How much does this infrastructure cost? Can our current budget accommodate it?

• How long will it take to deploy this infrastructure? Is it something that I can commission before leaving office?

there is a good (long term) political relationship with the trade partners, wherever they may be. Indeed, it is easier to get entangled in the global prospect for natural gas, which can lead to

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Looking into the future, the major factor that could either make or break (clean) energy production is policy. This is the topmost variable because: policy plays a major role with respect to investment direction for most investors; it impacts on changes on the supply side of energy systems and infrastructure through definition of standards; and it imposes consider-

Within the Nigerian context, a major factor that led to the displacement of coal with liquid fuel and natural gas for electricity generation was simply the economics of natural gas over coal. Coal production and use for electricity generation in Nigeria is more expensive than the use of liquid fuels and natural gas. This transition started happening in the 1950s, but became more entrenched from the 1970s. All the coal fired power plants in Nigeria built from the 1920s to the 1950s have all been retired. Indeed, natural gas will gain a lot more grounds in Nigeria in the coming years due to its availability and the policy direction of the government encouraging

In Nigeria, there have been lots of changes in energy technology and use over time. This will continue going into the future. Historically, Nigeria has transited from the use of steam engines, to coal-fired technology, thermal power plants and renewables. Going into the future, there will be more changes which will be shaped by the changing nature and politics of

In recent times, there has been a rise in the deployment of decentralized off-grid solar solutions in Nigeria. The rapid rise of renewables will continue and solar power will become a regular feature on the energy landscape. New technologies will support global deployment of wind farms and solar solutions. The rise in renewable solutions needed for a clean energy future will be driven more by the increase in energy demand for electricity. Incorporating these renewable technologies will also have impact on the traditional electricity grid as new hybrid grids (transmitting electricity over long distance) and micro grids (playing strategic role in electricity distribution and providing flexibility) will be the mainstream technologies in the future.

As is now being experienced in major urban centres in Nigeria, buildings are now producing electricity through roof top solar solutions. In the future, more buildings will produce energy rather than consume energy. Buildings will also function as energy hubs in the future, offering the entire energy system more flexibility and also ensuring stability of the electricity grid. The use of smart meters, greater energy storage capacity and low cost solar cells will be important

Energy sources play a vital role in energy systems change. In Nigeria, it all started with the use of steam engines for electricity generation. The discovery of coal as an energy source (in 1909)

a lot of energy security issues, both domestically and internationally.

able changes in energy demand patterns and behaviours.

the use of natural gas for electricity production.

electricity infrastructure provision.

4.2. The role of technology in energy systems change

technology catalysts of a cleaner electricity future.

4.3. The role of energy (re)sources in energy systems change

• What social and political benefits will the provision of this infrastructure confer (on me and the populace)? Will the provision of this infrastructure offer me the possibility of acceptance and possible re-election by the populace?

Indeed, these aforementioned questions are crucial for individual actors within policy frameworks in taking decisions [20]. These also impacts on the governance of energy. This is in contrast with one of the arguments of Kuzemko et al. [21] who asserts that in governing sustainable energy systems change, innovation is important in sustainable energy transitions. In Nigeria, political actor interests are a major driver of energy transitions. The practice of policy making, intertwined with the interests of the political actors, is the principal driver of energy transitions. This is supported by the argument that linking governance with practices and outcomes, and defining energy and climate actor groups are very important in governing changes in energy supply infrastructure in a sustainable way [21, 22].

In Nigeria, institutional (government) interventions, changes in policy direction and new technology pathways constituted major drivers of changes in Nigeria's electricity systems. There are similar trajectories between the energy transitions dynamics of the Nigerian and the Dutch system. In considering the dynamics of the energy transitions in the Dutch electricity systems (1960–2004), Verbong argues that: changing perceptions and goals (1960–1973); direct government interventions (1973–1989); and major changes in rules, network and technology (1989–2004) characterized the Dutch electricity sector [23]. The Dutch system compares with that of Nigeria because electricity infrastructure provisions were influenced by: changing perceptions and goals prior to Nigeria's independence in 1960 (1890–1960) with evidence in changing technology and fuel sources for electricity generation during that period; direct government interventions (1940–1970), an example was the intervention by the then Nigerian Government Electricity Undertaking (NGEU) in 1946 to provide new electricity infrastructure by 200% in a space of 10-years [24]; and major changes in rules (2005–2015), characterized by the new electrical power sector reforms roadmap [25].

The following sub-sections discuss further four important influences of politics, technology, energy sources and geographies of energy on energy systems change in Nigeria.

#### 4.1. Role of politics in energy systems change

Politics play a major role in effecting changes in energy supply infrastructure. For instance, the politics around crude oil and natural gas production and trade is vital for guaranteeing continuity of supply of electrical energy since most electrical power plants depends on the oil and gas sector for fuel to fire the power plants. This means fuel supply (in the forms of liquid fuel and natural gas) for most electrical power plants are highly dependent on the production, market, economics and political dynamics around crude oil and natural gas supply [26].

Arguably, the gas market is a lot more rigid than the oil market. This is because it requires large and expensive investments to ensure the easy transportation of gas around the world. Investing resources in a lot of long term infrastructure for this sort of business requires that there is a good (long term) political relationship with the trade partners, wherever they may be. Indeed, it is easier to get entangled in the global prospect for natural gas, which can lead to a lot of energy security issues, both domestically and internationally.

Looking into the future, the major factor that could either make or break (clean) energy production is policy. This is the topmost variable because: policy plays a major role with respect to investment direction for most investors; it impacts on changes on the supply side of energy systems and infrastructure through definition of standards; and it imposes considerable changes in energy demand patterns and behaviours.

Within the Nigerian context, a major factor that led to the displacement of coal with liquid fuel and natural gas for electricity generation was simply the economics of natural gas over coal. Coal production and use for electricity generation in Nigeria is more expensive than the use of liquid fuels and natural gas. This transition started happening in the 1950s, but became more entrenched from the 1970s. All the coal fired power plants in Nigeria built from the 1920s to the 1950s have all been retired. Indeed, natural gas will gain a lot more grounds in Nigeria in the coming years due to its availability and the policy direction of the government encouraging the use of natural gas for electricity production.

#### 4.2. The role of technology in energy systems change

• How long will it take to deploy this infrastructure? Is it something that I can commission

• What social and political benefits will the provision of this infrastructure confer (on me and the populace)? Will the provision of this infrastructure offer me the possibility of

Indeed, these aforementioned questions are crucial for individual actors within policy frameworks in taking decisions [20]. These also impacts on the governance of energy. This is in contrast with one of the arguments of Kuzemko et al. [21] who asserts that in governing sustainable energy systems change, innovation is important in sustainable energy transitions. In Nigeria, political actor interests are a major driver of energy transitions. The practice of policy making, intertwined with the interests of the political actors, is the principal driver of energy transitions. This is supported by the argument that linking governance with practices and outcomes, and defining energy and climate actor groups are very important in governing

In Nigeria, institutional (government) interventions, changes in policy direction and new technology pathways constituted major drivers of changes in Nigeria's electricity systems. There are similar trajectories between the energy transitions dynamics of the Nigerian and the Dutch system. In considering the dynamics of the energy transitions in the Dutch electricity systems (1960–2004), Verbong argues that: changing perceptions and goals (1960–1973); direct government interventions (1973–1989); and major changes in rules, network and technology (1989–2004) characterized the Dutch electricity sector [23]. The Dutch system compares with that of Nigeria because electricity infrastructure provisions were influenced by: changing perceptions and goals prior to Nigeria's independence in 1960 (1890–1960) with evidence in changing technology and fuel sources for electricity generation during that period; direct government interventions (1940–1970), an example was the intervention by the then Nigerian Government Electricity Undertaking (NGEU) in 1946 to provide new electricity infrastructure by 200% in a space of 10-years [24]; and major changes in rules (2005–2015), characterized by

The following sub-sections discuss further four important influences of politics, technology,

Politics play a major role in effecting changes in energy supply infrastructure. For instance, the politics around crude oil and natural gas production and trade is vital for guaranteeing continuity of supply of electrical energy since most electrical power plants depends on the oil and gas sector for fuel to fire the power plants. This means fuel supply (in the forms of liquid fuel and natural gas) for most electrical power plants are highly dependent on the production, market, economics and political dynamics around crude oil and natural gas supply [26].

Arguably, the gas market is a lot more rigid than the oil market. This is because it requires large and expensive investments to ensure the easy transportation of gas around the world. Investing resources in a lot of long term infrastructure for this sort of business requires that

energy sources and geographies of energy on energy systems change in Nigeria.

acceptance and possible re-election by the populace?

changes in energy supply infrastructure in a sustainable way [21, 22].

the new electrical power sector reforms roadmap [25].

4.1. Role of politics in energy systems change

before leaving office?

38 Energy Management for Sustainable Development

In Nigeria, there have been lots of changes in energy technology and use over time. This will continue going into the future. Historically, Nigeria has transited from the use of steam engines, to coal-fired technology, thermal power plants and renewables. Going into the future, there will be more changes which will be shaped by the changing nature and politics of electricity infrastructure provision.

In recent times, there has been a rise in the deployment of decentralized off-grid solar solutions in Nigeria. The rapid rise of renewables will continue and solar power will become a regular feature on the energy landscape. New technologies will support global deployment of wind farms and solar solutions. The rise in renewable solutions needed for a clean energy future will be driven more by the increase in energy demand for electricity. Incorporating these renewable technologies will also have impact on the traditional electricity grid as new hybrid grids (transmitting electricity over long distance) and micro grids (playing strategic role in electricity distribution and providing flexibility) will be the mainstream technologies in the future.

As is now being experienced in major urban centres in Nigeria, buildings are now producing electricity through roof top solar solutions. In the future, more buildings will produce energy rather than consume energy. Buildings will also function as energy hubs in the future, offering the entire energy system more flexibility and also ensuring stability of the electricity grid. The use of smart meters, greater energy storage capacity and low cost solar cells will be important technology catalysts of a cleaner electricity future.

#### 4.3. The role of energy (re)sources in energy systems change

Energy sources play a vital role in energy systems change. In Nigeria, it all started with the use of steam engines for electricity generation. The discovery of coal as an energy source (in 1909) changed the energy infrastructure landscape, leading to a switch from the use of steam engines to the adoption of coal-fired power plants. The need to diversify the electricity infrastructure mix led to the development of hydropower plants in Nigeria (with the formation of the Niger Dams Authority). The discovery of crude-oil in commercial quantities (in 1956) had a considerable impact on the electricity infrastructure landscape in Nigeria. The overriding economics of crude oil and natural gas over coal led to a shift to the use of (oil and gas-fired) thermal power plants. Increased demand and consumption of energy in Nigeria have been partly influenced by the availability of energy resources. Figure 2 shows the Nigerian energy flow linking primary energy resources to end-use sectors.

energy also considers how territorial, locational and spatial landscape impacts on (and co-

Historical Drivers of Energy Infrastructure Change in Nigeria (1800–2015)

http://dx.doi.org/10.5772/intechopen.74002

41

The geographies of energy played a very important role in Nigeria's energy transitions and infrastructure provision. Prior to Nigeria's independence in 1960, developmental infrastructure projects and provision were centred on regions. Starting with steam powered generation plants in the late 1800s, the discovery of coal in 1909 paved the way for many coal-fired electricity generation plants (mostly around the regions where coal reserves were available). Lagos was the only exception. This was largely because there was already rail infrastructure connecting some parts of eastern Nigeria (Enugu) to Lagos where coal could be easily transported via rail to the power plant in Lagos. Figure 3 shows a map of the geopolitical

Most crude oil and natural gas resources are concentrated around the South-South and South-East zones of Nigeria. These zones also have a higher concentration of: electricity power plants; natural gas refineries and export terminals; and crude oil refineries and export terminals. Indeed, these zones have the highest concentration of energy production and electricity generation infrastructure in Nigeria. However, for political reasons, government infrastructure decisions have also favoured setting up crude oil refineries outside the zones where the resources are. An example is the crude oil refinery located in Kaduna, North-Central Nigeria. The natural crude had to be transported to the refineries via pipelines. Indeed, political decisions of this sort has created historical tensions among socio-political groups in the geographies where the natural resources are domicile (and beyond), leading to cases of pipeline vandalism, political actions and other forms of externalities which impacts on the energy

constitutes) energy processes.

infrastructure landscape and energy security.

Figure 3. Map of the geo-political zones in Nigeria (Source: http://www.nigerianmuse.com).

zones in Nigeria.

Energy flow in society starts with the natural energy sources (such as coal and crude oil) which are then converted into different usable forms that society consumes. These usable forms of energy materializes through the services they render society (as evident in Figure 2). This is evident through the greater use of energy resources, driven by the need for comfort and more productivity. In Nigeria, the increased societal use of energy resources is impacted by three main sectors: building; manufacturing; and transportation sectors.

#### 4.4. The role of 'geographies of energy' in energy systems change

Aside technological interventions, politics and energy resources, a major driver of energy systems change in Nigeria are the 'geographies of energy' which encapsulates the social, cultural and political dimensions of energy production and consumption. The geographies of

Figure 2. The Nigerian energy flow ([27], p. 90).

energy also considers how territorial, locational and spatial landscape impacts on (and coconstitutes) energy processes.

changed the energy infrastructure landscape, leading to a switch from the use of steam engines to the adoption of coal-fired power plants. The need to diversify the electricity infrastructure mix led to the development of hydropower plants in Nigeria (with the formation of the Niger Dams Authority). The discovery of crude-oil in commercial quantities (in 1956) had a considerable impact on the electricity infrastructure landscape in Nigeria. The overriding economics of crude oil and natural gas over coal led to a shift to the use of (oil and gas-fired) thermal power plants. Increased demand and consumption of energy in Nigeria have been partly influenced by the availability of energy resources. Figure 2 shows the Nigerian energy flow

Energy flow in society starts with the natural energy sources (such as coal and crude oil) which are then converted into different usable forms that society consumes. These usable forms of energy materializes through the services they render society (as evident in Figure 2). This is evident through the greater use of energy resources, driven by the need for comfort and more productivity. In Nigeria, the increased societal use of energy resources is impacted by three

Aside technological interventions, politics and energy resources, a major driver of energy systems change in Nigeria are the 'geographies of energy' which encapsulates the social, cultural and political dimensions of energy production and consumption. The geographies of

linking primary energy resources to end-use sectors.

40 Energy Management for Sustainable Development

Figure 2. The Nigerian energy flow ([27], p. 90).

main sectors: building; manufacturing; and transportation sectors.

4.4. The role of 'geographies of energy' in energy systems change

The geographies of energy played a very important role in Nigeria's energy transitions and infrastructure provision. Prior to Nigeria's independence in 1960, developmental infrastructure projects and provision were centred on regions. Starting with steam powered generation plants in the late 1800s, the discovery of coal in 1909 paved the way for many coal-fired electricity generation plants (mostly around the regions where coal reserves were available). Lagos was the only exception. This was largely because there was already rail infrastructure connecting some parts of eastern Nigeria (Enugu) to Lagos where coal could be easily transported via rail to the power plant in Lagos. Figure 3 shows a map of the geopolitical zones in Nigeria.

Most crude oil and natural gas resources are concentrated around the South-South and South-East zones of Nigeria. These zones also have a higher concentration of: electricity power plants; natural gas refineries and export terminals; and crude oil refineries and export terminals. Indeed, these zones have the highest concentration of energy production and electricity generation infrastructure in Nigeria. However, for political reasons, government infrastructure decisions have also favoured setting up crude oil refineries outside the zones where the resources are. An example is the crude oil refinery located in Kaduna, North-Central Nigeria. The natural crude had to be transported to the refineries via pipelines. Indeed, political decisions of this sort has created historical tensions among socio-political groups in the geographies where the natural resources are domicile (and beyond), leading to cases of pipeline vandalism, political actions and other forms of externalities which impacts on the energy infrastructure landscape and energy security.

Figure 3. Map of the geo-political zones in Nigeria (Source: http://www.nigerianmuse.com).

#### 5. Conclusion

The Nigerian historical energy transition with respect to the evolution of energy infrastructure provisions was investigated. The dominant drivers of electricity infrastructure supply within each energy era in Nigeria were also investigated. These drivers, which comprises technological interventions and pathways, institutional interventions, social practices and public values, energy resources and other economic considerations, played an important role in the governance and provision of historical electricity supply infrastructure in Nigeria.

much people trust these parties will influence the acceptability of energy policies. Knowledge and understanding of Nigeria's energy past can surely shape current and future decisions. Short term energy decisions have to be put in perspective with the longer term visions in order

Historical Drivers of Energy Infrastructure Change in Nigeria (1800–2015)

http://dx.doi.org/10.5772/intechopen.74002

43

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[2] Cherp A, Jewell J, Goldthau A. Governing global energy: Systems, transitions, complex-

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[5] OECD/IEA, IRENA. Perspectives for the Energy Transition: Investment Needs for a Low-Carbon Energy System [Internet]. Cedex, France: International Energy Agency; 2017. Available from: http://www.irena.org/DocumentDownloads/Publications/Perspectives\_

[6] UNEP. Financing Renewable Energy in Developing Countries: Drivers and Barriers for Private Finance in Sub-Saharan Africa. Innovative Financing for Sustainability. Geneva,

[7] REN21. Renewables 2013 Global Status Report [Internet]. Renewable Energy Policy Network for the 21st Century. Paris, France; 2013. Available from: www.ren21.net/gsr

[8] Edomah N, Foulds C, Jones A. Energy transitions in Nigeria: The evolution of energy infrastructure provision (1800–2015) [Internet]. Energies. Basel, Switzerland: MDPI. 2016;

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to limit the effects of unintended consequences.

Address all correspondence to: nedomah@pau.edu.ng

Pan-Atlantic University, Lagos, Nigeria

ity. Global Policy. 2011;2:75-88

for\_the\_Energy\_Transition\_2017.pdf

Author details

Norbert Edomah

References

1997

A complex connection between resources, trade, institutions and political structures existed. These complexities were further aggravated by the creation of several decision making institutions within each energy era, as well as the policy direction of the government. Decisions by these (public) institutions led to serial changes, and eventual transition, in the use of different primary energy resources (coal, crude oil, natural gas) to satisfy the growing demand for energy. It also reveals that the increased use of primary energy resources were primarily influenced by the availability of those resources, while the growing demand served as a secondary reason.

This chapter presents the need for a greater understanding of the motives and objectives of energy systems supply. What exactly motivates the changes in the energy sector in a given country as against the background of the overall energy demand and supply situation? Possible motives, such as competitiveness, public acceptance, energy security and environmental concerns—within institutional contexts and policy frameworks—needs to be investigated at country levels, for a better understanding of the key drivers of energy transitions within countries.

There is a need to understand the drivers and governance of changes in the respective energy sectors. How are changes promoted in the energy sector? Some possible drivers, such as: technological innovation, government policies, etc., needs to be investigated at country level to ascertain their impact on the institutional structures and frameworks of energy policy governance.

The study of Nigeria's energy transitions presents some policy implications. Since energy infrastructure choices contribute to environmental problems, and changing these energy infrastructure choices requires adequate knowledge of their effects and consequences, there is need for a wide range of changes in energy policies and energy systems to help address these problems. Energy users, including policy makers, generally prefer energy policies that is perceived to have more benefits and less cost. However, since energy infrastructure provision is primarily a political choice, the acceptance of different energy policies (and changes in energy supply systems) is influenced by institutional actors within institutions through institutional values, workings and frameworks responsible for energy infrastructure decisions and choices.

Energy production, distribution and supply are very complex matters. This complexity is evident when viewed with respect to the role of technology, energy resources and geographies of energy in effecting changes in energy supply systems. This implies reliance on parties, such as: energy companies, scientists, non-governmental organizations and policy makers. How much people trust these parties will influence the acceptability of energy policies. Knowledge and understanding of Nigeria's energy past can surely shape current and future decisions. Short term energy decisions have to be put in perspective with the longer term visions in order to limit the effects of unintended consequences.

#### Author details

5. Conclusion

42 Energy Management for Sustainable Development

secondary reason.

countries.

governance.

The Nigerian historical energy transition with respect to the evolution of energy infrastructure provisions was investigated. The dominant drivers of electricity infrastructure supply within each energy era in Nigeria were also investigated. These drivers, which comprises technological interventions and pathways, institutional interventions, social practices and public values, energy resources and other economic considerations, played an important role in the gover-

A complex connection between resources, trade, institutions and political structures existed. These complexities were further aggravated by the creation of several decision making institutions within each energy era, as well as the policy direction of the government. Decisions by these (public) institutions led to serial changes, and eventual transition, in the use of different primary energy resources (coal, crude oil, natural gas) to satisfy the growing demand for energy. It also reveals that the increased use of primary energy resources were primarily influenced by the availability of those resources, while the growing demand served as a

This chapter presents the need for a greater understanding of the motives and objectives of energy systems supply. What exactly motivates the changes in the energy sector in a given country as against the background of the overall energy demand and supply situation? Possible motives, such as competitiveness, public acceptance, energy security and environmental concerns—within institutional contexts and policy frameworks—needs to be investigated at country levels, for a better understanding of the key drivers of energy transitions within

There is a need to understand the drivers and governance of changes in the respective energy sectors. How are changes promoted in the energy sector? Some possible drivers, such as: technological innovation, government policies, etc., needs to be investigated at country level to ascertain their impact on the institutional structures and frameworks of energy policy

The study of Nigeria's energy transitions presents some policy implications. Since energy infrastructure choices contribute to environmental problems, and changing these energy infrastructure choices requires adequate knowledge of their effects and consequences, there is need for a wide range of changes in energy policies and energy systems to help address these problems. Energy users, including policy makers, generally prefer energy policies that is perceived to have more benefits and less cost. However, since energy infrastructure provision is primarily a political choice, the acceptance of different energy policies (and changes in energy supply systems) is influenced by institutional actors within institutions through institutional values, workings and

Energy production, distribution and supply are very complex matters. This complexity is evident when viewed with respect to the role of technology, energy resources and geographies of energy in effecting changes in energy supply systems. This implies reliance on parties, such as: energy companies, scientists, non-governmental organizations and policy makers. How

frameworks responsible for energy infrastructure decisions and choices.

nance and provision of historical electricity supply infrastructure in Nigeria.

Norbert Edomah

Address all correspondence to: nedomah@pau.edu.ng

Pan-Atlantic University, Lagos, Nigeria

#### References


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12.022


**Chapter 3**

**Provisional chapter**

**Towards a Sustainable Energy Future for Sub-Saharan**

**Towards a Sustainable Energy Future for Sub-Saharan** 

Current global population is estimated at 7.5 billion with 1.25 billion living in developed countries and 6.25 billion in less developed countries. Africa's population is approximated at 1.25 billion with 1.02 billion in sub-Saharan Africa. Globally, an estimated 1.4 billion people lack access to electricity and 3 billion rely on solid fuels for cooking and space heating. Two thirds of those lacking access to electricity live in sub-Saharan Africa, whereas only about 16% of those in sub-Saharan Africa use modern energy forms as the primary cooking fuel. Lack of access to electricity has adverse socio-economic effects, while heavy reliance on solid fuels has negative socio-economic, health, and environmental impacts. Several initiatives are being undertaken to mitigate the situation; notable are future aspirations for universal access to clean and modern energy expressed in the 2030 sustainable development goals (goal number 7), 2063 African Union Commission Agenda, Paris Agreement, and the United Nations Sustainable Energy for All (SE4A). This chapter discusses the past and present energy situation and presents possible scenarios for a sustainable energy future in sub-Saharan Africa, with a particular emphasis

**Keywords:** sub-Saharan Africa, access to electricity, solid fuels, modern energy forms,

It is now, generally, agreed that access to advanced forms of energy is associated with improved and sustainable lifestyles; this has reinforced aspirations for universal access to clean and modern energy for all. Energy access is understood to mean the user's ability to access and utilise both electricity and clean cooking technologies. Achieving this univer-

> © 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

© 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,

distribution, and reproduction in any medium, provided the original work is properly cited.

DOI: 10.5772/intechopen.75953

**Africa**

**Africa**

Shadreck Mubiana Situmbeko

Shadreck Mubiana Situmbeko

http://dx.doi.org/10.5772/intechopen.75953

**Abstract**

on Southern Africa.

**1. Introduction**

sustainable energy future

Additional information is available at the end of the chapter

Additional information is available at the end of the chapter

#### **Towards a Sustainable Energy Future for Sub-Saharan Africa Towards a Sustainable Energy Future for Sub-Saharan Africa**

DOI: 10.5772/intechopen.75953

Shadreck Mubiana Situmbeko Shadreck Mubiana Situmbeko

Additional information is available at the end of the chapter Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.75953

#### **Abstract**

Current global population is estimated at 7.5 billion with 1.25 billion living in developed countries and 6.25 billion in less developed countries. Africa's population is approximated at 1.25 billion with 1.02 billion in sub-Saharan Africa. Globally, an estimated 1.4 billion people lack access to electricity and 3 billion rely on solid fuels for cooking and space heating. Two thirds of those lacking access to electricity live in sub-Saharan Africa, whereas only about 16% of those in sub-Saharan Africa use modern energy forms as the primary cooking fuel. Lack of access to electricity has adverse socio-economic effects, while heavy reliance on solid fuels has negative socio-economic, health, and environmental impacts. Several initiatives are being undertaken to mitigate the situation; notable are future aspirations for universal access to clean and modern energy expressed in the 2030 sustainable development goals (goal number 7), 2063 African Union Commission Agenda, Paris Agreement, and the United Nations Sustainable Energy for All (SE4A). This chapter discusses the past and present energy situation and presents possible scenarios for a sustainable energy future in sub-Saharan Africa, with a particular emphasis on Southern Africa.

**Keywords:** sub-Saharan Africa, access to electricity, solid fuels, modern energy forms, sustainable energy future

#### **1. Introduction**

It is now, generally, agreed that access to advanced forms of energy is associated with improved and sustainable lifestyles; this has reinforced aspirations for universal access to clean and modern energy for all. Energy access is understood to mean the user's ability to access and utilise both electricity and clean cooking technologies. Achieving this univer-

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

sal access in the developing world especially in sub-Saharan Africa has, however, faced several challenges. Sub-Saharan Africa (SSA) refers to the area lying south of the Sahara desert; it consists of all countries that are fully or partially located south of the Sahara and mainly excludes all countries in North Africa and all countries that may lie in sub-Saharan Africa but belonging to the Arab states. It is highly contended that SSA remains the most energy (modern~) impoverished region of the world. For instance, the International Energy Agency (IEA) says that more than 600 million people do not have access to electricity, and close to 800 million people rely on traditional biomass fuels and unimproved cookstoves in sub-Saharan Africa [1]. In the year 2000, only 22.6% of the population in sub-Saharan Africa had access to electricity, compared with 40.8% in Asia, 86.6% in Latin America and 91.1% in the Middle East [2]. Although it can be argued that this situation has some historical connotations, it is also quite true that it has persisted this long due to variations in national developmental priorities, as well as inefficient governance and suboptimal resources utilisation. Historically, electricity development in sub-Saharan Africa came about for three major reasons: as an amenity or symbol of modernity for non-African settlers, a source of power for mines and industry, or as a stimulus for industrial development [3]. During the colonial era, African residential areas were systematically and deliberately excluded from connection to grids, since Africans were not considered to have any need for electricity.

and telecommunications services. Lack or limited access to electricity, therefore, has negative

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Electricity supply technologies refer to combinations of primary energy resources, electricity generating equipment and distribution infrastructure; the energy resources maybe fossil (coal, oil, gas) or nuclear (uranium, plutonium) or renewables (solar PV, wind, small and large hydro, biomass and waste, biofuels, geothermal), or any mixes thereof. The distribution infrastructure maybe grid-connected and would include transmission and distribution networks, or maybe based on distributed energy technologies. Distributed energy resources encompass mini-grids, micro-grids, stand-alone systems (such as solar home systems, solar lanterns),

The first electricity supply power plant in Africa was established in the British southern African settler Cape Colony in the 1880s; in the early twentieth century, electricity generation gradually spreads across the continent. In the decades following the end of World War II, electricity systems evolved into large centralised plants, especially hydroelectric plants, mainly to

The long-lasting effects of this historical exclusion of indigenous populations continue to be evident to date despite post-independence efforts at national and regional grid roll out and rural electrification. The 2012 World Bank reports show the extent of electricity access in sub-

Traditionally, the electricity supply systems developed into bulk, centralised coal-fired, gas and nuclear-powered plants, hydroelectric dams and large-scale solar power stations and required electricity to be transmitted over long distances to load centres through high voltage (400, 275 and 132 kV) transmission and medium voltage (33 kV, 11 kV, 3.3 kV and 440 V)

In the quest to find solutions to the electricity access problems, several options have been considered including: opening up the energy market to private participation and developing necessary market and regulatory policy framework; streamlining the performance and operation of state owned electricity enterprises; diversifying the energy mix thereby also

**% of National population having access to electricity Number of countries % of Countries**

100 2 4.26 >75 4 8.51 >50 14 29.79 >25 28 59.57 <25 19 40.43 <10 3 6.38

socio-economic implications [8].

energy efficiency and storage technologies.

Saharan Africa as indicated in **Table 1**.

distribution three-phase systems [9].

**Table 1.** Access to electricity in sub-Saharan Africa [3].

serve mining interests particularly for refining aluminium [3].

Nonetheless, the need to resolve the problem of low or lack of access to clean and modern energy services has been reaffirmed nationally and internationally as expressed by the Sustainable Energy for All initiative [4], the Paris Agreement [5], the 2030 Agenda for Sustainable Development [6] and the Agenda 2063 [7]. In the pursuit for solutions, it is worth noting the consensus, however, that this should be done in a sustainable and environmentally benign manner.

This chapter presents a situational review of the energy sector in SSA and examines possible complementary strategies that could strengthen efforts to attaining universal access to clean and modern energy. Section 2 examines electricity supply; Section 3 explores clean fuels and technologies for cooking, while Section 4 presents a review on biofuels for transportation; and finally Section 5 windups the chapter with conclusion and a way forward.

#### **2. Electricity**

Currently, on a global level, more than 1 billion people live without access to electricity, with more than half of them found in sub-Saharan Africa (SSA). Electricity is a clean and efficient source of energy; access to affordable, reliable and sustainable electricity supplies is important for the delivery of clean water, sanitation and healthcare services, as well as for providing reliable and efficient lighting, heating, cooking, mechanical power, and transport and telecommunications services. Lack or limited access to electricity, therefore, has negative socio-economic implications [8].

Electricity supply technologies refer to combinations of primary energy resources, electricity generating equipment and distribution infrastructure; the energy resources maybe fossil (coal, oil, gas) or nuclear (uranium, plutonium) or renewables (solar PV, wind, small and large hydro, biomass and waste, biofuels, geothermal), or any mixes thereof. The distribution infrastructure maybe grid-connected and would include transmission and distribution networks, or maybe based on distributed energy technologies. Distributed energy resources encompass mini-grids, micro-grids, stand-alone systems (such as solar home systems, solar lanterns), energy efficiency and storage technologies.

The first electricity supply power plant in Africa was established in the British southern African settler Cape Colony in the 1880s; in the early twentieth century, electricity generation gradually spreads across the continent. In the decades following the end of World War II, electricity systems evolved into large centralised plants, especially hydroelectric plants, mainly to serve mining interests particularly for refining aluminium [3].

The long-lasting effects of this historical exclusion of indigenous populations continue to be evident to date despite post-independence efforts at national and regional grid roll out and rural electrification. The 2012 World Bank reports show the extent of electricity access in sub-Saharan Africa as indicated in **Table 1**.

Traditionally, the electricity supply systems developed into bulk, centralised coal-fired, gas and nuclear-powered plants, hydroelectric dams and large-scale solar power stations and required electricity to be transmitted over long distances to load centres through high voltage (400, 275 and 132 kV) transmission and medium voltage (33 kV, 11 kV, 3.3 kV and 440 V) distribution three-phase systems [9].

In the quest to find solutions to the electricity access problems, several options have been considered including: opening up the energy market to private participation and developing necessary market and regulatory policy framework; streamlining the performance and operation of state owned electricity enterprises; diversifying the energy mix thereby also


**Table 1.** Access to electricity in sub-Saharan Africa [3].

sal access in the developing world especially in sub-Saharan Africa has, however, faced several challenges. Sub-Saharan Africa (SSA) refers to the area lying south of the Sahara desert; it consists of all countries that are fully or partially located south of the Sahara and mainly excludes all countries in North Africa and all countries that may lie in sub-Saharan Africa but belonging to the Arab states. It is highly contended that SSA remains the most energy (modern~) impoverished region of the world. For instance, the International Energy Agency (IEA) says that more than 600 million people do not have access to electricity, and close to 800 million people rely on traditional biomass fuels and unimproved cookstoves in sub-Saharan Africa [1]. In the year 2000, only 22.6% of the population in sub-Saharan Africa had access to electricity, compared with 40.8% in Asia, 86.6% in Latin America and 91.1% in the Middle East [2]. Although it can be argued that this situation has some historical connotations, it is also quite true that it has persisted this long due to variations in national developmental priorities, as well as inefficient governance and suboptimal resources utilisation. Historically, electricity development in sub-Saharan Africa came about for three major reasons: as an amenity or symbol of modernity for non-African settlers, a source of power for mines and industry, or as a stimulus for industrial development [3]. During the colonial era, African residential areas were systematically and deliberately excluded from connection to grids, since Africans were not considered to have any

Nonetheless, the need to resolve the problem of low or lack of access to clean and modern energy services has been reaffirmed nationally and internationally as expressed by the Sustainable Energy for All initiative [4], the Paris Agreement [5], the 2030 Agenda for Sustainable Development [6] and the Agenda 2063 [7]. In the pursuit for solutions, it is worth noting the consensus, however, that this should be done in a sustainable and environmentally

This chapter presents a situational review of the energy sector in SSA and examines possible complementary strategies that could strengthen efforts to attaining universal access to clean and modern energy. Section 2 examines electricity supply; Section 3 explores clean fuels and technologies for cooking, while Section 4 presents a review on biofuels for transportation; and finally Section 5 windups the chapter with conclusion and a way

Currently, on a global level, more than 1 billion people live without access to electricity, with more than half of them found in sub-Saharan Africa (SSA). Electricity is a clean and efficient source of energy; access to affordable, reliable and sustainable electricity supplies is important for the delivery of clean water, sanitation and healthcare services, as well as for providing reliable and efficient lighting, heating, cooking, mechanical power, and transport

need for electricity.

48 Energy Management for Sustainable Development

benign manner.

forward.

**2. Electricity**

integrating distributed energy resources and renewables; promoting sub-continental regional relations and trade in electricity; and developing effective and innovative electricity sector investment financing, and revenue payment and collection systems. The overriding principle behind this paradigm shift is to have efficient, secure and cost-effective electricity services within a framework of market opportunities for competitive business without negating the obligations of national governments to improving access to electricity by unaffording, low income, and quite often rural-based households. Some of these efforts are examined in detail in the following sub-sections:

**3. High system losses:** both technical losses from the ailing transmission and distribution

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The majority of households in many sub-Saharan countries lack grid connection due to the poor state and low coverage of the electricity transmission and distribution networks.

networks, and commercial losses from poor tariffs collection

**2.4. Diversifying the energy mix**

Traditional verticallyintegrated power utility; *(NPU = National* 

*power utility)*

Generation competition only. *(IPP = Independent Power producer)*

**Name Schematic representation** 

#### **2.1. Opening up the energy market to private participation**

Unbundling of state owned electricity systems can be effected **'vertically'** (e.g. for electricity supply, separating generation, transmission, distribution, metering and supply) and/or **'horizontally'** (separating companies of the same type so there is market competition wherever possible). **Table 2** shows some of the common structures for unbundling of the otherwise vertically integrated and state owned electricity supply system:

#### **2.2. Developing necessary market and regulatory policy framework**

Market and regulatory policy frameworks include need for fair and effective sharing and generation of relevant market information and data between stakeholders; addressing difficulties in sourcing investment capital for relatively newer investment markets; the need to develop procedures for resolution of investment, maintenance and operational costs and financial compensation resulting from changes to the power system commercial mechanisms; and provision of long-term market assurances to promote investment and long-term planning.

To this end, most countries have passed legislation establishing national regulation boards with varying mandates to oversee the liberalisation schemes; **Table 3** shows some of the countries that have passed such legislation. **Table 4** shows renewable energy feed-in-tariffs, auctions, net metering and investment incentives adopted by some countries in sub-Saharan Africa.

#### **2.3. Streamlining the performance and operation of state-owned electricity enterprises**

This focuses mainly on the following three aspects:


**3. High system losses:** both technical losses from the ailing transmission and distribution networks, and commercial losses from poor tariffs collection

#### **2.4. Diversifying the energy mix**

integrating distributed energy resources and renewables; promoting sub-continental regional relations and trade in electricity; and developing effective and innovative electricity sector investment financing, and revenue payment and collection systems. The overriding principle behind this paradigm shift is to have efficient, secure and cost-effective electricity services within a framework of market opportunities for competitive business without negating the obligations of national governments to improving access to electricity by unaffording, low income, and quite often rural-based households. Some of these efforts are examined in detail

Unbundling of state owned electricity systems can be effected **'vertically'** (e.g. for electricity supply, separating generation, transmission, distribution, metering and supply) and/or **'horizontally'** (separating companies of the same type so there is market competition wherever possible). **Table 2** shows some of the common structures for unbundling of the otherwise

Market and regulatory policy frameworks include need for fair and effective sharing and generation of relevant market information and data between stakeholders; addressing difficulties in sourcing investment capital for relatively newer investment markets; the need to develop procedures for resolution of investment, maintenance and operational costs and financial compensation resulting from changes to the power system commercial mechanisms; and provision of long-term market assurances to promote investment and long-term

To this end, most countries have passed legislation establishing national regulation boards with varying mandates to oversee the liberalisation schemes; **Table 3** shows some of the countries that have passed such legislation. **Table 4** shows renewable energy feed-in-tariffs, auctions, net

**1. Lack of system capacity:** in terms of both generation, and transmission and distribution infrastructure; this has adversely affected economic and industrial development resulting in inadequate ability for the sector to reinvest for sustainable and expanding power

**2. Poor sector management:** power sector has consistently failed to reach sustainable opera-

metering and investment incentives adopted by some countries in sub-Saharan Africa.

**2.3. Streamlining the performance and operation of state-owned electricity** 

tional efficiency for recovery of both recurrent and capital costs.

This focuses mainly on the following three aspects:

in the following sub-sections:

50 Energy Management for Sustainable Development

planning.

**enterprises**

supply.

**2.1. Opening up the energy market to private participation**

vertically integrated and state owned electricity supply system:

**2.2. Developing necessary market and regulatory policy framework**

The majority of households in many sub-Saharan countries lack grid connection due to the poor state and low coverage of the electricity transmission and distribution networks.

Diversification of the energy system is one way of resolving this problem. Some factors to

Kenya Kenya Energy Act 2006: converted an advisory regulator into a decision making regulator, the

Mozambique Mozambique Minister of Energy's directive July 2006 creates a 'strong' advisory regulator,

Tanzania The Tanzania Electricity Act 2008 provides for the facilitation and regulation of generation,

Uganda The electricity act of 1999 provided for the creation of regulatory authority to oversee the licencing

of liberalisation and introduction of competition in the electricity sector Zambia The Energy Regulatory Board, established through a legislative act of 1995, gives the board the

**power**

Kenya √ √ √ √ √ √ Uganda √ Auction √ √ √

Zambia (Draft Sep 15) √ √ √ √ √ √

**Table 4.** Existing renewable energy feed-in-tariff programs (website: www.bluehorizon.energy [13]).

Namibia √ √ √ √

• delegate regulatory responsibilities to other entities.

Energy Regulation Commission. It also makes the new commission the sole authority over imports

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emphasises the need for transparency and public hearings by the advisory regulator. It also entrusts the regulator with the responsibility of monitoring the performance contract between the

government and Electricidade de Moçambique (EdM), the state owned power utility Namibia The electricity acts of 2000 and 2007 which established the Electricity Control Board that regulates the issuance of licences for electricity generation and related matters South Africa The National Energy Regulator (NERSA) established through the 2006 legislation gives the

> regulator powers to oversee the registration and issuance of licences for the generation, transmission, distribution, as well as the local and international trade of electricity

transmission, transformation, distribution, supply and use of electricity; it also makes provisions for regional trade in electricity as well as for the planning and regulation of rural electrification The section on regulation of rural electrification authorises EWURA, the national electricity

• vary the nature of its regulation depending on the characteristics of the entity performing the

and regulation of electricity generation, transmission, distribution, sale and use. It also enforces matters pertaining to plant and equipment and safety. It was also entrusted with the responsibility

responsibility of issuing licences for the production and handling of energy and petroleum products

**Small hydro**

**Biomass Geothermal**

**1. Dependence on large dams:** the seasonal variability of hydropower output and the impact of prolonged droughts in the region create fragile power systems and increase the financial and climate risks; secondly owing to very high upfront costs, long-term financial viability

consider are as follows:

Source: www.bluehorizon.energy [13]

**Country Legislation**

and exports of electricity

regulator to:

**Table 3.** National energy (electricity) legislations [12].

**Country Wind Solar PV Concentrating solar** 

electrification;

is not assured.

**Table 2.** Electricity supply liberalisation models [10, 11].



**Table 3.** National energy (electricity) legislations [12].

**Name Schematic representation** 

52 Energy Management for Sustainable Development

Wholesale competition only *(DisCo = Distribution* 

*Company)*

Both wholesale and retail competition

Consumer-owned distributed energy resource possibilities

**Table 2.** Electricity supply liberalisation models [10, 11].

**Table 4.** Existing renewable energy feed-in-tariff programs (website: www.bluehorizon.energy [13]).

Diversification of the energy system is one way of resolving this problem. Some factors to consider are as follows:

**1. Dependence on large dams:** the seasonal variability of hydropower output and the impact of prolonged droughts in the region create fragile power systems and increase the financial and climate risks; secondly owing to very high upfront costs, long-term financial viability is not assured.

**2. Dependence on fossil fuels:** the challenges include local air pollution and public health concerns, as well as susceptibility to global fluctuations in fossil fuels prices.

**2.6. Developing effective and innovative revenue payment and collection systems** 

**i. Pay-As-You-Go (PAYG) business model:** Under this model, consumers can finance offgrid renewable electricity systems such as solar lanterns, solar home systems and solar micro-grids either by paying the full cost upfront or by paying in instalments over time using mobile money mechanisms such as M-PESA and Airtel MTN. Two companies, M-Kopa and Mobisol, have adopted this model and are using it in East Africa where offgrid low-income and rising middle-class customers who are unable to pay a once off full purchase price for solar home systems, have been enabled to access electricity services. The M-Kopa systems consist of 8 W solar panels, LED lights, a rechargeable radio, and a cell-phone charger. As of 2016, M-Kopa had connected more than 300,000 homes to solar power (website: www.pwc.co.uk [14]; website: m-kopa.com [15]) while Mobisol, has to date installed more than 3 MW of solar home system capacity in Rwanda and Tanzania

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**ii. Fee-for-Use (F4U) business model**: Under this model, the customer does not buy the stand-alone system, but only pays rent to use it. A solar company retains ownership, ensures that the system is operating properly and is responsible for maintenance. The customer makes a one-time installation payment as well as reoccurring fixed payments based on the size of the system. The M-POWER company offers to Tanzania rural people a solar home system (SHS) which includes: the hardware to generate solar energy (solar panel, storage and wires) and energy using products (EUP) (two lights and phone charger). Customers pay as a pay per period (daily fees). Off Grid Electric maintains proprietorship of SHS and EUPs and develops a network of local artisans/dealers for

The foregoing discussion illustrates that widespread electricity access is achievable as demonstrated by the two countries, Seychelles and Mauritius, with 100% electricity access; it also points to the complexities associated with tackling the problem of electricity access; for instance, three countries have less than 10% access and 50 of the 70 countries recorded have

**Figure 1.** A 100 W solar home system with kit of DC appliances from Mobisol (source: Mobisol, 2017).

**such as flexible payment schemes**

(website: [16] energy-access.gnesd.org) (**Figure 1**).

installation and technical support [17] (**Figure 2**).

less than 50% access.


#### **2.5. Promoting sub-continental regional relations and trade in electricity**

Regional power pools:

Currently, the sub-continent has four regional power pools; intra- and inter-regional power pools collaborations could help improve performance of the power sector through economies of scale, security of supply from a rich energy mix, and cost efficiency through shared energy storage and improved demand side response management.

#### **2.6. Developing effective and innovative revenue payment and collection systems such as flexible payment schemes**

**2. Dependence on fossil fuels:** the challenges include local air pollution and public health

**3. Distributed energy resources (DERs):** the modular nature of renewables such as solar and small-scale hydropower and the improved knowledge and management of energy distribution systems have made DERs an attractive option especially for off-grid applications. Product systems include solar lanterns, solar home systems and solar

**4. Renewables:** offer opportunities for improving and developing energy access as they can

**5. Micro-grids:** a micro-grid is a lower level electricity supply generation and distribution system that delivers electricity to several structures in a village. Micro-grids can supply power to even remote locations because advances in ICTs facilitate demand projecting and pay-as-you-go services. Also, micro-grids do not need huge investments and lengthy construction times—notwithstanding that capital costs are still prohibitive for small- and medium-sized businesses. Initial micro-grids were based on fossil fuels such as diesel; their performance was highly dependent on reliability of fuels supplies as well as fuel prices. However, advancement in renewables has made micro-grids more appealing. An example of a micro-grid is that at a village called Motshegaletau in central Botswana, the village had a population of about 700 as at 1997 projections; the micro-grid consisted of a PV array with an output of 5.7 kW, 48 V dc from 20 x 285 W panels arranged in five parallel rows; two sine wave inverters convert 48 V DC to 230 V AC. Forty-eight batteries rated 2 V DC, 1200 Ah connected in two parallel strings form the battery storage bank rated 48 V DC nominal and 2400 Ah. The grid supplied nine residential houses, a bar, a clinic

**6. Energy efficiency:** supply side and demand side inefficiencies certainly implicate negatively on improving access to electricity supplies; cogeneration and trigeneration technologies can enhance supply side electricity efficiencies. A successful case of biofuel-based cogeneration has been demonstrated in the sugar industry where the bagasse by-product is used to fire steam generators for heat and electricity production. For instance, Mauritius has been able to meet about half of her electricity needs from bagasse cogeneration plants following reforms aimed at making the sugar industry more attractive for investment. A number of countries in East Africa and Southern Africa have large sugar industrial

Currently, the sub-continent has four regional power pools; intra- and inter-regional power pools collaborations could help improve performance of the power sector through economies of scale, security of supply from a rich energy mix, and cost efficiency through shared energy

**2.5. Promoting sub-continental regional relations and trade in electricity**

storage and improved demand side response management.

concerns, as well as susceptibility to global fluctuations in fossil fuels prices.

be deployed at different levels from small to large systems.

micro-grids.

54 Energy Management for Sustainable Development

and a school.

sectors.

Regional power pools:


The foregoing discussion illustrates that widespread electricity access is achievable as demonstrated by the two countries, Seychelles and Mauritius, with 100% electricity access; it also points to the complexities associated with tackling the problem of electricity access; for instance, three countries have less than 10% access and 50 of the 70 countries recorded have less than 50% access.

**Figure 1.** A 100 W solar home system with kit of DC appliances from Mobisol (source: Mobisol, 2017).

and the heat produced is highly difficult to control. Traditional biomass fuels mainly refer to nonprocessed or semi-processed solid biomass used mainly for generating heat for cooking and for space heating usually in the form of a simple open fire or with basic wood and charcoal stoves. Traditional forms of biomass energy mainly include wood, wood waste, charcoal, animal waste and other agricultural residues. These fuels are characterised by low efficiency, poor handling and storage. **Table 5** shows woodfuel usage patterns in some sub-Saharan African countries.

These are traditional biomass-based fuels that have characteristics of improved efficiencies and/or sustainably produced. They include improved biomass cookstoves, charcoal, fuel bri-

Initial attempts at finding solutions to the inefficient traditional biomass fuels have been to integrate improved cookstoves into the traditional biomass fuels setting. In the absence of a formally agreed definition of an advanced cookstove, it for the most part implies a stove that cooks more effectively than the customary three-stone stove [1]. Potential benefits of adopting use of improved cookstoves are reductions in indoor air pollution resulting from improved combustion rates, and reduced cooking times and fuel requirements. Cookstoves that incorporate forced ventilation are capable of eliminating pollutants all together. Improved cookstove designs vary depending on the fuel being used; fuels used range from solid fuels such as fuelwood, charcoal, coal, fuel briquettes to liquid/gel fuel and gas fuels; as such local specific aspects need to be built into the stoves; in South Africa, for instance, there is wide spread use of coal for cooking and heating; thus necessitating research and development work on clean coal stoves such as those undertaken by the South Africa's council for scientific and industrial research (CSIR) and New Dawn Engineering's Mr. Crispin Pemberton-Pigott (website: www.pciaonline.org [19]). **Figure 3** shows some of the improved cookstoves exhibited at the people energy network **(**PEN) workshop 2009 at University of

**Percentage of rural, urban and total population** 

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**dependent on firewood**

**Rural (%) Urban (%) Rural (%) Urban (%) Total (%)**

Tanzania 76.9 23.1 95.6 26.7 77.4 Uganda 87.7 12.3 91.3 22.1 81.6 Senegal 59.3 40.7 89.1 15.9 54.7 Zambia 65.4 34.6 87.7 10.1 60.9 Malawi 85.6 14.4 98.5 69.0 94.3 Kenya 64.1 35.9 88.4 9.6 68.8

**3.1. Improved traditional fuels and technologies**

quettes and sustainable woodfuel.

*3.1.1. Improved cookstoves*

Johannesburg, South Africa.

**Country Percentage of total population living in rural and urban areas**

**Table 5.** Firewood usage in some sub-Saharan African countries [18].

**Figure 2.** A client showing an M-power solar product based on a 'pay-per-period' concept.

It is also noted that several countries are taking measures to deal with the problem of electricity access. Some of these measures include market liberalisation and development of appropriate legislations. Other initiatives are the promotion of sub-regional integration and development of innovative financing capital and client flexible repayment schemes.

#### **3. Clean and improved cooking technologies**

Clean cooking solutions or clean fuels and technologies for cooking refer to combinations of clean cooking fuels and compatible improved cooking equipment; as well as the infrastructure for fuel production and distribution. Clean fuels are fuels which during combustion emit little to no pollutants that are harmful to health and the environment. They include ethanol, biogas and jatropha oil; liquid petroleum gas (LPG) and kerosene may also be admissible. Improved cooking stoves are safer to use and have higher energy efficiencies thus consuming less fuel. Examples of equipment for the production of fuel include biogas digesters, ethanol distillation equipment and jatropha oil extracting machinery, whereas examples of distribution infrastructure embrace local selling points for bottled LPG and pump stations for kerosene. Solar cookers and electricity are also considered clean cooking solutions but have not attained wide spread usage in the sub-Saharan Africa region [4]. Current statistics show that 3.04 billion people are living without clean cooking globally. Around 600 million people residing in sub-Saharan Africa, 76% of the populace rely upon conventional solid biomass fuels as their principal energy resource [18].

Traditional fuels produce dangerous emissions which are a health hazard especially when used indoors and under poor ventilation; in addition, these fuels have very low energy efficiencies, and the heat produced is highly difficult to control. Traditional biomass fuels mainly refer to nonprocessed or semi-processed solid biomass used mainly for generating heat for cooking and for space heating usually in the form of a simple open fire or with basic wood and charcoal stoves. Traditional forms of biomass energy mainly include wood, wood waste, charcoal, animal waste and other agricultural residues. These fuels are characterised by low efficiency, poor handling and storage. **Table 5** shows woodfuel usage patterns in some sub-Saharan African countries.

#### **3.1. Improved traditional fuels and technologies**

These are traditional biomass-based fuels that have characteristics of improved efficiencies and/or sustainably produced. They include improved biomass cookstoves, charcoal, fuel briquettes and sustainable woodfuel.

#### *3.1.1. Improved cookstoves*

It is also noted that several countries are taking measures to deal with the problem of electricity access. Some of these measures include market liberalisation and development of appropriate legislations. Other initiatives are the promotion of sub-regional integration and

Clean cooking solutions or clean fuels and technologies for cooking refer to combinations of clean cooking fuels and compatible improved cooking equipment; as well as the infrastructure for fuel production and distribution. Clean fuels are fuels which during combustion emit little to no pollutants that are harmful to health and the environment. They include ethanol, biogas and jatropha oil; liquid petroleum gas (LPG) and kerosene may also be admissible. Improved cooking stoves are safer to use and have higher energy efficiencies thus consuming less fuel. Examples of equipment for the production of fuel include biogas digesters, ethanol distillation equipment and jatropha oil extracting machinery, whereas examples of distribution infrastructure embrace local selling points for bottled LPG and pump stations for kerosene. Solar cookers and electricity are also considered clean cooking solutions but have not attained wide spread usage in the sub-Saharan Africa region [4]. Current statistics show that 3.04 billion people are living without clean cooking globally. Around 600 million people residing in sub-Saharan Africa, 76% of the populace rely upon conventional solid biomass

Traditional fuels produce dangerous emissions which are a health hazard especially when used indoors and under poor ventilation; in addition, these fuels have very low energy efficiencies,

development of innovative financing capital and client flexible repayment schemes.

**Figure 2.** A client showing an M-power solar product based on a 'pay-per-period' concept.

**3. Clean and improved cooking technologies**

56 Energy Management for Sustainable Development

fuels as their principal energy resource [18].

Initial attempts at finding solutions to the inefficient traditional biomass fuels have been to integrate improved cookstoves into the traditional biomass fuels setting. In the absence of a formally agreed definition of an advanced cookstove, it for the most part implies a stove that cooks more effectively than the customary three-stone stove [1]. Potential benefits of adopting use of improved cookstoves are reductions in indoor air pollution resulting from improved combustion rates, and reduced cooking times and fuel requirements. Cookstoves that incorporate forced ventilation are capable of eliminating pollutants all together. Improved cookstove designs vary depending on the fuel being used; fuels used range from solid fuels such as fuelwood, charcoal, coal, fuel briquettes to liquid/gel fuel and gas fuels; as such local specific aspects need to be built into the stoves; in South Africa, for instance, there is wide spread use of coal for cooking and heating; thus necessitating research and development work on clean coal stoves such as those undertaken by the South Africa's council for scientific and industrial research (CSIR) and New Dawn Engineering's Mr. Crispin Pemberton-Pigott (website: www.pciaonline.org [19]). **Figure 3** shows some of the improved cookstoves exhibited at the people energy network **(**PEN) workshop 2009 at University of Johannesburg, South Africa.


**Table 5.** Firewood usage in some sub-Saharan African countries [18].

**Figure 3.** Pictures of combustors on exhibit at inaugural PEN workshop 2009. (source: Author).

#### *3.1.2. Charcoal*

Perhaps one fuel, among traditional biomass fuel types, requiring special mention is charcoal. It is a porous carbonaceous black solid fuel produced through the pyrolysis treatment of unprocessed solid biomass fuels. In sub-Saharan Africa, it is mainly produced through the slow burning of woodfuel in earth kilns and under restricted air flow. It emits fewer pollutants and has a higher energy density than firewood thus making is less bulk and relatively easier to transport. It has widespread usage especially among the low and middle income urbanites. It is, however, still not considered a clean fuel as it is inefficient and has levels of pollutants not ideal for household cooking. **Table 6** shows charcoal usage pattern in some sub-Saharan African countries.

environmental benefits. Both LPG and biogas are considered examples of gaseous clean fuels while ethanol and jatropha oil are examples of liquid clean fuels. The discussion also covers electricity and solar thermal for cooking, two clean cooking fuels that have not been successfully adopted in the region; kerosene is also discussed as it is considered relatively cleaner

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**Country Rural (%) Urban (%) Total (%)** Tanzania 3.6 52.9 16.7 Uganda 7.0 66.8 15.4 Senegal 1.8 12.1 6.6 Zambia 9.5 52.1 24.3 Malawi 0.4 15.5 2.5 Kenya 6.0 20.8 9.7

Kerosene is a fossil fuel produced as a distillate mainly from crude oil refineries. It is not considered a clean cooking fuel but considered a slight improvement on traditional biomass fuels in that its combustion does not produce as much harmful pollutants, and that it is easier to handle, transport, store and control during use. It is widely used in the urban areas of sub-Saharan Africa. It is predominantly used in two types of combustors, wick type and pres-

*Jatropha curcas* is a small bush-like plant. The oil from jatropha seeds has a wide range of useful applications. It is traditionally used for medicinal purposes and could find some ground in the pharmaceutical industries. It is widely used for biodiesel production. Further advancements in biofuel stoves technology are needed in order for jatropha to become attractive as an

Biogas is a clean gaseous fuel suitable for household cooking. It is a gaseous mixture rich in methane gas, produced through anaerobic digestion of biodegradable domestic waste, landfill/municipal waste or agricultural residues; it can also be used for lighting or at larger scales for electricity generation. However, its widespread uptake has been constrained by lack of reliable and adequate availability of feedstock such as in areas where farmers practice free range livestock keeping, as well as socio-cultural factors such as the acceptance of human

that the traditional fuels [20].

**Table 6.** Level of charcoal use for fuel in selected African nations [18].

*3.2.1. Kerosene*

surised cookstoves.

alternative to traditional biomass fuels.

*3.2.2. Jatropha oil*

*3.2.3. Biogas*

excreta as feedstock.

#### *3.1.3. Fuel briquettes*

Fuel briquettes are made from powdery or granular industrial waste such as coal dust, charcoal dust, saw dust and wood shavings, waste paper and pulp, or bagasse, and so on. This powdery waste material is normally mixed with a binder; this is followed by moulding under pressure. It is then either simply dried or subjected to carbonisation process that is exposed to intense heat under limited airflow. The environmental performance and combustion efficiency of fuel briquettes are highly dependent on the type and source of materials used in its manufacture.

#### *3.1.4. Sustainable woodfuel*

Woodfuel is cultivable. One idea that is normally considered is that of sustainable woodfuel, implying that the forest stock used as fuel is replenished through tree planting thus contributing carbon neutrality of the type of fuel.

#### **3.2. Modern fuels and technologies**

Modern cooking fuels are so referred and distinguished from traditional cooking fuels on account of ease of handle ability and controllability during use, higher energy efficiency and clean burning with little or no harmful emissions and as such possessing health and


**Table 6.** Level of charcoal use for fuel in selected African nations [18].

environmental benefits. Both LPG and biogas are considered examples of gaseous clean fuels while ethanol and jatropha oil are examples of liquid clean fuels. The discussion also covers electricity and solar thermal for cooking, two clean cooking fuels that have not been successfully adopted in the region; kerosene is also discussed as it is considered relatively cleaner that the traditional fuels [20].

#### *3.2.1. Kerosene*

*3.1.2. Charcoal*

sub-Saharan African countries.

58 Energy Management for Sustainable Development

*3.1.3. Fuel briquettes*

*3.1.4. Sustainable woodfuel*

ing carbon neutrality of the type of fuel.

**3.2. Modern fuels and technologies**

Perhaps one fuel, among traditional biomass fuel types, requiring special mention is charcoal. It is a porous carbonaceous black solid fuel produced through the pyrolysis treatment of unprocessed solid biomass fuels. In sub-Saharan Africa, it is mainly produced through the slow burning of woodfuel in earth kilns and under restricted air flow. It emits fewer pollutants and has a higher energy density than firewood thus making is less bulk and relatively easier to transport. It has widespread usage especially among the low and middle income urbanites. It is, however, still not considered a clean fuel as it is inefficient and has levels of pollutants not ideal for household cooking. **Table 6** shows charcoal usage pattern in some

**Figure 3.** Pictures of combustors on exhibit at inaugural PEN workshop 2009. (source: Author).

Fuel briquettes are made from powdery or granular industrial waste such as coal dust, charcoal dust, saw dust and wood shavings, waste paper and pulp, or bagasse, and so on. This powdery waste material is normally mixed with a binder; this is followed by moulding under pressure. It is then either simply dried or subjected to carbonisation process that is exposed to intense heat under limited airflow. The environmental performance and combustion efficiency of fuel briquettes are highly dependent on the type and source of materials used in its manufacture.

Woodfuel is cultivable. One idea that is normally considered is that of sustainable woodfuel, implying that the forest stock used as fuel is replenished through tree planting thus contribut-

Modern cooking fuels are so referred and distinguished from traditional cooking fuels on account of ease of handle ability and controllability during use, higher energy efficiency and clean burning with little or no harmful emissions and as such possessing health and Kerosene is a fossil fuel produced as a distillate mainly from crude oil refineries. It is not considered a clean cooking fuel but considered a slight improvement on traditional biomass fuels in that its combustion does not produce as much harmful pollutants, and that it is easier to handle, transport, store and control during use. It is widely used in the urban areas of sub-Saharan Africa. It is predominantly used in two types of combustors, wick type and pressurised cookstoves.

#### *3.2.2. Jatropha oil*

*Jatropha curcas* is a small bush-like plant. The oil from jatropha seeds has a wide range of useful applications. It is traditionally used for medicinal purposes and could find some ground in the pharmaceutical industries. It is widely used for biodiesel production. Further advancements in biofuel stoves technology are needed in order for jatropha to become attractive as an alternative to traditional biomass fuels.

#### *3.2.3. Biogas*

Biogas is a clean gaseous fuel suitable for household cooking. It is a gaseous mixture rich in methane gas, produced through anaerobic digestion of biodegradable domestic waste, landfill/municipal waste or agricultural residues; it can also be used for lighting or at larger scales for electricity generation. However, its widespread uptake has been constrained by lack of reliable and adequate availability of feedstock such as in areas where farmers practice free range livestock keeping, as well as socio-cultural factors such as the acceptance of human excreta as feedstock.

#### *3.2.4. Liquefied petroleum gas*

Liquefied petroleum gas (LPG) is a mixture of hydrocarbon gases mainly propane and butane. Despite being a fossil fuel, LPG has low carbon content and a high calorific value of around 50 kilojoules per gram; it burns clean and completely with a blue smokeless flame, producing fewer soot particulates. It is also safe, nontoxic and considered relatively affordable. It is potentially a better substitute for traditional biomass fuels.

#### *3.2.5. Ethanol and gelfuel*

Several countries in Africa are currently distilling ethanol which is mainly used as an additive in transportation fuels. Ethanol is very well suited as a household cooking fuel. Ethanol production is a matured technology, though there are several controversies surrounding the use of food crops (cassava, sorghum, maize, wheat, etc.) for biofuels. Further conversion of ethanol to gelfuel is thought to improve its handle ability and reduce risks associated with burning ethanol for household cooking.

#### *3.2.6. Electricity*

Ideally, electricity would be the fuel of choice. It is a clean and highly efficient energy suitable for cooking; but sub-Saharan Africa's grid network is so underdeveloped and the installed capacity so low, the majority of households cannot access electricity supply.

**Figure 4.** A collection of solar cookers at international conference on solar cooking, Kimberley-South Africa 27-27

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**Figure 5.** Preparing meals using SK12-Improved version of SK14 Kimberley-South Africa 27-27 November 2000 (source:

November 2000 (source: Author).

Author).

#### *3.2.7. Solar cooking*

Solar cookers use sunlight for cooking, drying and pasteurisation. Solar cooking offsets fuel costs, reduces demand for fuel or firewood, and improves air quality by reducing or removing a source of smoke.

The simplest type of solar cooker is the box cooker. A basic box cooker consists of an insulated container with a transparent lid. These cookers can be used effectively with partially overcast skies and will typically reach 50–100°C.

Concentrating solar cookers use reflectors to concentrate solar energy onto a cooking container. The most common reflector geometries are flat plate, disc and parabolic trough type. These designs cook faster at higher temperatures (up to 350°C) but require direct light to function properly.

An example of a concentrating technology is that known as the Scheffler reflector. This technology was first developed by Wolfgang Scheffler in 1986. A Scheffler reflector is a parabolic dish that uses single axis tracking to follow the Sun's daily course. These reflectors have a flexible reflective surface that is able to change its curvature to adjust to seasonal variations in the incident angle of sunlight. Scheffler reflectors have the advantage of having a fixed focal point which improves the ease of cooking and are able to reach temperatures of 450–650°C. The world's largest Scheffler reflector system is found in Abu Road, Rajasthan India and it is capable of cooking up to 35,000 meals a day. A number of pilot solar cooking systems have Towards a Sustainable Energy Future for Sub-Saharan Africa http://dx.doi.org/10.5772/intechopen.75953 61

*3.2.4. Liquefied petroleum gas*

60 Energy Management for Sustainable Development

*3.2.5. Ethanol and gelfuel*

*3.2.6. Electricity*

*3.2.7. Solar cooking*

ing a source of smoke.

function properly.

burning ethanol for household cooking.

skies and will typically reach 50–100°C.

potentially a better substitute for traditional biomass fuels.

Liquefied petroleum gas (LPG) is a mixture of hydrocarbon gases mainly propane and butane. Despite being a fossil fuel, LPG has low carbon content and a high calorific value of around 50 kilojoules per gram; it burns clean and completely with a blue smokeless flame, producing fewer soot particulates. It is also safe, nontoxic and considered relatively affordable. It is

Several countries in Africa are currently distilling ethanol which is mainly used as an additive in transportation fuels. Ethanol is very well suited as a household cooking fuel. Ethanol production is a matured technology, though there are several controversies surrounding the use of food crops (cassava, sorghum, maize, wheat, etc.) for biofuels. Further conversion of ethanol to gelfuel is thought to improve its handle ability and reduce risks associated with

Ideally, electricity would be the fuel of choice. It is a clean and highly efficient energy suitable for cooking; but sub-Saharan Africa's grid network is so underdeveloped and the installed

Solar cookers use sunlight for cooking, drying and pasteurisation. Solar cooking offsets fuel costs, reduces demand for fuel or firewood, and improves air quality by reducing or remov-

The simplest type of solar cooker is the box cooker. A basic box cooker consists of an insulated container with a transparent lid. These cookers can be used effectively with partially overcast

Concentrating solar cookers use reflectors to concentrate solar energy onto a cooking container. The most common reflector geometries are flat plate, disc and parabolic trough type. These designs cook faster at higher temperatures (up to 350°C) but require direct light to

An example of a concentrating technology is that known as the Scheffler reflector. This technology was first developed by Wolfgang Scheffler in 1986. A Scheffler reflector is a parabolic dish that uses single axis tracking to follow the Sun's daily course. These reflectors have a flexible reflective surface that is able to change its curvature to adjust to seasonal variations in the incident angle of sunlight. Scheffler reflectors have the advantage of having a fixed focal point which improves the ease of cooking and are able to reach temperatures of 450–650°C. The world's largest Scheffler reflector system is found in Abu Road, Rajasthan India and it is capable of cooking up to 35,000 meals a day. A number of pilot solar cooking systems have

capacity so low, the majority of households cannot access electricity supply.

**Figure 4.** A collection of solar cookers at international conference on solar cooking, Kimberley-South Africa 27-27 November 2000 (source: Author).

**Figure 5.** Preparing meals using SK12-Improved version of SK14 Kimberley-South Africa 27-27 November 2000 (source: Author).

been constructed in sub-Saharan Africa, such as those installed in Botswana and South Africa. A company called Rural Industries Innovation Centre (RIIC) made six installations of a 7m2 Scheffler cooker in Botswana in the late 1990s; 16 units of smaller version cooker, SK14, were also distributed to families in the mining town of Jwaneng in Botswana [21]. **Figures 4** and **5** show solar cookers on exhibition and in-use, respectively.

• Advanced biofuels, also referred to as second generation biofuels, are to a larger extend still at developmental stage, and are mainly produced from non-edible biomass such as cellulose (plant stalks), non-food crops such as jatropha and tobacco, and bio-waste or by-products of food industries such as molasses from sugar processing. Third generation (biofuels from algae) and fourth generation (microbial biotechnology) are still at conceptual stages.

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Bioethanol and biodiesel are the most common types of biofuels. The use of bioethanol and biodiesel as transport fuels is very attractive due to reduction of combustion emissions, accessibility from renewable resources, and biodegradability [12, 18, 26]. Over the past decade, the production of bioethanol and biodiesel has been extensively investigated worldwide and their production methods have proved successful in the USA and Brazil [4, 18, 27]. However, in sub-Saharan Africa (SSA), large-scale industrial production and commercialization are stagnant. This section provides a brief review on the potential for biofuels as a transportation

Access to reliable and affordable transportation infrastructure and services, although, and probably justifiably so, not considered as critical as access to electricity and/or clean cooking technologies, has a greater bearing on any meaningful developmental initiatives, including on the development of infrastructure for adequate provision of electricity and clean cooking. Access to affordable and reliable 'fuel' cannot be divorced from transportation and in turn to socio-economic development. Many countries, in SSA, face insecure fuel supplies due to fluctuating fossil fuel prices, inadequate distribution networks, civil wars, as well as lack of foreign currency. A well-developed biofuels industry will contribute to solving the transportation problem; in addition a number of spin-off benefits to be gained from a well-developed

• ensuring availability of affordable fuel to rural communities for household electrification,

• stabilising the sub-continent's energy supply and diversifying its fuel options and reducing

• creating opportunities for exports of biofuel feedstocks to industrialised countries by

• providing many employment opportunities to African people and boost the continent's

• assisting industrialised sub-Saharan Africa countries, such as Egypt, Nigeria, and South Africa that are among the leading carbon emitters in the continent in mitigating carbon

In closing the discussion under this section, it suffices to point out that sub-Saharan Africa presents greater potential for development of a strong biofuel industry. There are several ongoing and commenced initiatives regarding biofuels development in sub-Saharan Africa.

fuel in SSA [4].

biofuels industry will include:

African farmers;

economy; and

emissions.

powering farming machinery, and transportation;

the burden on oil importing countries;

**Table 7** shows some of such initiatives:

From the preceding discussion, it is evident that a diversity of improved and clean cooking technologies is available in varying formats and mixes for different parts of the subcontinent. Barriers to effective adoption of these technologies are quite wide-ranging and include lack of technological support (localised technology manufacture and maintenance, localised fuels production and distribution networks), higher costs and lack of flexible purchase and repayment schemes, as well as lack of information and awareness. Some efforts are being undertaken to address these barriers; for instance, the Global Alliance for Clean Cookstoves, an initiative hosted by the UN Foundation in support of Sustainable Energy for All, a public-private partnership that seeks to save lives, improve livelihoods, empower women, and protect the environment by creating a thriving global market for clean and efficient household cooking solutions; the alliance has a goal of enabling an additional 100 million homes to adopt clean and efficient stoves and fuels by 2020 (website: www. unfoundation.org [22]).

#### **4. Biofuels for transportation**

Transportation energy technologies refer to all forms of energy and corresponding infrastructure for facilitation of mobility of vehicular objects. As such they include fossil based fuels technologies, biofuel-based technologies, electricity based technologies and nuclear energybased propulsion technologies. Clean transportation fuels technologies refer to various fueltechnology combinations in the transport sector characterised by reduced or no greenhouse gas (GHG) emissions. Electrically powered transportation in the form of electric trains and ships has been in existence for centuries, from the 1830s when the Scottish, Robert Anderson invented the first crude electric carriage to the (website: www.pbs.org [23]) to the futuristic notion of all-cars-electric by 2040 (website: news.nationalgeographic.com [24]); numerous efforts for electric automobiles are currently under consideration or development by several technology and manufacturing companies. Efforts for replacement of fossil fuels by biofuels have also been widely explored.

Biofuels are liquid and gaseous fuels produced from biomass, used in the transport sector. Biofuels can be classified into conventional and advanced forms [25]:

• Conventional biofuels (also referred to as first generation) are well-established technologies that are, currently, under commercial production; they include ethanol (processed from corn, sugarcane, wheat, sugarbeet, cassava, etc.), biodiesel (from rapeseed, soybean, oil palm, sunflower, etc.) and biogas (produced via anaerobic digestion of energy crops such as maize silage and waste such as bio-waste including manure).

• Advanced biofuels, also referred to as second generation biofuels, are to a larger extend still at developmental stage, and are mainly produced from non-edible biomass such as cellulose (plant stalks), non-food crops such as jatropha and tobacco, and bio-waste or by-products of food industries such as molasses from sugar processing. Third generation (biofuels from algae) and fourth generation (microbial biotechnology) are still at conceptual stages.

been constructed in sub-Saharan Africa, such as those installed in Botswana and South Africa. A company called Rural Industries Innovation Centre (RIIC) made six installations of a 7m2 Scheffler cooker in Botswana in the late 1990s; 16 units of smaller version cooker, SK14, were also distributed to families in the mining town of Jwaneng in Botswana [21]. **Figures 4** and **5**

From the preceding discussion, it is evident that a diversity of improved and clean cooking technologies is available in varying formats and mixes for different parts of the subcontinent. Barriers to effective adoption of these technologies are quite wide-ranging and include lack of technological support (localised technology manufacture and maintenance, localised fuels production and distribution networks), higher costs and lack of flexible purchase and repayment schemes, as well as lack of information and awareness. Some efforts are being undertaken to address these barriers; for instance, the Global Alliance for Clean Cookstoves, an initiative hosted by the UN Foundation in support of Sustainable Energy for All, a public-private partnership that seeks to save lives, improve livelihoods, empower women, and protect the environment by creating a thriving global market for clean and efficient household cooking solutions; the alliance has a goal of enabling an additional 100 million homes to adopt clean and efficient stoves and fuels by 2020 (website: www.

Transportation energy technologies refer to all forms of energy and corresponding infrastructure for facilitation of mobility of vehicular objects. As such they include fossil based fuels technologies, biofuel-based technologies, electricity based technologies and nuclear energybased propulsion technologies. Clean transportation fuels technologies refer to various fueltechnology combinations in the transport sector characterised by reduced or no greenhouse gas (GHG) emissions. Electrically powered transportation in the form of electric trains and ships has been in existence for centuries, from the 1830s when the Scottish, Robert Anderson invented the first crude electric carriage to the (website: www.pbs.org [23]) to the futuristic notion of all-cars-electric by 2040 (website: news.nationalgeographic.com [24]); numerous efforts for electric automobiles are currently under consideration or development by several technology and manufacturing companies. Efforts for replacement of fossil fuels by biofuels

Biofuels are liquid and gaseous fuels produced from biomass, used in the transport sector.

• Conventional biofuels (also referred to as first generation) are well-established technologies that are, currently, under commercial production; they include ethanol (processed from corn, sugarcane, wheat, sugarbeet, cassava, etc.), biodiesel (from rapeseed, soybean, oil palm, sunflower, etc.) and biogas (produced via anaerobic digestion of energy crops

Biofuels can be classified into conventional and advanced forms [25]:

such as maize silage and waste such as bio-waste including manure).

show solar cookers on exhibition and in-use, respectively.

unfoundation.org [22]).

**4. Biofuels for transportation**

62 Energy Management for Sustainable Development

have also been widely explored.

Bioethanol and biodiesel are the most common types of biofuels. The use of bioethanol and biodiesel as transport fuels is very attractive due to reduction of combustion emissions, accessibility from renewable resources, and biodegradability [12, 18, 26]. Over the past decade, the production of bioethanol and biodiesel has been extensively investigated worldwide and their production methods have proved successful in the USA and Brazil [4, 18, 27]. However, in sub-Saharan Africa (SSA), large-scale industrial production and commercialization are stagnant. This section provides a brief review on the potential for biofuels as a transportation fuel in SSA [4].

Access to reliable and affordable transportation infrastructure and services, although, and probably justifiably so, not considered as critical as access to electricity and/or clean cooking technologies, has a greater bearing on any meaningful developmental initiatives, including on the development of infrastructure for adequate provision of electricity and clean cooking. Access to affordable and reliable 'fuel' cannot be divorced from transportation and in turn to socio-economic development. Many countries, in SSA, face insecure fuel supplies due to fluctuating fossil fuel prices, inadequate distribution networks, civil wars, as well as lack of foreign currency. A well-developed biofuels industry will contribute to solving the transportation problem; in addition a number of spin-off benefits to be gained from a well-developed biofuels industry will include:


In closing the discussion under this section, it suffices to point out that sub-Saharan Africa presents greater potential for development of a strong biofuel industry. There are several ongoing and commenced initiatives regarding biofuels development in sub-Saharan Africa. **Table 7** shows some of such initiatives:


More than half of all Africans have no access to electricity; regrettably, this also represents more than half of all people without electricity globally. The traditional electricity system in most countries evolved as large, centralised, fossil fuel or large hydropower systems operating on a monopolistic, state-owned, vertically-integrated model characterised by inefficient management and poor performance. Some of the efforts aimed at redressing this situation include liberalisation of the electricity market, development of market and legal frameworks, streamlining the performance of state-owned electricity utilities, promoting sub-regional electricity trade, as well as development of innovative financing and revenue repayment and

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Improved traditional cooking technologies include improved cookstoves and higher energycontent traditional fuel forms. These, generally, do not meet the requirements clean, modern cooking technologies. Modern fuels and cooking technologies include cleaner fossil fuels (kerosene and LPG), biofuels (jatropha oil, biogas and ethanol), and electricity and solar cooking. Lack of awareness, lack of technological support and higher costs are the main barriers to

Biofuels for transportation are at different developmental stages with bioethanol and biodiesel being the most advanced and commercialised globally. In sub-Saharan Africa, however, the biofuel industry remains largely underdeveloped, although isolated significant developments have been recorded. Substantial potential for the biofuel industry is substantial

• There is no 'One-Size-Fits-All' or 'Cut-and-Paste' solution to the problems of energy access and poverty in Sub-Saharan Africa; each scenario requires a unique solution apt to its details; that is, the stakeholders (users included), available energy resources, level of socio-

• Lessons can be learnt from success stories such as the 100% electricity access in Mauritius and Seychelles, LPG roll out program in Senegal (website: stoves.bioenergylists.org [29]),

• Notwithstanding the merits of a competitive and profitable energy model, it remains governments' obligation to develop systems that ensure universal modern and sustainable

Free Basic Electricity (FBE) scheme in South Africa (website: flash.co.za [30]).

Department of Industrial Design and Technology, University of Botswana, Gaborone,

the widespread adoption of modern cooking technologies.

As an ending to this chapter, it worth noting the following:

economic and industrial development, and so on.

energy access is availed to those that cannot afford.

Address all correspondence to: situmbeko@mopipi.ub.bw

collection mechanisms.

and so are the potential benefits.

**Author details**

Botswana

Shadreck Mubiana Situmbeko

**Table 7.** Biofuel initiative in sub-Saharan Africa [28].

#### **5. Conclusion and a way forward**

Lack of access to clean and modern energy, including energy poverty, is quite prevalent in sub-Saharan Africa, with the majority of the population relying on traditional biomass fuels. Traditional biomass fuels are associated with low energy efficiencies, difficult to control and are a health hazard. Electricity supply and connectivity is far outstripped by demand and is beyond the means of the majority poor people. It is widely acknowledged that access to affordable, reliable, sustainable and modern energy for all is a common necessity for socio-economic development as espoused by the sustainable development goal number seven (SGD 7).

More than half of all Africans have no access to electricity; regrettably, this also represents more than half of all people without electricity globally. The traditional electricity system in most countries evolved as large, centralised, fossil fuel or large hydropower systems operating on a monopolistic, state-owned, vertically-integrated model characterised by inefficient management and poor performance. Some of the efforts aimed at redressing this situation include liberalisation of the electricity market, development of market and legal frameworks, streamlining the performance of state-owned electricity utilities, promoting sub-regional electricity trade, as well as development of innovative financing and revenue repayment and collection mechanisms.

Improved traditional cooking technologies include improved cookstoves and higher energycontent traditional fuel forms. These, generally, do not meet the requirements clean, modern cooking technologies. Modern fuels and cooking technologies include cleaner fossil fuels (kerosene and LPG), biofuels (jatropha oil, biogas and ethanol), and electricity and solar cooking. Lack of awareness, lack of technological support and higher costs are the main barriers to the widespread adoption of modern cooking technologies.

Biofuels for transportation are at different developmental stages with bioethanol and biodiesel being the most advanced and commercialised globally. In sub-Saharan Africa, however, the biofuel industry remains largely underdeveloped, although isolated significant developments have been recorded. Substantial potential for the biofuel industry is substantial and so are the potential benefits.

As an ending to this chapter, it worth noting the following:


#### **Author details**

**5. Conclusion and a way forward**

**Table 7.** Biofuel initiative in sub-Saharan Africa [28].

production of biodiesel

**Country Biofuel initiatives**

64 Energy Management for Sustainable Development

village.

number seven (SGD 7).

Lack of access to clean and modern energy, including energy poverty, is quite prevalent in sub-Saharan Africa, with the majority of the population relying on traditional biomass fuels. Traditional biomass fuels are associated with low energy efficiencies, difficult to control and are a health hazard. Electricity supply and connectivity is far outstripped by demand and is beyond the means of the majority poor people. It is widely acknowledged that access to affordable, reliable, sustainable and modern energy for all is a common necessity for socio-economic development as espoused by the sustainable development goal

Burkina Faso A Dutch funded government project, Fondation Fasobiocarburant (FFB) has promoted planting

Ghana Ghana's bioenergy policy aims at attaining 20% blend of biofuels with petroleum fuels by 2030.

Malawi Bioethanol for fuel is produced by two captive distilleries at Dwangwa and Nchalo sugar estates

engaged to grow over ten million jatropha trees under a 5 years project. Mozambique Mozambique Government has implemented a 5–10% (v/v) blend for bioethanol with petroleum.

from jatropha oil seeds by two companies, Petromoc and SunBiofuels. Nigeria Five big companies distil about 134 million litres of ethanol every year in Nigeria. Biodiesel is

in Cross River State, and the Shashwat Jatropha in Kebbi State. South Africa Government plans to reduce fossil fuels imports by substituting it with biofuels. It has thus

Tanzania Seven companies and NGOs include Diligent Tanzania Ltd., Kakute Ltd., ARI-Monduli,

the mix for clean fuels for transportation.

Mali an NGO, Mali-Folkecenter Nyetaa has developed an innovative project whereby the local

Initial production of ethanol has been from cassava and sugarcane. Other feedstocks considered

farmers of Garalo village, in the vicinity of the centre, have grouped themselves into cooperatives for growing of jatropha, intercropped with other cereals; the jatropha seeds are pressed into oil that is supplied to the centre; in turn the centre operates a 300 kW installed capacity plant with a 15 km mini-grid supplying electricity to the 10,000 inhabitants of the

at annual capacities of 15–20 million litres and 12 million litres, respectively. The fuel grade bioethanol is blended at 20% (v/v) with petrol by the petroleum industry. Local farmers are also involved in the sugarcane production under out-growers schemes; local farmers have also been

Ndzilo plant delivers close to two million litres of ethanol from cassava. Biodiesel is produced

produced by companies such as Biodiesel Nigeria Limited in Lagos State, Aura Bio-Corporation

passed legislation that requires a mandatory 2% blend for all petrol and diesel products as of 2015; with plans to increase the blend proportion as the biofuels industry grows. A few companies have been issued licences for the production of bioethanol and biodiesel. Biomethane, bioelectricity and biohydrogen are also under consideration for incorporation in

MVIWATA, Kikuletwa Farm, Jatropha Products Tanzania Limited, and Tanzanian Traditional Energy Development and Environment Organisation are involved in jatropha tree planting and

of 70,000 trees of jatropha oil seeds in 2009.

are maize and jatropha oil seeds.

Shadreck Mubiana Situmbeko

Address all correspondence to: situmbeko@mopipi.ub.bw

Department of Industrial Design and Technology, University of Botswana, Gaborone, Botswana

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[21] Situmbeko SM.Solar Thermal Applications, Solar Energy Workshop. Gaborone, Botswana:

[22] Available from: http://www.unfoundation.org/what-we-do/issues/energy-and-climate/

[23] Available from: http://www.pbs.org/now/shows/223/electric-car-timeline.html (Accessed:

[24] Available from: https://news.nationalgeographic.com/2017/09/electric-cars-replace-gas-

[25] IEA/OECD. Renewable Energy in Transport. 2013. https://www.iea.org/media/training/

[26] Lucas PL et al. Towards Universal Electricity Access in Sub-Saharan Africa: A Quantitative Analysis of Technology and Investment Requirements. PBL Netherlands Environmental

[27] Avila N, et al. The Energy Challenge in Sub-Saharan Africa: A Guide for Advocates and Policy Makers: Part 1: Generating Energy for Sustainable and Equitable Development. 2017. Oxfam Research Backgrounder series: https://www.oxfamamerica.org/static/media/

University of Botswana; 2000, December 13, 2000. pp. 1-7

clean-energy-de (Accessed: November 08, 2017/)

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presentations/Day\_2\_Renewables\_5\_Transport.pdf

Assessment Agency: The Hague; 2017

files/oxfam-RAEL-energySSA-pt1.pdf

[15] Available from: http://www.m-kopa.com/ (Accessed: February 08, 2018)

in-sub-saharan-africa/ (Accessed: February 08, 2018)

for-africa.html (Accessed: February 08, 2018)

University of Botswana; 2017

2010. pp. 1-9

February 08, 2018)

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66 Energy Management for Sustainable Development

pt2.pdf

Change, Paris; 2015

2015

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jsbs.2017.73008

by Leigh Tesfatsion; 2011

UN-ENERGY/Africa publication to CSD15

2015. sustainabledevelopment.un.org

[1] Morrissey J. The energy challenge in sub-Saharan Africa: A guide for advocates and policy makers: Part 2: Addressing energy poverty. Oxfam Research Backgrounder series (2017). 2017: https://www.oxfamamerica.org/static/media/files/oxfam-RAEL-energySSA-

[2] Pre Dakar Position Paper March. Strategies to Scale-up Renewable Energy Market in Africa - A position paper developed by NGOs and other stakeholders for the International Conference on Renewable Energy in Africa, 16-18 April 2008, Dakar, Senegal; 2008 [3] Showers KB. Electrifying Africa: An environmental history with policy implications. Geografiska Annaler. Series B, Human Geography. 2011;**93,3**:193-221. Published by: Taylor & Francis, Ltd. on behalf of the Swedish Society for Anthropology and Geography,

[4] Sustainable Energy for All. Understanding the Landscape: Tracking Finance for Electricity and Clean Cooking access in High-Impact Countries, ©2017 Sustainable Energy for All, Washington, DC Office, 1750 Pennsylvania Ave NW, Suite 300, Washington, DC 20006,

[5] UNFCCC. Adoption of the Paris Agreement - Proposal by the President - Draft decision -/CP.21. FCCC/CP/2015/L.9/Rev.1. United Nations Framework Convention on Climate

[6] UN. Transforming our World: The 2030 Agenda for Sustainable Development. New York;

[7] African Union Commission. Agenda 2063: The Africa we Want. Ethiopia: Addis Ababa;

[8] Flemming P et al. Energizing Finance: Scaling and Refining Finance in Countries with Large Energy Access Gaps, 2017 Sustainable Energy for All, Washington, DC Office,

[9] Greenpeace Report. Decentralising Power: An Energy Revolution for the 21st Century. 2015. Accessed at http://www.greenpeace.org.uk/MultimediaFiles/Live/FullReport/7154.

[10] Dionysio A. Lecture Slides by Daniel Kirschen for Kirschen/Strbac Chapter 1, with edits

[11] Situmbeko SM. Decentralised energy systems and associated policy mechanisms—A review of Africa. Journal of Sustainable Bioenergy Systems. 2017;**7**:98-116. DOI: 10.4236/

[12] UN-ENERGY/Africa. A UN collaboration mechanism and UN sub-cluster on energy in support of NEPAD*;* Energy for Sustainable Development: Policy Options for Africa;

1750 Pennsylvania Ave NW, Suite 300,Washington, DC 20006, USA; 2017

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USA, Telephone: +1 202 390 0078, Website: SEforALL.org. 2017


[28] Sekoai PT, Yoro KO. Review Biofuel Development Initiatives in Sub-Saharan Africa: Opportunities and Challenges, Sustainable Energy & Environment Research Unit, School of Chemical and Metallurgical Engineering, Faculty of Engineering and the Built Environment, University of the Witwatersrand, Private Bag 3,Wits, Johannesburg 2050, South Africa; 1230119@students.wits.ac.za; Climate Published: 22 June 2016; 2016

**Chapter 4**

**Provisional chapter**

**Electric Vehicle Promotion Policy in Taiwan**

**Electric Vehicle Promotion Policy in Taiwan**

appropriate reference for the creation of EV industry clusters.

**Keywords:** EV, electric vehicle, EV industry, carbon-reducing policy, green

Because China's economy and other developing countries are experiencing rapid development, the automotive industry has become one of the most quickly developing industries and is a major source of air pollution. To improve air quality, numerous governments of developed countries have established relevant laws and policies [1] to decrease the number of active old vehicles and actively develop the low-pollution or low-emission automotive industry through subsidization. McElroy [2] argued that subsidies are a constructive option for the development of relevant industries and for reducing our dependence on traditional

DOI: 10.5772/intechopen.74019

The developmental patterns of automotive industries in developing countries differ from those in developed countries. Nations should actively and effectively develop an electric vehicle (EV) industry to reduce carbon dioxide emissions and energy consumption, especially during this period of increasing fuel prices and emphasis on saving energy and reducing carbon emissions. From interdisciplinary perspectives, this study analyzed the promotion methods of the EV industry in Taiwan. In addition, we suggest that the Taiwan government should use its advantages in Central Taiwan to assemble mature suppliers of precision machinery in this area to facilitate long-term research and development for the EV industry. This study provides an empirical experience for emerging cities in developing countries regarding the development of the EV industry and is an

> © 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

© 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use,

distribution, and reproduction in any medium, provided the original work is properly cited.

Additional information is available at the end of the chapter

Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.74019

Li-Min Cheng

Li-Min Cheng

**Abstract**

transportation

**1. Introduction**

energy sources.


#### **Electric Vehicle Promotion Policy in Taiwan Electric Vehicle Promotion Policy in Taiwan**

DOI: 10.5772/intechopen.74019

#### Li-Min Cheng Li-Min Cheng

[28] Sekoai PT, Yoro KO. Review Biofuel Development Initiatives in Sub-Saharan Africa: Opportunities and Challenges, Sustainable Energy & Environment Research Unit, School of Chemical and Metallurgical Engineering, Faculty of Engineering and the Built Environment, University of the Witwatersrand, Private Bag 3,Wits, Johannesburg 2050, South Africa; 1230119@students.wits.ac.za; Climate Published: 22 June 2016; 2016

68 Energy Management for Sustainable Development

[29] Available from: http://stoves.bioenergylists.org/endatmlpg (Accessed: February 08, 2018)

[30] Available from: http://flash.co.za/free-basic-electricity/ (Accessed: February 08, 2018)

Additional information is available at the end of the chapter Additional information is available at the end of the chapter

http://dx.doi.org/10.5772/intechopen.74019

**Abstract**

The developmental patterns of automotive industries in developing countries differ from those in developed countries. Nations should actively and effectively develop an electric vehicle (EV) industry to reduce carbon dioxide emissions and energy consumption, especially during this period of increasing fuel prices and emphasis on saving energy and reducing carbon emissions. From interdisciplinary perspectives, this study analyzed the promotion methods of the EV industry in Taiwan. In addition, we suggest that the Taiwan government should use its advantages in Central Taiwan to assemble mature suppliers of precision machinery in this area to facilitate long-term research and development for the EV industry. This study provides an empirical experience for emerging cities in developing countries regarding the development of the EV industry and is an appropriate reference for the creation of EV industry clusters.

**Keywords:** EV, electric vehicle, EV industry, carbon-reducing policy, green transportation

#### **1. Introduction**

Because China's economy and other developing countries are experiencing rapid development, the automotive industry has become one of the most quickly developing industries and is a major source of air pollution. To improve air quality, numerous governments of developed countries have established relevant laws and policies [1] to decrease the number of active old vehicles and actively develop the low-pollution or low-emission automotive industry through subsidization. McElroy [2] argued that subsidies are a constructive option for the development of relevant industries and for reducing our dependence on traditional energy sources.

© 2016 The Author(s). Licensee InTech. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited. © 2018 The Author(s). Licensee IntechOpen. This chapter is distributed under the terms of the Creative Commons Attribution License (http://creativecommons.org/licenses/by/3.0), which permits unrestricted use, distribution, and reproduction in any medium, provided the original work is properly cited.

Traditional studies regarding gaseous pollutants from automobile emissions have focused on microcosmic or technical discussions, such as the improvement of internal combustion engine efficiency (e.g., see [3]). Macroscopic perspectives on industrial development are scant, as are comprehensive studies on the EV industry. However, because they are constrained by financial and market factors, developing countries should identify a novel pattern for developing automotive industries that differs from those of developed countries and should actively and efficiently develop EV industries to reduce carbon dioxide emissions and energy consumption. These are particularly pressing issues because of increasing fuel prices and the current emphasis on saving energy and reducing carbon emissions.

development environment. To achieve their various goals, governments should adopt dif-

Electric Vehicle Promotion Policy in Taiwan http://dx.doi.org/10.5772/intechopen.74019 71

Therefore, governments should implement the establishment of EV industry clusters using the above policy facets. Porter [5] provides the following definition of the "clustering effect": If the upstream and downstream of a specific industry tend to correlate in terms of regions, they will progressively evolve into a structure of economic benefit that elevates mutual efficiency and professionalism. Consequently, a cluster of enterprises dramatically enhances the overall competiveness of industries through self-development and flexible adjustment using internal forces. Kotval and Mullin [6] indicated that clusters have become planning behaviors conducted and adopted by nations, governments, and local authorities. Many nations include industry clusters as a national policy to enhance their international competitiveness. For example, the U.K. promotes the information and technology industry in the Thames Valley, develops engineering-related clusters in the Northeast, promotes aviation industry clusters in Bristol, and develops biochemical technology near Cambridge [7]. In addition, numerous other areas have had similar success in the establishment of clusters [8, 9], such as the most

Furthermore, in terms of law and technology law, legislation regarding energy laws and regulations has gained increasing attention from developed countries. Specifically, during the energy crisis in the 1970s, governments in developed countries exercised peak control of energy-based commercial activities [10]. Elliott [11] cited the UK as an example, which amended its Building Regulations in 2004 because of carbon trading concepts. Bührke [12] approved of the German federal government's action of reducing 40% of Germany's carbon dioxide emissions by enacting the Renewable Energy Sources Act (EEG). In 1992, the United States passed the Energy Policy Act (EP Act 92), which has played a critical role in the restructuring of the power and electricity industry. The act was amended in 2005 (EP Act 2005) to reinforce the influence of the Federal Energy Regulatory Commission (FERC) in the power and electricity industry. The American Recovery and Reinvestment Act (ARRA) of 2009 perpetuated the strength of the federal government in energy and power policies and regulations. Therefore, powerful interventions from the government and legislative support are necessary for energy and power

Preparations for developing EVs, such as regulatory administration that can limit traditional vehicles, or supply administration that rewards and subsidizes the EV industry, cannot be ignored. Relevant departments must conduct a regulatory impact analysis (RIA) [13–15] to judiciously plan the comprehensiveness of legislation for regulatory and supply administration. Similar to business impact analysis (BIA), RIA requires that administrative sections or agencies clearly specify regulative backgrounds (e.g., the overall economic environment and market structure of industries), controversies regarding acts and laws caused by social demands and conflicts relevant to existing laws, expected efficacy or function of acts, and the relationships among issues during the legislative operations process. These sections and agencies should also propose and draft plausible measures (including concrete regulative contents for all possible legal and non-legal alternatives, and clarification of their necessity) and analyze and evaluate the related efficiency and costs influenced by people, enterprises,

ferent methods and means to execute their policies.

acclaimed example of a successful cluster: Silicon Valley in California.

policies and regulations [10].

Taiwan government eagerly promotes the low-carbon policy in recent years. Since being selected by the Environmental Protection Administration (Executive Yuan) of Taiwan as a low-carbon model city, the Taichung city government issued the "Regulations of task force for the promotion of low-carbon city, Taichung city government" on October 24, 2011. This study uses that experience to explain the EV promotion policy in Taiwan.

To foster and initiate low-carbon industries, the city government founded the "economic development and agriculture team" within the promotion task force to evaluate related carbon-reducing policies and plans for the development of Taichung industries. The results of these measures led to Taichung's emergence as the best city in Taiwan. Regarding the experience pattern or model of Taichung's development, this study examined Taichung's efforts in assisting the EV industry and in transforming local industries into low-carbon industries from interdisciplinary perspectives. In addition, this study also evaluated and analyzed the feasibility of future plans. The developmental patterns that we examined can be used as a reference for industrial planning by similar cities in developing countries and can contribute to creating a low-carbon and green industry environment.

#### **2. Literature review**

Regarding the policies adopted by governments for industrial development, Rothwell and Zegveld [4] suggested that innovation in emerging technologies and industries can facilitate national economic growth. From the perspective of industry, policies are a practical means for governments to become involved in the technological development system. Governmental innovation policies should include technological and industrial policies, and, according to their influence or effects on technological activities, policies are categorized as bellow:


development environment. To achieve their various goals, governments should adopt different methods and means to execute their policies.

Traditional studies regarding gaseous pollutants from automobile emissions have focused on microcosmic or technical discussions, such as the improvement of internal combustion engine efficiency (e.g., see [3]). Macroscopic perspectives on industrial development are scant, as are comprehensive studies on the EV industry. However, because they are constrained by financial and market factors, developing countries should identify a novel pattern for developing automotive industries that differs from those of developed countries and should actively and efficiently develop EV industries to reduce carbon dioxide emissions and energy consumption. These are particularly pressing issues because of increasing fuel prices and the current

Taiwan government eagerly promotes the low-carbon policy in recent years. Since being selected by the Environmental Protection Administration (Executive Yuan) of Taiwan as a low-carbon model city, the Taichung city government issued the "Regulations of task force for the promotion of low-carbon city, Taichung city government" on October 24, 2011. This study

To foster and initiate low-carbon industries, the city government founded the "economic development and agriculture team" within the promotion task force to evaluate related carbon-reducing policies and plans for the development of Taichung industries. The results of these measures led to Taichung's emergence as the best city in Taiwan. Regarding the experience pattern or model of Taichung's development, this study examined Taichung's efforts in assisting the EV industry and in transforming local industries into low-carbon industries from interdisciplinary perspectives. In addition, this study also evaluated and analyzed the feasibility of future plans. The developmental patterns that we examined can be used as a reference for industrial planning by similar cities in developing countries and can contribute

Regarding the policies adopted by governments for industrial development, Rothwell and Zegveld [4] suggested that innovation in emerging technologies and industries can facilitate national economic growth. From the perspective of industry, policies are a practical means for governments to become involved in the technological development system. Governmental innovation policies should include technological and industrial policies, and, according to

• Supply policies: manpower, finance, public services, and technical support are the determi-

• Demand policies: governments establish market-centered policies that provide demands for technology and, thereby, affect technology development, such as purchases and con-

• Environmental policies: governments draw up related laws, including industry districts or parks, taxes, and patents, that regulate the economy and indirectly affect the technology

their influence or effects on technological activities, policies are categorized as bellow:

nants of a government's direct involvement in technology supply.

tracts regarding technological products by central or local governments.

emphasis on saving energy and reducing carbon emissions.

70 Energy Management for Sustainable Development

to creating a low-carbon and green industry environment.

**2. Literature review**

uses that experience to explain the EV promotion policy in Taiwan.

Therefore, governments should implement the establishment of EV industry clusters using the above policy facets. Porter [5] provides the following definition of the "clustering effect": If the upstream and downstream of a specific industry tend to correlate in terms of regions, they will progressively evolve into a structure of economic benefit that elevates mutual efficiency and professionalism. Consequently, a cluster of enterprises dramatically enhances the overall competiveness of industries through self-development and flexible adjustment using internal forces. Kotval and Mullin [6] indicated that clusters have become planning behaviors conducted and adopted by nations, governments, and local authorities. Many nations include industry clusters as a national policy to enhance their international competitiveness. For example, the U.K. promotes the information and technology industry in the Thames Valley, develops engineering-related clusters in the Northeast, promotes aviation industry clusters in Bristol, and develops biochemical technology near Cambridge [7]. In addition, numerous other areas have had similar success in the establishment of clusters [8, 9], such as the most acclaimed example of a successful cluster: Silicon Valley in California.

Furthermore, in terms of law and technology law, legislation regarding energy laws and regulations has gained increasing attention from developed countries. Specifically, during the energy crisis in the 1970s, governments in developed countries exercised peak control of energy-based commercial activities [10]. Elliott [11] cited the UK as an example, which amended its Building Regulations in 2004 because of carbon trading concepts. Bührke [12] approved of the German federal government's action of reducing 40% of Germany's carbon dioxide emissions by enacting the Renewable Energy Sources Act (EEG). In 1992, the United States passed the Energy Policy Act (EP Act 92), which has played a critical role in the restructuring of the power and electricity industry. The act was amended in 2005 (EP Act 2005) to reinforce the influence of the Federal Energy Regulatory Commission (FERC) in the power and electricity industry. The American Recovery and Reinvestment Act (ARRA) of 2009 perpetuated the strength of the federal government in energy and power policies and regulations. Therefore, powerful interventions from the government and legislative support are necessary for energy and power policies and regulations [10].

Preparations for developing EVs, such as regulatory administration that can limit traditional vehicles, or supply administration that rewards and subsidizes the EV industry, cannot be ignored. Relevant departments must conduct a regulatory impact analysis (RIA) [13–15] to judiciously plan the comprehensiveness of legislation for regulatory and supply administration. Similar to business impact analysis (BIA), RIA requires that administrative sections or agencies clearly specify regulative backgrounds (e.g., the overall economic environment and market structure of industries), controversies regarding acts and laws caused by social demands and conflicts relevant to existing laws, expected efficacy or function of acts, and the relationships among issues during the legislative operations process. These sections and agencies should also propose and draft plausible measures (including concrete regulative contents for all possible legal and non-legal alternatives, and clarification of their necessity) and analyze and evaluate the related efficiency and costs influenced by people, enterprises, and governments for the implementation of these measures, which provides a reference standard for governmental legislation. Staroňová et al. [16] proposed that the quality of legislative drafts could be enhanced using RIA, and Hertin et al. [17] maintained that RIA ensures appropriate policy deliberations and provides for effective problem-solving within policy design.

funds for establishing air quality purification areas and low-carbon city facilities." These regulations provide subsidies for Taichung city government offices and public schools to establish EV charging stations, with an amount of NTD\$ 100–200 thousand provided based on the construction process for each station. Therefore, Taichung has made a firm step in better utilizing government vehicles and public services for citizens. Research for relevant industries indicates that the 2009 greenhouse gas emissions caused by fuel combustion in Taichung comprised 4285.8 thousand metric tons, which was 42.9% of the total greenhouse gas emissions. Compared with the emissions from 2000, we determined that the increased rate of greenhouse gas emissions during these 10 years was 31.05%. The government of Taichung plans to achieve its mid-stage goal for energy and resource reduction before 2020 by actively developing the EV industry and relevant complementary measures. The goal of the Taichung city government is to reduce the consumption of diesel fuel and gasoline by 42.09 and 21.99%, respectively, with a total green-

Electric Vehicle Promotion Policy in Taiwan http://dx.doi.org/10.5772/intechopen.74019 73

According to an evaluation report published by the Intergovernmental Panel on Climate Change (IPCC), current global warming, which is chiefly caused by human activities, manifests a clear tendency that will result in a greenhouse effect that induces famine, water shortages, and the extinction of one third of existing species [19]. After the Kyoto Protocol took effect in 2005, the signatories created various compulsory or flexible regulatory mechanisms, such as carbon levies or taxes and carbon trading, to achieve the goal of reducing greenhouse gas emissions. Taiwan is not a member of the United Nations and did not sign the Kyoto Protocol. However, Taiwan cannot ignore the responsibility of being a global citizen. Taiwan should comply with relevant environmental protection conventions and regulations because it adopts trading and commercial relationships with numerous countries and relevant indus-

tries in the country experience the pressure of globalization and internationalization.

The central government of Taiwan has responded to this trend, and the Intelligent Electric Vehicle Promotion Office, Industrial Development Bureau, Ministry of Economic Affairs, was officially established in 2010. In addition, the Executive Yuan has listed intelligent EVs as a priority among the four major emerging intelligent industries. The Ministry of Economic Affairs created and drafted the "Intelligent Electric Vehicle Development Strategies and Promotion Plan" and five explicit major promotional strategies to popularize the use of EVs by actively constructing environmental facilities and providing tax concessions. By assisting industrial development, the government intends to make the development of EVs in Taiwan a global model and to fulfill the policy goal of creating a low-carbon Taiwan. It is expected that by 2016, over 60 thousand intelligent EVs will have been produced, an output value for manufacturing greater than NTD\$ 120 billion and an output value for the service industry of NTD\$ 31.2 billion achieved, and more than 24,000 jobs created. In the future, the Ministry of Economic Affairs will dedicate itself to developing a prototype for the EV industry chain by proposing solutions for green transportation, ranging from upstream batteries, charging stations, mid-stream motors, controllers and other components, and downstream vehicle

house gas reduction rate of 28.98%.

manufacturing.

**3.2. Prospects of the EV Industry in Taiwan**

In addition, because the regulatory administration that limits traditional vehicles is a violation of people's freedom and rights, according to Articles 102 and 164 of the Administrative Procedure Act, Taiwan's government is responsible for holding hearings in which public opinions and feedback are consulted. Noland [18] argued that proper assessment procedures are a means to keep the rhetoric surrounding decision-making honest, both by providing the best information and analysis to the public and by establishing a framework for examining this information.

Based on evaluation information regarding industrial environments and external markets, this study provides a guide for market strategy positioning and an analysis of industrial innovation requirements and industrial portfolios. Furthermore, we provide advices regarding the developmental strategy of the EV industry in Taichung, Taiwan, and these suggestions can be expanded as reference standards for industrial development in similar cities in developing countries.

#### **3. The practical EV experience in Taiwan**

#### **3.1. The current status and operations of EV in Taichung, Taiwan**

Being the second large city in Taiwan, Taichung city government takes lots of measures to promote innovations. In recent years, numerous innovations and advancements, such as the development of broadband infrastructure and the construction of an intelligent city, were implemented by the Taichung city government. As a first-time applicant, Taichung was named one of the top seven intelligent cities in the World in 2012 by the Intelligent Community Forum (ICF). Furthermore, Taichung city was nominated Smarter City in "Smarter Cities Challenge" plan by IBM in 2015, the only city in Taiwan. The Taichung city government is enthusiastically constructing a "carbon free, trouble free" world-class city, and establishes low-carbon city promotion task force to implement the related policies, especially the EV policy.

The most notable measure on the part of the Taichung city government was the distribution of 64 intelligent EVs to government departments for official use on February 7, 2012. The government also created 64 charging stations, demonstrating Taichung's determination to create a leading low-carbon model city in Taiwan. Furthermore, to promote Taichung as an EV model city, the mayor proclaimed an exemption for vehicle license taxes, fuel taxes, parking fees, and charging fees for EVs. One week later, it was announced that free shuttle EVs would be available to citizens and officials for use between three major civic centers in Taichung.

Regarding administrative work, the Environmental Protection Bureau of Taichung city government has enacted the "regulations for applications and verifications of air pollution prevention funds for establishing air quality purification areas and low-carbon city facilities." These regulations provide subsidies for Taichung city government offices and public schools to establish EV charging stations, with an amount of NTD\$ 100–200 thousand provided based on the construction process for each station. Therefore, Taichung has made a firm step in better utilizing government vehicles and public services for citizens. Research for relevant industries indicates that the 2009 greenhouse gas emissions caused by fuel combustion in Taichung comprised 4285.8 thousand metric tons, which was 42.9% of the total greenhouse gas emissions. Compared with the emissions from 2000, we determined that the increased rate of greenhouse gas emissions during these 10 years was 31.05%. The government of Taichung plans to achieve its mid-stage goal for energy and resource reduction before 2020 by actively developing the EV industry and relevant complementary measures. The goal of the Taichung city government is to reduce the consumption of diesel fuel and gasoline by 42.09 and 21.99%, respectively, with a total greenhouse gas reduction rate of 28.98%.

#### **3.2. Prospects of the EV Industry in Taiwan**

and governments for the implementation of these measures, which provides a reference standard for governmental legislation. Staroňová et al. [16] proposed that the quality of legislative drafts could be enhanced using RIA, and Hertin et al. [17] maintained that RIA ensures appropriate policy deliberations and provides for effective problem-solving within policy design. In addition, because the regulatory administration that limits traditional vehicles is a violation of people's freedom and rights, according to Articles 102 and 164 of the Administrative Procedure Act, Taiwan's government is responsible for holding hearings in which public opinions and feedback are consulted. Noland [18] argued that proper assessment procedures are a means to keep the rhetoric surrounding decision-making honest, both by providing the best information and analysis to the public and by establishing a framework for examining

Based on evaluation information regarding industrial environments and external markets, this study provides a guide for market strategy positioning and an analysis of industrial innovation requirements and industrial portfolios. Furthermore, we provide advices regarding the developmental strategy of the EV industry in Taichung, Taiwan, and these suggestions can be expanded as reference standards for industrial development in similar cities in devel-

Being the second large city in Taiwan, Taichung city government takes lots of measures to promote innovations. In recent years, numerous innovations and advancements, such as the development of broadband infrastructure and the construction of an intelligent city, were implemented by the Taichung city government. As a first-time applicant, Taichung was named one of the top seven intelligent cities in the World in 2012 by the Intelligent Community Forum (ICF). Furthermore, Taichung city was nominated Smarter City in "Smarter Cities Challenge" plan by IBM in 2015, the only city in Taiwan. The Taichung city government is enthusiastically constructing a "carbon free, trouble free" world-class city, and establishes low-carbon city

The most notable measure on the part of the Taichung city government was the distribution of 64 intelligent EVs to government departments for official use on February 7, 2012. The government also created 64 charging stations, demonstrating Taichung's determination to create a leading low-carbon model city in Taiwan. Furthermore, to promote Taichung as an EV model city, the mayor proclaimed an exemption for vehicle license taxes, fuel taxes, parking fees, and charging fees for EVs. One week later, it was announced that free shuttle EVs would be available to citizens and officials for use between three major civic centers in Taichung.

Regarding administrative work, the Environmental Protection Bureau of Taichung city government has enacted the "regulations for applications and verifications of air pollution prevention

promotion task force to implement the related policies, especially the EV policy.

this information.

72 Energy Management for Sustainable Development

oping countries.

**3. The practical EV experience in Taiwan**

**3.1. The current status and operations of EV in Taichung, Taiwan**

According to an evaluation report published by the Intergovernmental Panel on Climate Change (IPCC), current global warming, which is chiefly caused by human activities, manifests a clear tendency that will result in a greenhouse effect that induces famine, water shortages, and the extinction of one third of existing species [19]. After the Kyoto Protocol took effect in 2005, the signatories created various compulsory or flexible regulatory mechanisms, such as carbon levies or taxes and carbon trading, to achieve the goal of reducing greenhouse gas emissions. Taiwan is not a member of the United Nations and did not sign the Kyoto Protocol. However, Taiwan cannot ignore the responsibility of being a global citizen. Taiwan should comply with relevant environmental protection conventions and regulations because it adopts trading and commercial relationships with numerous countries and relevant industries in the country experience the pressure of globalization and internationalization.

The central government of Taiwan has responded to this trend, and the Intelligent Electric Vehicle Promotion Office, Industrial Development Bureau, Ministry of Economic Affairs, was officially established in 2010. In addition, the Executive Yuan has listed intelligent EVs as a priority among the four major emerging intelligent industries. The Ministry of Economic Affairs created and drafted the "Intelligent Electric Vehicle Development Strategies and Promotion Plan" and five explicit major promotional strategies to popularize the use of EVs by actively constructing environmental facilities and providing tax concessions. By assisting industrial development, the government intends to make the development of EVs in Taiwan a global model and to fulfill the policy goal of creating a low-carbon Taiwan. It is expected that by 2016, over 60 thousand intelligent EVs will have been produced, an output value for manufacturing greater than NTD\$ 120 billion and an output value for the service industry of NTD\$ 31.2 billion achieved, and more than 24,000 jobs created. In the future, the Ministry of Economic Affairs will dedicate itself to developing a prototype for the EV industry chain by proposing solutions for green transportation, ranging from upstream batteries, charging stations, mid-stream motors, controllers and other components, and downstream vehicle manufacturing.

Boyer and Verma [20] explained that, to improve capacity management abilities, appropriate measures should be devised. In addition, Greenhalgh and Rogers [21] suggested that governments should establish innovative policies, create parameters for intellectual property right systems, and provide research funds to industries. Therefore, the prospective development of Taichung should refer to the mentioned suggestions. Furthermore, Taichung as a directcontrolled municipality can induce inter-regional momentum for nearby cities and counties, accommodating long-term developmental strategies for governance mechanisms in administrative regions.

study indicated that most respondents regarded pricing as the primary intervening factor

Electric Vehicle Promotion Policy in Taiwan http://dx.doi.org/10.5772/intechopen.74019 75

Responding to this "range anxiety," some of the battery replacement technologies on the market, such as that developed by Better Place, enable the replacement of the original rental battery in an EV with a fully charged one within 1 minute using robotic arms installed in replacement stations [23]. If related technologies can be introduced, the Taichung City Precision Machinery Innovation Technology Park, with its accomplished experience and ability in precision machinery, could realize this possibility. However, technologies for wireless charging remain in the preliminary stages. The proposals for these technologies, such as those regarding the Alliance for Wireless Power and Plugless Power [24, 25], are too immature to be adopted in practice.

To accommodate this trend, Taiwan must conduct research on pertinent technologies and devise appropriate plans. The core cluster of precision machinery industries in central Taiwan, which has the highest production or output value and density per unit area worldwide, is located in Taichung. The central region's efforts in precision machinery have made Taiwan the fourth leading country in machine tool manufacturing and the third leading country in exports. Machine tool manufacturers in Taichung have developed hard power for manufacturing complete sets or machines and critical parts, especially in areas such as the critical technologies of machine tools for 3C and automobile parts processing, virtual machine tools, computer visual recognition and positioning, and intelligent automation and robotics. In the future, a characteristic EV industrial environment can be established if the industry can further understand trends and accommodate user demands, and employ soft power technologies, such as digital analysis and design, mechatronic integration, and value-added software,

According to data and statistics from the Taiwan Industrial Technology Research Institute, a total of 37 factories or vendors are currently developing 9 major EV battery related products, including cathode materials, anode materials, battery modules, electrolytes, battery systems, separators, battery cells, current converter modules, and management systems. In addition, because it became a directly-controlled municipality in 2010 and the leading region in Central Taiwan, Taichung should be able to effectively cooperate with nearby cities and counties to expand and develop the EV industry market. As an example, nearby Changhua County possesses more than 200 factories or vendors that produce automobile parts and comprise 10% of related factories in Taiwan. Sales in the tire and rubber industry in Changhua County constitute 50–60% of all automobile part sales in Taiwan (ARTC, 2012). As the largest cluster of automobile parts industries in Taiwan, more than half of all automobile parts are manufactured in Changhua County, including lighting systems, automotive multimedia audio-visual systems, mirrors, tires, seat belts, lamp rims, straps and belts, HID lamps, rear-view mirrors, gear sticks or knobs, windshield wipers, steering wheel covers, headlight rims, car cigarette lighters, carbon removers and cleaners, and decorative accessories. The largest automaker in Taiwan, Yulon Motor, is located in Miaoli County, which is north of Taichung. In 2009, Yulon Motors combined "luxury" and "genius" to create its private brand, "Luxgen," which is the primary EV brand used by the Taichung city government. The Luxgen brand EV run a good start in test project, and it will be the first choice of

from a perspective of system integration.

when considering EV purchase; limited mileage or range was the second factor [22].

Regarding geographic location and environment, the complete transportation network of Taichung includes Taichung Harbor, the airport, highways, and railways. If geographic and transportation resources can be properly managed and adopted, these can catalyze the growth of industries in Central Taiwan. The Taichung city government manifested its determination to "promote green transportation" and to "build a convenient and friendly green transportation environment" in its 2011–2014 medium-term policy and project outline and environmental health policy planning goals. To achieve this goal, Taiwan government must utilize its advantageous location in Central Taiwan. The central region includes developed machinery industries with complete satellite factories. Consequently, the Taiwan government should assemble mature precision machinery suppliers in the central area to develop and foster the EV industry, and connect with other suppliers in nearby cities and counties such as Changhua and Miaoli to create a green-transportation environment.

#### **3.3. Technology developments and limitations of the EV industry in Taiwan**

Presently, power is not the only focus of EV development in advanced countries. The computer technology and added intelligent functions have also been integrated. The major directions for EV research and development comprise two areas: intelligent safety systems and EV systems. Intelligent safety systems, which allow drivers to control their vehicle with greater ease, include forward collision prevention for urban areas, intelligent integrated displays of screen information; driver status monitoring that is integrated with vehicle signals, complete moving object detection, intelligent parking guidance systems, and integrated torque sensors. EV systems include advanced and chic technologies such as full vehicle control systems, constant electricity leakage detection, adjustable air conditioning (including heating and cooling), vacuum brake booster systems, and rapid and flexible battery installation structures. Rechargeable batteries available in the EV market consist of four major types, Ni-MH, LiMn, LiFePO4, and LiNiCoMn, each with respective pros and cons. Scholars believe that LFP batteries, which are extremely safe and long-lasting, will be the choice of the next generation and will be directly used in EVs.

However, EVs' limited power causes doubt for customers when purchasing, for which the wide-spread construction of charging stations and pillars are solutions that can be implemented currently. During the 64th Frankfurt Motor Show in 2011, TÜV Rheinland, Germany, published its "Global Electric Vehicle Survey." The survey was an extensive international research on 12 major global vehicle markets, including China, Denmark, Germany, France, India, Israel, Italy, Japan, Portugal, Spain, the United Kingdom, and the United States. This study indicated that most respondents regarded pricing as the primary intervening factor when considering EV purchase; limited mileage or range was the second factor [22].

Boyer and Verma [20] explained that, to improve capacity management abilities, appropriate measures should be devised. In addition, Greenhalgh and Rogers [21] suggested that governments should establish innovative policies, create parameters for intellectual property right systems, and provide research funds to industries. Therefore, the prospective development of Taichung should refer to the mentioned suggestions. Furthermore, Taichung as a directcontrolled municipality can induce inter-regional momentum for nearby cities and counties, accommodating long-term developmental strategies for governance mechanisms in adminis-

Regarding geographic location and environment, the complete transportation network of Taichung includes Taichung Harbor, the airport, highways, and railways. If geographic and transportation resources can be properly managed and adopted, these can catalyze the growth of industries in Central Taiwan. The Taichung city government manifested its determination to "promote green transportation" and to "build a convenient and friendly green transportation environment" in its 2011–2014 medium-term policy and project outline and environmental health policy planning goals. To achieve this goal, Taiwan government must utilize its advantageous location in Central Taiwan. The central region includes developed machinery industries with complete satellite factories. Consequently, the Taiwan government should assemble mature precision machinery suppliers in the central area to develop and foster the EV industry, and connect with other suppliers in nearby cities and counties such as

Changhua and Miaoli to create a green-transportation environment.

**3.3. Technology developments and limitations of the EV industry in Taiwan**

Presently, power is not the only focus of EV development in advanced countries. The computer technology and added intelligent functions have also been integrated. The major directions for EV research and development comprise two areas: intelligent safety systems and EV systems. Intelligent safety systems, which allow drivers to control their vehicle with greater ease, include forward collision prevention for urban areas, intelligent integrated displays of screen information; driver status monitoring that is integrated with vehicle signals, complete moving object detection, intelligent parking guidance systems, and integrated torque sensors. EV systems include advanced and chic technologies such as full vehicle control systems, constant electricity leakage detection, adjustable air conditioning (including heating and cooling), vacuum brake booster systems, and rapid and flexible battery installation structures. Rechargeable batteries available in the EV market consist of four major types, Ni-MH, LiMn, LiFePO4, and LiNiCoMn, each with respective pros and cons. Scholars believe that LFP batteries, which are extremely safe and long-lasting, will be the choice of the next generation and

However, EVs' limited power causes doubt for customers when purchasing, for which the wide-spread construction of charging stations and pillars are solutions that can be implemented currently. During the 64th Frankfurt Motor Show in 2011, TÜV Rheinland, Germany, published its "Global Electric Vehicle Survey." The survey was an extensive international research on 12 major global vehicle markets, including China, Denmark, Germany, France, India, Israel, Italy, Japan, Portugal, Spain, the United Kingdom, and the United States. This

trative regions.

74 Energy Management for Sustainable Development

will be directly used in EVs.

Responding to this "range anxiety," some of the battery replacement technologies on the market, such as that developed by Better Place, enable the replacement of the original rental battery in an EV with a fully charged one within 1 minute using robotic arms installed in replacement stations [23]. If related technologies can be introduced, the Taichung City Precision Machinery Innovation Technology Park, with its accomplished experience and ability in precision machinery, could realize this possibility. However, technologies for wireless charging remain in the preliminary stages. The proposals for these technologies, such as those regarding the Alliance for Wireless Power and Plugless Power [24, 25], are too immature to be adopted in practice.

To accommodate this trend, Taiwan must conduct research on pertinent technologies and devise appropriate plans. The core cluster of precision machinery industries in central Taiwan, which has the highest production or output value and density per unit area worldwide, is located in Taichung. The central region's efforts in precision machinery have made Taiwan the fourth leading country in machine tool manufacturing and the third leading country in exports. Machine tool manufacturers in Taichung have developed hard power for manufacturing complete sets or machines and critical parts, especially in areas such as the critical technologies of machine tools for 3C and automobile parts processing, virtual machine tools, computer visual recognition and positioning, and intelligent automation and robotics. In the future, a characteristic EV industrial environment can be established if the industry can further understand trends and accommodate user demands, and employ soft power technologies, such as digital analysis and design, mechatronic integration, and value-added software, from a perspective of system integration.

According to data and statistics from the Taiwan Industrial Technology Research Institute, a total of 37 factories or vendors are currently developing 9 major EV battery related products, including cathode materials, anode materials, battery modules, electrolytes, battery systems, separators, battery cells, current converter modules, and management systems. In addition, because it became a directly-controlled municipality in 2010 and the leading region in Central Taiwan, Taichung should be able to effectively cooperate with nearby cities and counties to expand and develop the EV industry market. As an example, nearby Changhua County possesses more than 200 factories or vendors that produce automobile parts and comprise 10% of related factories in Taiwan. Sales in the tire and rubber industry in Changhua County constitute 50–60% of all automobile part sales in Taiwan (ARTC, 2012). As the largest cluster of automobile parts industries in Taiwan, more than half of all automobile parts are manufactured in Changhua County, including lighting systems, automotive multimedia audio-visual systems, mirrors, tires, seat belts, lamp rims, straps and belts, HID lamps, rear-view mirrors, gear sticks or knobs, windshield wipers, steering wheel covers, headlight rims, car cigarette lighters, carbon removers and cleaners, and decorative accessories. The largest automaker in Taiwan, Yulon Motor, is located in Miaoli County, which is north of Taichung. In 2009, Yulon Motors combined "luxury" and "genius" to create its private brand, "Luxgen," which is the primary EV brand used by the Taichung city government. The Luxgen brand EV run a good start in test project, and it will be the first choice of Taiwan government use that will be benefit to cultivate the consumer habit of EV. In conclusion, Taichung possesses sufficient qualifications, including advantages in population, geographic location, and industrial environment, for developing the EV industry.

Taichung. However, dedicated units should appropriately and promptly consider and detect shifts of external industrial environments and technology and strengthen horizontal contact and communication between governmental organizations to assist the transformation of local industries (e.g., when adopting the goal of building a low-carbon city, the office should promote EVs while simultaneously considering the concept of intelligent houses and consulting the Urban Development Bureau, Economic Development Bureau, Construction Bureau, Transportation Bureau, and Environmental Protection Bureau). Because it is restricted by various organizational positions and capacities, administration is frequently censured for its inability to offer macroscopic opinions with foresight even if each organization has its own responsibilities. Therefore, appropriate policy planning and execution can be achieved by following the example of the operation of the interagency climate change adaptation task force

Electric Vehicle Promotion Policy in Taiwan http://dx.doi.org/10.5772/intechopen.74019 77

• Government organizations should actively cooperate with the plans developed by dedi-

The current execution regarding EV promotion policies is under the direction of the Environmental Protection Bureau. However, as mentioned, the bureau is deficient in both its ideas and other duties. To solve this problem, policy instruction and appropriate levels of novel technical ideas can be provided by the low-carbon office. In addition, executive units should deliberate on methods for accommodating policies (e.g., regulation amendments, budgeting, and environ-

• Appropriate reward and incentive measures should be provided to stimulate consumer

The four exemptions of vehicle license taxes, fuel taxes, parking fees, and charging fees that are offered by the Taichung city government, despite their benefits, fail to generate sufficient inducement for consumers to purchase EVs. We believe that consumer demands could be stimulated and the sales and supply of EVs could be enhanced if superior subsidies for vehicle purchasing are provided. An additional means of generating incentive is to follow the example of the policy subsidy of USD\$43 million provided for battery manufacturers by the U.S. Department of Energy in August 2012. These subsidies will initiate the advanced emer-

Following decades of development and transformation, the precision machinery industry has evolved into an essential target for development in Central Taiwan, and the Taichung Precision Machinery Innovation Technology Park is qualified to become a cluster for the EV industry. There are approximately more than 1000 precision machinery manufacturers and tens of thousands of suppliers that comprise an industry population greater than 470,000, accounting for 18% of the employed population, in the central region. The gross output or production value of the precision machinery industry will reach 905.8 billion dollars in 2012 and is an emerging trillion-dollar industry, according to data provided by the Industrial Economics and Knowledge Center of the Industrial Technology Research Institute. Upstream,

ment construction) and cultivate core abilities to respond to, and fulfill, policy demands.

cated organization for the superior execution of policies:

gence of the golden cross for supply and demand curves.

of the U.S. Federal Government.

demand:

*4.2.2. Industries*

#### **4. Findings and suggestions**

#### **4.1. Findings**

Mainstream choices in the current automobile market are European, American, and Japanese vehicles, and developing countries should determine custom paths that differ from those of developed countries when developing automobile industries. In light of increasing fuel prices and the emphasis on saving energy and reducing carbon emissions, this study suggests that developing countries, because they are newcomers to the automobile industry, resist endeavors to improve the performance of traditional internal combustion engines. Rather, they should actively and effectively advocate the development of the EV industry, which not only represents a transformation in the form of automobile power, but can be revolutionary in people's lives and in governments' efforts regarding the blue ocean strategy.

Taiwan has actively promoted the EV industry, according to the proclamation of the intelligent EV scheme issued by the Department of Industrial Technology of the Ministry of Economic Affairs: "This scheme aims to promote the technology development of critical parts and the enhancement of product performance for intelligent EVs, and also to refine the verification standard of critical parts for intelligent EVs and the establishment foundation for vehicle verification platforms. The results will be adopted as industry regulations for technological development of intelligent EVs and critical parts to lead the world in the establishment and development of EV specifications".

Although Taichung was selected by Taiwan government as a low-carbon model city and has made a preliminary step in developing EV operations, this study believes that Taichung should dedicate itself to the development of the EV industry as soon as possible, using its advantages in industrial environments and immense EV-related industry chain. The enhancement of the technological competence of existing traditional automobile manufacturers is not the only possible gain. With the assistance of digital technologies, Taiwan could achieve advanced levels similar to those worldwide, and job opportunities for employees with digital talents can be created. Consequently, we offer the following suggestions:

#### **4.2. Suggestions**

#### *4.2.1. Administration*

• For proper planning of policies, dedicated units should reinforce contact between government organizations:

The dedicated unit of the "low-carbon office" is a high-level unit that makes comprehensive plans and supervises the promotion of green policies in related government organizations in Taichung. However, dedicated units should appropriately and promptly consider and detect shifts of external industrial environments and technology and strengthen horizontal contact and communication between governmental organizations to assist the transformation of local industries (e.g., when adopting the goal of building a low-carbon city, the office should promote EVs while simultaneously considering the concept of intelligent houses and consulting the Urban Development Bureau, Economic Development Bureau, Construction Bureau, Transportation Bureau, and Environmental Protection Bureau). Because it is restricted by various organizational positions and capacities, administration is frequently censured for its inability to offer macroscopic opinions with foresight even if each organization has its own responsibilities. Therefore, appropriate policy planning and execution can be achieved by following the example of the operation of the interagency climate change adaptation task force of the U.S. Federal Government.

• Government organizations should actively cooperate with the plans developed by dedicated organization for the superior execution of policies:

The current execution regarding EV promotion policies is under the direction of the Environmental Protection Bureau. However, as mentioned, the bureau is deficient in both its ideas and other duties. To solve this problem, policy instruction and appropriate levels of novel technical ideas can be provided by the low-carbon office. In addition, executive units should deliberate on methods for accommodating policies (e.g., regulation amendments, budgeting, and environment construction) and cultivate core abilities to respond to, and fulfill, policy demands.

• Appropriate reward and incentive measures should be provided to stimulate consumer demand:

The four exemptions of vehicle license taxes, fuel taxes, parking fees, and charging fees that are offered by the Taichung city government, despite their benefits, fail to generate sufficient inducement for consumers to purchase EVs. We believe that consumer demands could be stimulated and the sales and supply of EVs could be enhanced if superior subsidies for vehicle purchasing are provided. An additional means of generating incentive is to follow the example of the policy subsidy of USD\$43 million provided for battery manufacturers by the U.S. Department of Energy in August 2012. These subsidies will initiate the advanced emergence of the golden cross for supply and demand curves.

#### *4.2.2. Industries*

Taiwan government use that will be benefit to cultivate the consumer habit of EV. In conclusion, Taichung possesses sufficient qualifications, including advantages in population,

Mainstream choices in the current automobile market are European, American, and Japanese vehicles, and developing countries should determine custom paths that differ from those of developed countries when developing automobile industries. In light of increasing fuel prices and the emphasis on saving energy and reducing carbon emissions, this study suggests that developing countries, because they are newcomers to the automobile industry, resist endeavors to improve the performance of traditional internal combustion engines. Rather, they should actively and effectively advocate the development of the EV industry, which not only represents a transformation in the form of automobile power, but can be revolutionary

Taiwan has actively promoted the EV industry, according to the proclamation of the intelligent EV scheme issued by the Department of Industrial Technology of the Ministry of Economic Affairs: "This scheme aims to promote the technology development of critical parts and the enhancement of product performance for intelligent EVs, and also to refine the verification standard of critical parts for intelligent EVs and the establishment foundation for vehicle verification platforms. The results will be adopted as industry regulations for technological development of intelligent EVs and critical parts to lead the world in the establishment

Although Taichung was selected by Taiwan government as a low-carbon model city and has made a preliminary step in developing EV operations, this study believes that Taichung should dedicate itself to the development of the EV industry as soon as possible, using its advantages in industrial environments and immense EV-related industry chain. The enhancement of the technological competence of existing traditional automobile manufacturers is not the only possible gain. With the assistance of digital technologies, Taiwan could achieve advanced levels similar to those worldwide, and job opportunities for employees with digital

• For proper planning of policies, dedicated units should reinforce contact between govern-

The dedicated unit of the "low-carbon office" is a high-level unit that makes comprehensive plans and supervises the promotion of green policies in related government organizations in

geographic location, and industrial environment, for developing the EV industry.

in people's lives and in governments' efforts regarding the blue ocean strategy.

talents can be created. Consequently, we offer the following suggestions:

**4. Findings and suggestions**

76 Energy Management for Sustainable Development

and development of EV specifications".

**4.2. Suggestions**

*4.2.1. Administration*

ment organizations:

**4.1. Findings**

Following decades of development and transformation, the precision machinery industry has evolved into an essential target for development in Central Taiwan, and the Taichung Precision Machinery Innovation Technology Park is qualified to become a cluster for the EV industry. There are approximately more than 1000 precision machinery manufacturers and tens of thousands of suppliers that comprise an industry population greater than 470,000, accounting for 18% of the employed population, in the central region. The gross output or production value of the precision machinery industry will reach 905.8 billion dollars in 2012 and is an emerging trillion-dollar industry, according to data provided by the Industrial Economics and Knowledge Center of the Industrial Technology Research Institute. Upstream, mid-stream, and downstream industries concentrate in Central Taiwan and the presence of neighboring schools and research institutions encourages the enhancement of research and development for technologies and the frequency of employee and personnel exchange, creating enhanced prospects for industry. The Taichung city government decided to make the Taichung Precision Machinery Innovation Technology Park an intelligent industry cluster (i-Park) after Taichung was named one of the top seven intelligent cities in the beginning of 2012. An intelligent industry service platform for Taichung precision machinery was planned for establishment and will provide companies and the public with a convenient information exchange platform for the promotion of applications such as intelligent energy saving. Based on the above analysis, our suggestions regarding industries are as follows.

administration regarding rewards or subsidies for the EV industry (e.g., the amount of subsidies, length of subsidies, and benefits or discounts given to EV consumers) should be based on interpretations No. 614 and No. 443 of the Justices of the Constitutional Court for the Judicial Yuan. Supply administration includes less restrictive legislation and does not require

Electric Vehicle Promotion Policy in Taiwan http://dx.doi.org/10.5772/intechopen.74019 79

Letcher [27] argued that governments, playing a critical role in traffic planning, should endeavor to solve issues of supply and operation such as externality and fairness. The State of California, for example, has limited the minimum tolerance of the environmental impacts of vehicles through legislation. Furthermore, the California Air Resources Board (CARB) has organized the California zero emissions vehicle (ZEV) program, which, through strict policies and legislation, has a goal of zero carbon emissions and seeks to reduce the level of green-

To resolve the financial and legislative difficulties encountered by local governments, this study further suggests that the central government issue regulations and rewards through legislation. The Executive Yuan should establish and integrate regulations that can be followed by the entire country. To match the speed of technology's rapid development, related legislation should be more efficient in accommodating these changes than in other fields. Summarizing

For newly proposed green industries to be successful, an amenable environment for investment and industry is essential. After communicating with relevant companies to understand their demands, governments should create enhanced environments for assistance and subsidies, increase the rewards for industry transformation, and actively establish relevant laws

• Attention to the legality of the adoption of international and central government standards:

Central regulations and international treaties and conventions should always be observed in addition to the mentioned legislative demands for the supply administration regarding rewards and subsidies. Article 30, Paragraphs 1 and 2 of the Taiwan Local Government Act, in particular, should be complied with: "Self-government ordinances shall become invalid if contradictory to the Constitution, laws, regulations promulgated in accordance with law, or self-government ordinances of the superior self-governing bodies"; "Self-government regulations shall become invalid if contradictory to the Constitution, laws, regulations promulgated in accordance with law, self-government ordinances of the superior self-governing bodies, or the self-government ordinance of the self-governing body concerned." Overall planning for administration should comply with Articles 163 and 164 of the Administrative Procedure Act

In recent years, Taiwan has suffered from air pollution, especially in Central Taiwan. One of the major sources of pollution is the vehicle, causing a lot of PM2.5 pollutant. The monitoring

the above, this study's suggestions regarding laws and regulations are as follows.

• Establishment of an effective environment for policies and laws:

and regulations to legalize and standardize administrative work.

in accordance with the principle of "law-based administration."

**5. Conclusion**

regulation by self-government ordinances.

house gas emissions to their levels before 1990 by 2050 [28].

• Advanced technologies imports and well-established environmental infrastructure:

The technology in the overall supply chains requires enhancement by providing favorable investment environments to attract investments from foreign hi-tech vendors, and by cultivating local enterprises by strengthening technology transfers through joint ventures. In addition, environmental infrastructure should be strengthened, including the wide-spread establishment of smart meters with bi-directional communication functions, to effectively restrict user loads. Furthermore, no negligence can occur if a smart grid is constructed that incorporates vehicle design, power supply, and electricity grid systems with overall planning. Kim et al. [26] argued that planning and investment for electricity distribution grids and infrastructure should begin as soon as possible. In addition, a well-planned intelligent energy management system (IEMS) is capable of ushering industries into mature and comprehensive stages, increasing opportunities for industry growth.

• Assembling industry clusters and providing rewards and incentives when appropriate:

Based on the aforementioned findings, the Taichung city government should construct an exchange platform for the EV industry and provide necessary technologies and up-to-date information to empower companies. It should also collect and post energy-related knowledge and disseminate information such as relevant websites. Furthermore, for the formation and development of the EV industry, the government should establish industry districts or park and rewards and conveniences such as free transportation and tax subsidies.

#### *4.2.3. Laws and regulations*

The RIA indicates that, for the Taichung city government to establish suitable policies and conduct administrative matters in accordance with the law, it should request that its subordinate organizations conduct evaluations on adaptation statements and legislation. These evaluations refer to lists in which affected areas, such as existing plans, activities, traffic or transportation, industrial environments, and land use, are organized based on analyses of various factors, including societal, economic, and industrial environments, from the perspectives of regulatory administration and supply administration. The regulatory administration for restricting traditional vehicles (e.g., restriction on carbon emissions for vehicles of a specific age, fees or taxes on vehicles older than a specific age) is to be regulated by self-government ordinances because, according to Article 28, Paragraph 2 of the Taiwan Local Government Act, "issues that create, deprive, or restrict the rights and duties of residents of local self-governing bodies" should be restricted by self-government ordinances. Comparatively, supply administration regarding rewards or subsidies for the EV industry (e.g., the amount of subsidies, length of subsidies, and benefits or discounts given to EV consumers) should be based on interpretations No. 614 and No. 443 of the Justices of the Constitutional Court for the Judicial Yuan. Supply administration includes less restrictive legislation and does not require regulation by self-government ordinances.

Letcher [27] argued that governments, playing a critical role in traffic planning, should endeavor to solve issues of supply and operation such as externality and fairness. The State of California, for example, has limited the minimum tolerance of the environmental impacts of vehicles through legislation. Furthermore, the California Air Resources Board (CARB) has organized the California zero emissions vehicle (ZEV) program, which, through strict policies and legislation, has a goal of zero carbon emissions and seeks to reduce the level of greenhouse gas emissions to their levels before 1990 by 2050 [28].

To resolve the financial and legislative difficulties encountered by local governments, this study further suggests that the central government issue regulations and rewards through legislation. The Executive Yuan should establish and integrate regulations that can be followed by the entire country. To match the speed of technology's rapid development, related legislation should be more efficient in accommodating these changes than in other fields. Summarizing the above, this study's suggestions regarding laws and regulations are as follows.

• Establishment of an effective environment for policies and laws:

For newly proposed green industries to be successful, an amenable environment for investment and industry is essential. After communicating with relevant companies to understand their demands, governments should create enhanced environments for assistance and subsidies, increase the rewards for industry transformation, and actively establish relevant laws and regulations to legalize and standardize administrative work.

• Attention to the legality of the adoption of international and central government standards:

Central regulations and international treaties and conventions should always be observed in addition to the mentioned legislative demands for the supply administration regarding rewards and subsidies. Article 30, Paragraphs 1 and 2 of the Taiwan Local Government Act, in particular, should be complied with: "Self-government ordinances shall become invalid if contradictory to the Constitution, laws, regulations promulgated in accordance with law, or self-government ordinances of the superior self-governing bodies"; "Self-government regulations shall become invalid if contradictory to the Constitution, laws, regulations promulgated in accordance with law, self-government ordinances of the superior self-governing bodies, or the self-government ordinance of the self-governing body concerned." Overall planning for administration should comply with Articles 163 and 164 of the Administrative Procedure Act in accordance with the principle of "law-based administration."

#### **5. Conclusion**

mid-stream, and downstream industries concentrate in Central Taiwan and the presence of neighboring schools and research institutions encourages the enhancement of research and development for technologies and the frequency of employee and personnel exchange, creating enhanced prospects for industry. The Taichung city government decided to make the Taichung Precision Machinery Innovation Technology Park an intelligent industry cluster (i-Park) after Taichung was named one of the top seven intelligent cities in the beginning of 2012. An intelligent industry service platform for Taichung precision machinery was planned for establishment and will provide companies and the public with a convenient information exchange platform for the promotion of applications such as intelligent energy saving. Based

on the above analysis, our suggestions regarding industries are as follows.

stages, increasing opportunities for industry growth.

78 Energy Management for Sustainable Development

*4.2.3. Laws and regulations*

• Advanced technologies imports and well-established environmental infrastructure:

The technology in the overall supply chains requires enhancement by providing favorable investment environments to attract investments from foreign hi-tech vendors, and by cultivating local enterprises by strengthening technology transfers through joint ventures. In addition, environmental infrastructure should be strengthened, including the wide-spread establishment of smart meters with bi-directional communication functions, to effectively restrict user loads. Furthermore, no negligence can occur if a smart grid is constructed that incorporates vehicle design, power supply, and electricity grid systems with overall planning. Kim et al. [26] argued that planning and investment for electricity distribution grids and infrastructure should begin as soon as possible. In addition, a well-planned intelligent energy management system (IEMS) is capable of ushering industries into mature and comprehensive

• Assembling industry clusters and providing rewards and incentives when appropriate:

and rewards and conveniences such as free transportation and tax subsidies.

Based on the aforementioned findings, the Taichung city government should construct an exchange platform for the EV industry and provide necessary technologies and up-to-date information to empower companies. It should also collect and post energy-related knowledge and disseminate information such as relevant websites. Furthermore, for the formation and development of the EV industry, the government should establish industry districts or park

The RIA indicates that, for the Taichung city government to establish suitable policies and conduct administrative matters in accordance with the law, it should request that its subordinate organizations conduct evaluations on adaptation statements and legislation. These evaluations refer to lists in which affected areas, such as existing plans, activities, traffic or transportation, industrial environments, and land use, are organized based on analyses of various factors, including societal, economic, and industrial environments, from the perspectives of regulatory administration and supply administration. The regulatory administration for restricting traditional vehicles (e.g., restriction on carbon emissions for vehicles of a specific age, fees or taxes on vehicles older than a specific age) is to be regulated by self-government ordinances because, according to Article 28, Paragraph 2 of the Taiwan Local Government Act, "issues that create, deprive, or restrict the rights and duties of residents of local self-governing bodies" should be restricted by self-government ordinances. Comparatively, supply

In recent years, Taiwan has suffered from air pollution, especially in Central Taiwan. One of the major sources of pollution is the vehicle, causing a lot of PM2.5 pollutant. The monitoring results of the daily average PM2.5 concentration for the Taichung area frequently reaches 80 μg/m<sup>3</sup> in 2017 winter, according to the data of the Environmental Protection Administration of Taiwan. The WHO standard for the daily average has been established as less than 25 μg/ m3 . This type of highly concentrated air pollution has caused damage to the environment and people. Consequently, the Taiwan government is now attempting to reduce the air pollution concentrations in the Taichung area using various methods, and energy consumption is expected to decrease because of the inducement of tax reform incentives and environmental improvements. The development of the utilization of, and subsidies for, electric motorcycles in Taiwan has matured, and Taichung is the most active city in Taiwan striving for EV development. In November 2017, Taiwan's Transport Minister announced that it will replace gasoline vehicles with electric vehicles by 2040 [29]. In the future, Taichung should appropriately employ its advantageous position in Central Taiwan and assemble mature precision machinery suppliers in the area to plan the construction of energy-saving facilities and to cultivate the EV industry. By doing so, Taichung will benefit its citizens and improve Central Taiwan's overall development. After development, the theory of paradigm shifts must be employed, allowing the empirical experience of Taichung to serve as a reference for the development of EV industries and the establishment of EV clusters in emerging cities in developing countries with similar environments and conditions.

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2012;**20**(3):85-128

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[13] Ellig J, McLaughlin PA. The quality and use of regulatory analysis in 2008. Risk Analysis.

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#### **5.1. Research limitations and suggestions for future research**

Due to relevant limitations, this study was only able to perform analyses through the perspectives of law, public administration, and management, neglecting analytical models in other disciplines and fields. We believe that interdisciplinary research methods can overcome the limitations of traditional research methods that are based on a single academic discipline. However, this research approach lacks quantitative analyses and cannot provide thorough statistics regarding EV development in Taichung.

Furthermore, as an emerging industry, the EV industry displays insufficiency in its independent developmental potential and requires improvement and expansion in its transitional stage and product positioning (e.g., current hybrid vehicles). Although there is an increasing amount of relevant essays being published, studies on zero-emission EVs, particularly on EVs in Taiwan, are scant. This study succeeded in employing the mentioned research methods and conducting interdisciplinary research, but failed to make parallel comparisons between the background factors of developing cities and countries of a similar scale. Various differences, such as those between local and unique customs and traditions or laws and regulations, can be integrated in future related research.

#### **Author details**

Li-Min Cheng

Address all correspondence to: lawlimin@gmail.com

Department of International Business, Providence University, Taiwan, ROC

#### **References**

results of the daily average PM2.5 concentration for the Taichung area frequently reaches

of Taiwan. The WHO standard for the daily average has been established as less than 25 μg/

Due to relevant limitations, this study was only able to perform analyses through the perspectives of law, public administration, and management, neglecting analytical models in other disciplines and fields. We believe that interdisciplinary research methods can overcome the limitations of traditional research methods that are based on a single academic discipline. However, this research approach lacks quantitative analyses and cannot provide thorough

Furthermore, as an emerging industry, the EV industry displays insufficiency in its independent developmental potential and requires improvement and expansion in its transitional stage and product positioning (e.g., current hybrid vehicles). Although there is an increasing amount of relevant essays being published, studies on zero-emission EVs, particularly on EVs in Taiwan, are scant. This study succeeded in employing the mentioned research methods and conducting interdisciplinary research, but failed to make parallel comparisons between the background factors of developing cities and countries of a similar scale. Various differences, such as those between local and unique customs and traditions or laws and regulations, can

. This type of highly concentrated air pollution has caused damage to the environment and people. Consequently, the Taiwan government is now attempting to reduce the air pollution concentrations in the Taichung area using various methods, and energy consumption is expected to decrease because of the inducement of tax reform incentives and environmental improvements. The development of the utilization of, and subsidies for, electric motorcycles in Taiwan has matured, and Taichung is the most active city in Taiwan striving for EV development. In November 2017, Taiwan's Transport Minister announced that it will replace gasoline vehicles with electric vehicles by 2040 [29]. In the future, Taichung should appropriately employ its advantageous position in Central Taiwan and assemble mature precision machinery suppliers in the area to plan the construction of energy-saving facilities and to cultivate the EV industry. By doing so, Taichung will benefit its citizens and improve Central Taiwan's overall development. After development, the theory of paradigm shifts must be employed, allowing the empirical experience of Taichung to serve as a reference for the development of EV industries and the establishment of EV clusters in emerging cities in developing countries

in 2017 winter, according to the data of the Environmental Protection Administration

80 μg/m<sup>3</sup>

with similar environments and conditions.

80 Energy Management for Sustainable Development

statistics regarding EV development in Taichung.

be integrated in future related research.

Address all correspondence to: lawlimin@gmail.com

Department of International Business, Providence University, Taiwan, ROC

**Author details**

Li-Min Cheng

**5.1. Research limitations and suggestions for future research**

m3


[17] Hertin J, Jacob K, Pesch U, Pacchi C. The production and use of knowledge in regulatory impact assessment – An empirical analysis. Forest Policy and Economics. 2009; **11**(5-6):413-421

**Section 2**

**Technologies and Industries**

