Bayesian Vector Autoregression Analysis of Chinese Coal-Fired Thermal Power Plants

Considering the dataset of information related to Chinese coal-fired thermal power plants during the 2005–2017 period, we initially investigated the orthogonalized response of the carbon emission to energy consumption and power generation by using Bayesian vector autoregressions and feedback solutions for impulse control technology. The results showed that the effects of energy consumption and power generation on carbon emissions were significant. The Chinese government has launched a program aimed at curbing carbon emission peaks and neutralizing or decreasing carbon emissions. The causal relationship concludes that China still needs further investment in emission abatement, improvement related to the level of openness to the outside world, and the strengthening of the construction of green zones for industrial transfer to mitigate carbon emissions.