The Impact of China's Carbon Market on the Decarbonization of the Coal Power Industry: An Approach Considering Long‐Term Carbon Net Expenditures

Coal-fired power industry is a major carbon emitter which is responsible for global warming. The carbon market is an important tool to decarbonize the coal-fired power industry. This study extends the cited Chinese literature on how carbon net expenditures impact investments at the technology level. A metric, the long-term carbon net expenditure, is introduced to estimate the carbon net expenditure of decarbonization projects throughout their service life. The analysis suggests that retrofitting existing coal-fired power units for biomass co-firing will become economically feasible from 2043, and implementing carbon capture retrofitting will be viable from 2047. Enhancing the carbon market's long-term development path is essential to promoting these decarbonization efforts.