The national and international impacts of coal-to-gas switching in the Chinese power sector

We evaluate the national and international impacts-on energy consumption and production, trade, and economic activity-of Chinese coal-to-gas switching in the electric power sector. We find that assumptions about growth rates in electricity generation from renewables are the key determinant in evaluating the economic consequences for coal-to-gas switching in China. The ability to supplement natural gas generation with renewables leads to smaller reductions in Chinese and global economic activity than the alternatives.