Quantifying the co-benefits of energy-efficiency policies: A case study of the cement industry in Shandong Province, China

• We quantify the co-benefits of PM10 and SO2 emission reductions.
• We quantify the co-benefits from energy-saving in China's cement industry.
• 40% cost effective PM and SO2 emission reduction for electricity-saving measures
• Including health benefits reduced the cost of the fuel-saving measures.
• Product change measures result in the largest reduction in cost when co-benefit

In 2010, China's cement industry accounted for more than half of the world's total cement production. The cement industry is one of the most energy-intensive and highest carbon dioxide (CO2)-emitting industries, and thus a key industrial contributor to air pollution in China. For example, it is the largest source of particulate matter (PM) emissions in China, accounting for 40% of industrial PM emissions and 27% of total national PM emissions. In this study, we quantify the co-benefits of PM10 and sulfur dioxide (SO2) emission reductions that result from energy-saving measures in the cement industry in Shandong Province, China. We use a modified form of the cost of conserved energy (CCE) equation to incorporate the value of these co-benefits. The results show that more than 40% of the PM and SO2 emission reduction potential of the electricity-saving measures is cost effective even without taking into account the co-benefits for the electricity-saving measures. The results also show that including health benefits from PM10 and/or SO2 emission reductions reduces the CCE of the fuel-saving measures. Two measures that entail changing products (production of blended cement and limestone Portland cement) result in the largest reduction in CCE when co-benefits were included, since these measures can reduce both PM10 and SO2 emissions, whereas the other fuel-saving measures do not reduce PM10.