Technology choice for reducing NOx emissions: An empirical study of Chinese power plants

This study investigates the choices of denitration technology in the Chinese thermal power sector. Using a multinomial logit model of the choices among 1135 boilers in thermal power plants operating in China in 2013, we analyze how the choices were influenced by government policies, the stringency of national standards, and subsidies for using specific technology. The results are as follows. First, China's 12th Five-year Plan might make it more attractive for plants to choose the cheapest denitration technology among the three options examined in this study. Second, technology choices differed significantly by region before the 12th Five-year Plan period. These differences have disappeared, perhaps due to the economic development across all regions of China. Third, electricity price subsidies offered to plants that use denitration equipment might affect their technology choice. These results suggests that plants might choose the cheapest technology available, in order to lower investment costs.