Power Sector: Deepening Reform to Reduce Emissions, Improve Air Quality and Promote Economic Growth

China’s power sector is undergoing major changes in order to meet ambitious goals for air quality, renewable energy, and carbon emissions. This paper from the Paulson Institute suggests market-oriented reforms that will help achieve the goals outlined in the government’s “Deepening Reform” policy document. Drawing on international experience and focusing on incentives to align the behavior of power sector firms, the authors recommend ways to boost deployment of renewables and improve energy efficiency.