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Financing sustainable energy: Cost-benefit analysis of CO2 reduction in China

Yunping CaoSchool of Economics and Management, Yunnan Technology and Business University, KunMing 651700, ChinaSanjar MirzalievDepartment of Research and Innovations, Tashkent State University of Economics, UzbekistanFadhila HamzaDepartment of Accounting, College of Business Administration, Princess Nourah Bint Abdulrahman University, P.O. Box 84428, Riyadh, 11671, Saudi ArabiaFatima GulzarDepartment of Economics, Ghazi University, Dera Ghazi Khan, Punjab, PakistanJing MingNanjing Normal University, China
Energy Strategy Reviewsjournal2025en
ABI

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Financing sustainable energy initiatives is critical to achieving China's ambitious carbon neutrality goals. This study conducts a cost-benefit analysis of CO2 reduction strategies in China over the period 2010–2023, focusing on integrating renewable energy with innovative retrofitting solutions for combined heat and power (CHP) plants. Two key approaches were analyzed: post-syngas combustion of CO2 from sewage waste gasification and hydrogen combustion in gas turbines without byproduct emissions. Numerical modeling and validation demonstrated that post-syngas combustion could reduce CO2 emissions by up to 30 %, while hydrogen combustion achieved near-zero emissions. The integration of renewable energy sources with these retrofitting solutions improved energy efficiency by 15 % and reduced reliance on conventional fossil fuels. Economic analysis highlighted the financial viability of these technologies, projecting cost recovery within a decade for both solutions. These findings provide actionable insights into sustainable energy financing, showcasing the potential of innovative technologies to accelerate China's energy transition and mitigate climate impacts.

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