SUSTAINABILITY ASSESSMENT AND INDICATOR DEVELOPMENT: THE ELECTRICITY SYSTEM IN DALIAN, CHINA by Hendrik Rosenthal A thesis presented to the University of Waterloo in fulfillment of the thesis requirement for the degree of Master of Environmental Studies in Environment and Resource Studies Waterloo, Ontario, Canada, 2004 © Hendrik Rosenthal 2004 Author’s declaration for electronic submission of a thesis I hereby declare that I am the sole author of this thesis. This is a true copy of the thesis, including any required final revisions, as accepted by my examiners. I understand that my thesis may be made electronically available to the public. iii ABSTRACT Electricity is used all over the world as a basic source of energy, essential for lighting, powering basic appliances and tools, as well as many other technologies important for today’s societies. Electricity is produced, transmitted and distributed to consumers with a range of resources and technologies, resulting in a process that has impacts on sustainability. This thesis examines the interconnections among production, regulation and consumption of electricity, investigating the sustainability of the electricity system broadly defined. Under auspices of the Ecoplan China project, a case study approach is used to assess the sustainability of the electricity system in Dalian, China. Gibson (2002a) argues that sustainability ought to be conceptualized as a set of requirements, which are outlined as principles of sustainability. These principles, in this thesis, form the basis for a Sustainability Assessment of the electricity system in Dalian. The principles provide the analytical framework for reviewing the literature that discusses electricity in sustainability terms and in relation to China. Gibson’s conception of sustainability is broad and does not provide guidance on specific procedures for conducting a Sustainability Assessment. The sustainability principles operate on complex systems theory and on the principle of integration, resulting in limitations for their practical application. More specifically, Gibson’s principles are operationalized with electricity assessment indices derived for use in the study of Dalian. Relevant indicators are selected based on these indices. This work is exploratory in nature, as it tests the utility of the sustainability principles for assessment and indicator development. The electricity infrastructure and system regulations relevant for Dalian were reviewed, while local consumer attitudes in relation to electricity were also examined. Dalian is dependent on coal as the primary source of electricity. Production infrastructure also includes a limited supply of wind power. A nuclear plant is being constructed in the region to reduce the need for future expansion of coal-based electricity production. The local grid infrastructure has been improved in recent years to increase efficiency of electricity transmission and to ensure that all residents have access to a reliable supply of electricity. Industrial growth and restructuring has increased the demand for electricity. The local regulatory environment is based on a centralized structure, with much input coming from provincial and state government bodies. Local consumer attitudes were investigated with a survey, in order to shed light on how sustainability and electricity are manifested in Dalian residents. This information is qualified in sustainability terms and relevant indicators are derived. The research is intended to start discussion in Dalian for developing a framework for evaluating sustainability of the electricity system and on sustainable development in general. The study supports Dalian’s goal for becoming an eco-city and the results provide recommendations for further study of Dalian’s electricity system. Dalian has taken steps to improve the electricity system, but a clear strategy to develop long-term sustainability is necessary. In coordination with local experts and government representatives, Ecoplan China is in a good position to further extend research for developing sustainability-based policy and planning tools for Dalian. iv ACKNOWLEDGEMENTS My gratitude goes out to Prof. Susan Wismer for her unrelenting support as my thesis supervisor. She stimulated my intellectual capacities, skilfully fostered my academic abilities, and believed in my success. Prof. Ian Rowlands added essential insights and provided feedback at lightning speed, while maintaining humour and a human touch. Without his involvement this thesis would not have been possible. The feedback provided by my external reader, Prof. Mark Seasons, was much appreciated. His objective commentary facilitated mutual learning, both for the purpose of this thesis and related future work. Financial assistance for the field work was made possible through CIDA and Ecoplan China. The University of Waterloo Graduate Studies Office and the Environment and Resource Studies Department, as well as the Ontario Graduate Scholarship (OGS) program provided for my livelihood during my period of study. I am grateful for this extensive support network. Special recognition goes out to the Ecoplan China team in Waterloo, Dalian, Nanjing and Hainan. In particular, I would like to thank Prof. Geoff Wall and Prof. David Wood for their advice and support throughout this exploratory work. The assistance of Prof. Geng Yong and Prof. Wu Chunyou from Dalian University of Technology made the field work possible and proved to be essential for data collection. The help of my Chinese friends also needs to be acknowledged, in particular the guidance of Zhao Qinghua, Zhao Yiping and Ms. Ko. Without their interpretative assistance and patience the haze surrounding Chinese culture and customs would have continued to cloud my foreign eyes. I would also like to express my sincere thanks to all the research participants, in particular the interviewees who took the time to talk with me and the residents of Dalian who answered my survey questions. I would also like to express gratitude to my fellow graduate students and the ERS community. They offered friendship and fulfilling personal relationships over the last two year and made sure that I stayed on track. Last but not least, I would like to thank my parents and family. Without their help and support I would not be where I am today. 谢谢你 罗汉卿 v DEDICATION …to my family vi TABLE OF CONTENTS ABSTRACT.................................................................................................................................. iv ACKNOWLEDGEMENTS ..........................................................................................................v DEDICATION ............................................................................................................................. vi TABLE OF CONTENTS ........................................................................................................... vii LIST OF FIGURES.......................................................................................................................x LIST OF TABLES.........................................................................................................................x LIST OF ACRONYMS ............................................................................................................... xi 1 INTRODUCTION ......................................................................................................................1 1.1 Background on Energy and Electricity .............................................................................1 1.1.1 Defining Energy and Electricity.................................................................................1 1.1.2 Understanding Electricity...........................................................................................2 1.2 Research Rationale ..............................................................................................................3 1.2.1 Ecoplan China..............................................................................................................6 1.2.2 General Approach .......................................................................................................6 1.3 Sustainability Assessment and Indicators .........................................................................7 1.3.1 Principles of Sustainability and Sustainability Assessment ....................................7 1.3.2 Sustainability Indicators.............................................................................................8 1.3.3 Limitations and Applications .....................................................................................8 1.4 Research Questions............................................................................................................10 1.5 Organization of the Thesis ................................................................................................10 2 OPERATIONALIZING SUSTAINABILITY ASSESSMENT AND INDICATORS FOR ELECTRICITY SYSTEMS........................................................................................................11 2.1 Sustainability Assessment .................................................................................................11 2.1.1 Assessment Tools in Context ....................................................................................13 2.1.2 Sustainability Assessment in Context......................................................................16 2.1.3 Principles of Sustainability.......................................................................................17