How does the implementation of the Policy of Electricity Substitution influence green economic growth in China

Abstract To promote the level of electrification, reduce environmental pollution, and achieve the goal of clean energy usage and green economic growth in China, the National Development and Reform Commission and other eight departments jointly issued and implemented the Policy of Electricity Substitution in 2016. Electricity substitution aims to replace traditional fossil fuels such as coal and fuel oil with clean electric energy in different fields, e.g., industry, transportation, and construction, and deal with the pollutants at power generation. However, we still need to find out the exact impact of the Policy of Electricity Substitution on energy saving and emission reduction. In this paper, we estimate the economically feasible increment of electricity demand according to different classifications in electricity substitution technology. Furthermore, based on the Input-Output model, we discuss the relative influence of the Policy of lectricity Substitution. The main conclusions are: First, the Policy of Electricity Substitution alone is not adequate to reduce the dependence on fossil energy and environmental pollution under China's current power generation structure, we should also increase the use of renewable energy. Second, the power sector plays a leading role in stimulating economic output, and the increasing electricity consumption due to the Policy of Electricity Substitution can boost the green development of China's economy.