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Moving to a sustainable industry and weaning electricity supply off coal are critical to mitigate ambient air pollution and climate change. This is particularly true in China which is globally the largest manufacturer and relies heavily on coal-fired electricity.

Three key knowledge gaps are relevant in this thesis: 1) how much electricity can saved in China’s industries; 2) what is the potential impact of industrial electricity savings on the evolution of electricity supply systems among different power grids; and 3) what is the relationship between electricity use, energy efficiency investments, GHG and air pollution emissions, on various spatial scales.

Given the identified knowledge gaps, the objective of this thesis is to conduct an in-depth analysis of electricity saving potentials and cost-benefits of emission mitigation due to scaling up energy efficiency in industries. Our research targets industrial electric efficiency improvements in China, where electricity supply heavily depends on a coal-fired power plant fleet and faces multiple challenges to a sustainable future. Our research presents that improving energy efficiency in industry can help reshape electricity systems to combat global warming and air pollution cost-effectively, not only in China but for the countries where electricity use is likewise dominated by industry and heavily dependent on coal-based electricity, such as India, Germany, Poland, The Netherlands, and South Africa.

We suggest that national policymakers who aim to co-control air pollutants and carbon emissions through decreasing the dependency on coal-intensive electricity need to recognize the importance of concurrent efforts to improve demand-side electricity use efficiency.