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The Sustainability of Energy Systems: Policy, Economy, and Environment

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A special issue of Energies (ISSN 1996-1073). This special issue belongs to the section "A: Sustainable Energy".

Deadline for manuscript submissions: 25 May 2026 | Viewed by 8969

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Special Issue Editor

Dr. Yueting Ding

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Guest Editor

School of Economics, Beijing Institute of Technology, Beijing 100081, China
Interests: energy system resilience; sustainable energy transition; energy and environmental economics

Special Issue Information

Dear Colleagues,

I invite submissions to a Special Issue of Energies on the topic “The Sustainability of Energy Systems: Policy, Economic, and Environment.” As the global energy landscape undergoes profound transformations, the interplay between energy policy, economic development, and environmental sustainability has become increasingly complex and dynamic.

Key governance challenges include navigating geopolitical risks while maintaining energy security, managing the socio-economic disruptions of just transitions, and addressing institutional incompatibilities that hinder nexus approaches in practice. The complexity of energy system transformation demands innovative governance frameworks that can reconcile short-term economic pressures with long-term sustainability goals while ensuring equitable participation in transition processes.

This Special Issue seeks interdisciplinary contributions that examine how policies are shaped by environmental constraints and economic pressures, how economies respond to regulatory and ecological changes, and how governance systems can be redesigned to address conflicts. Here, we can look at multi-level energy policies ranging from national strategic planning and decarbonization targets to market reforms, financial incentives, carbon pricing, and sector-specific regulations. We particularly welcome contributions that critically assess the trade-offs and synergies among these three dimensions in different national, regional, or sectoral contexts.

Topics may include (but are not limited to) the following:

Just transition governance;
Low-carbon energy systems;
Fossil fuel phase-out;
Energy security vs. sustainability trade-offs;
Environmental and economic assessment;
Geopolitical risks in energy policy;
Democratic energy governance;
Resilience under policy uncertainty.

Dr. Yueting Ding
Guest Editor

Manuscript Submission Information

Manuscripts should be submitted online at www.mdpi.com by registering and logging in to this website. Once you are registered, click here to go to the submission form. Manuscripts can be submitted until the deadline. All submissions that pass pre-check are peer-reviewed. Accepted papers will be published continuously in the journal (as soon as accepted) and will be listed together on the special issue website. Research articles, review articles as well as short communications are invited. For planned papers, a title and short abstract (about 250 words) can be sent to the Editorial Office for assessment.

Submitted manuscripts should not have been published previously, nor be under consideration for publication elsewhere (except conference proceedings papers). All manuscripts are thoroughly refereed through a single-blind peer-review process. A guide for authors and other relevant information for submission of manuscripts is available on the Instructions for Authors page. Energies is an international peer-reviewed open access semimonthly journal published by MDPI.

Please visit the Instructions for Authors page before submitting a manuscript. The Article Processing Charge (APC) for publication in this open access journal is 2600 CHF (Swiss Francs). Submitted papers should be well formatted and use good English. Authors may use MDPI's English editing service prior to publication or during author revisions.

Keywords

sustainable energy systems
energy policy and governance
environmental economics
energy justice
energy security
energy affordability
carbon pricing and regulation
clean energy investment
policy–economy–environment nexus
climate and energy strategy

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Published Papers (9 papers)

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Research

Jump to: Review

35 pages, 6029 KB

Open AccessArticle

Does It Really Reduce Emissions? Full-Chain Life Cycle Emission and Economic Benefits Analysis of New Energy Vehicles in China

by Kailing Bai and Huiyu Zhou

Energies 2026, 19(9), 2168; https://doi.org/10.3390/en19092168 - 30 Apr 2026

Viewed by 217

Abstract

Scientific assessment of energy conservation, emissions reduction, public health externalities, and economic costs is crucial for the sustainable development of new energy vehicles (NEVs). Despite minimal emissions during the operational phase of NEVs, the production process of energy, such as electricity and hydrogen, contributes to pollution across the full supply chain, shifting environmental and health burdens to upstream sectors and raising concerns about the overall societal benefits. To address this, we apply a full-chain life cycle assessment (FC-LCA) framework that integrates emissions from vehicle production, energy supply, and end-of-life stages, while simultaneously quantifying health-related mortality attributable to key pollutants. By incorporating upstream energy production structure and downstream industry emissions, this approach captures the complete energy supply chain and enables a systematic comparison between NEVs and conventional vehicles. We further employed and compared ARIMA, LSTM, and Bi-LSTM models to forecast future vehicle demand and defined different forecasting scenarios for China’s passenger vehicle sector. Results provide policy-relevant insights for decision-makers to make informed policy choices concerning the widespread implementation of NEVs in a sustainable manner. Full article

(This article belongs to the Special Issue The Sustainability of Energy Systems: Policy, Economy, and Environment)

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20 pages, 1005 KB

Open AccessArticle

Evaluating the Sustainability of Urban Energy Systems: A Policy-Economic-Environmental Analysis of the APPA in China’s ‘2+26’ Cities

by Bingqi Zhang, Luyuan Tang and Haotian Zhang

Energies 2026, 19(7), 1802; https://doi.org/10.3390/en19071802 - 7 Apr 2026

Viewed by 370

Abstract

In the context of global energy system transformation and the pursuit of regional sustainability, China’s Air Pollution Control and Prevention Action Plan (APPA) targets both pollution reduction and carbon mitigation, serving as a critical policy instrument for coordinating the energy-economy-environment nexus in the “2+26” cities. This study employs a quasi-natural experiment with a difference-in-difference (DID) method to assess the synergistic impact of this energy-related policy on these cities. Results show that APPA significantly reduces PM2.5 and carbon emissions by 5.56% and 9.89%, respectively, demonstrating a successful alignment of short-term environmental targets with long-term decarbonization goals. Heterogeneity analysis reveals that large cities with higher institutional capacity are more effective in reducing both pollutants, while resource-based cities achieve more PM2.5 reduction, and non-resource-based cities excel in low-carbon energy transition. Mechanism analysis indicates that APPA promotes these outcomes by optimizing the energy-intensive industrial structure and fostering green technological innovation. This study highlights the effectiveness of integrated governance frameworks in enhancing air quality and reducing carbon emissions, providing crucial insights for redesigning sustainable energy policies and managing the socio-economic disruptions of just transitions in rapidly developing regions. Full article

(This article belongs to the Special Issue The Sustainability of Energy Systems: Policy, Economy, and Environment)

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21 pages, 1520 KB

Open AccessArticle

Research on Provincial-Level High-Quality Energy Development Assessment and Transition Pathways in China

by Zhanjun Chai, Chenguang Li, Zemin Chang, Yang Li, Xiaofeng Xu, Dunnan Liu and Yao Tao

Energies 2026, 19(6), 1516; https://doi.org/10.3390/en19061516 - 19 Mar 2026

Viewed by 367

Abstract

China’s dual-carbon targets necessitate a transition toward a greener, safer, and more efficient energy system; however, substantial disparities persist across provinces. This study evaluates high-quality energy development across 30 Chinese provinces (2011–2022) under the dual-carbon agenda and identifies differentiated transition pathways. Using a PCA-TOPSIS framework with regional pattern classification, we find an “east-high, west-low, central-dip” spatial structure and a nationwide improvement trend over time. Beijing and Guangdong remain persistent leaders, whereas the central region is the primary weak link. Green energy and energy innovation are the strongest contributors to provincial performance, highlighting the importance of clean supply and technological capability. Policy implications emphasize differentiated approaches: strengthen innovation leadership in the east, accelerate structural upgrading and clean substitution in central and resource-dependent provinces, and improve infrastructure and market integration to unlock renewable advantages in the west. Full article

(This article belongs to the Special Issue The Sustainability of Energy Systems: Policy, Economy, and Environment)

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25 pages, 2436 KB

Open AccessArticle

Industrial Waste Heat Utilization Potential in China: Measurement and Impacts on Carbon Peaking and Carbon Neutrality Pathways

by Shuang Xu, Haitao Chen, Yueting Ding, Jingyun Li and Zewei Zhong

Energies 2026, 19(2), 292; https://doi.org/10.3390/en19020292 - 6 Jan 2026

Viewed by 798

Abstract

As the goal of carbon peak and carbon neutrality becomes a global consensus, the circular economy is gradually evolving from an environmental concept to a core lever for national strategy and industrial transformation. To achieve green and low-carbon development, China is accelerating the construction of a circular economy system, particularly in the fields of resource recycling and utilization. Industrial waste heat, a strategically critical supplementary energy resource, performs a pivotal role in advancing the circular economy. Based on an energy technology coupling model, this study assesses the waste heat utilization potential in China and quantitatively measures its impact on energy conservation and carbon reduction. The results show that: (1) The potential of industrial waste heat in China is characterized by an inverted U-shaped trajectory. Over the near-to-medium term, the steel and power industries remain the primary contributors to waste heat utilization potential. (2) Low-grade waste heat represents the majority of utilization potential in China’s industrial sector, mainly from power generation, fuel processing, and steel manufacturing. The model results indicate that the proportion of low temperature waste heat will increase from approximately 66% in 2025 to 83% in 2060. (3) Waste heat utilization significantly influences the energy transition pathway. The findings of this study demonstrate that energy-intensive industries have the potential to reduce primary energy consumption by more than 13%. Moreover, making full use of waste heat could accelerate China’s carbon peaking target to 2028, and reduce peak carbon emissions by an estimated 5.1%. Full article

(This article belongs to the Special Issue The Sustainability of Energy Systems: Policy, Economy, and Environment)

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19 pages, 2259 KB

Open AccessArticle

Flexibility Incentive Market Mechanism for Combined Frequency Regulation and Electricity Markets for the Power System with Distributed Energy Resources Aggregators via Modified Leiden Algorithm

by Xiaoyan Hu, Zesen Li, Jing Shi, Bingjie Li, Yi Ge and Hu Li

Energies 2025, 18(23), 6231; https://doi.org/10.3390/en18236231 - 27 Nov 2025

Viewed by 993

Abstract

Distributed energy resources provide local power as a supplement on the customer side. Recent rapid development of the distributed energy source enhances the clear energy production at the terminal of the power system. Whereas the small capacity of a single distributed energy source and the scaling of numbers pose difficulties for market design and clearance. In addition, the stochastic and quickly varying output power of the amount of (distributed) renewable energy sources increases the necessity for flexible regulation capacities. In response to the above issues, this paper develops a modified Leiden algorithm to aggregate distributed energy sources with similar regulation properties and connectives, avoiding complex power allocation strategies within the intra-aggregator and ensuring ordered power flow among inter-aggregators. Then, a bi-level market mechanism is proposed to highlight the regulation contributions of both distributed aggregators and conventional energy sources. The upper-level model optimizes the price of combined frequency regulation and electricity markets. The lower-level model regulates the output power of the aggregators and conventional energy sources. Furthermore, the modification of the bi-level model is proposed via the Karush–Kuhn–Tucker condition to ensure its solvability. The proposed market mechanism and the aggregating method are verified using a modified IEEE 30-bus system with IEEE 123-node test feeders and terminal-side energy resources. The results reflect the incentive impacts of the designed market mechanism and the effectiveness of the aggregating algorithm. Full article

(This article belongs to the Special Issue The Sustainability of Energy Systems: Policy, Economy, and Environment)

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30 pages, 6209 KB

Open AccessArticle

Unraveling the Surrounding Drivers of Interprovincial Trade Embodied Energy Flow Based on the MRIO Model: A Case Study in China

by Wen Wen, Yijing He, Yang Zhang, Weize Song and Yujuan Fang

Energies 2025, 18(19), 5222; https://doi.org/10.3390/en18195222 - 1 Oct 2025

Viewed by 1008

Abstract

To achieve the carbon neutrality target, China has proposed “dual control” policies on provincial energy consumption. However, inter-provincial trade drives significant embodied energy flows beyond local demand. How do we identify key energy consumers driving through other provinces? And how does energy, especially from coal, flow to other provinces? Current studies analyzed regional and sectoral energy flow, which are always separated. And seldom was attention paid to coal flow. Intending to identify the critical energy-consuming province in China and investigate how energy and coal flow out from it, this study applied the EE-MRIO model to measure energy and coal embodied in provincial trades. The results suggest the following: (1) The energy embodied in provincial trade was mostly from energy-rich regions to provinces that lacked energy but had developed economies. Shanxi is a critical embodied-energy export province; (2) neighboring provinces and economically developed provinces drive the most embodied energy from Shanxi, and embodied energy mainly flows from the energy sectors and high-energy-intensity sectors; and (3) the provincial and sectoral coal flow in Shanxi presents consistent characteristics of embodied energy flow. We contributed to understanding the energy equity affected by embodied energy flow and propose energy consumption as a relieving measure. Full article

(This article belongs to the Special Issue The Sustainability of Energy Systems: Policy, Economy, and Environment)

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17 pages, 2181 KB

Open AccessArticle

Sustainability Analysis of the Global Hydrogen Trade Network from a Resilience Perspective: A Risk Propagation Model Based on Complex Networks

by Sai Chen and Yuxi Tian

Energies 2025, 18(15), 3944; https://doi.org/10.3390/en18153944 - 24 Jul 2025

Cited by 1 | Viewed by 1095

Abstract

Hydrogen is being increasingly integrated into the international trade system as a clean and flexible energy carrier, motivated by the global energy transition and carbon neutrality objectives. The rapid expansion of the global hydrogen trade network has simultaneously exposed several sustainability challenges, including a centralized structure, overdependence on key countries, and limited resilience to external disruptions. Based on this, we develop a risk propagation model that incorporates the absorption capacity of nodes to simulate the propagation of supply shortage risks within the global hydrogen trade network. Furthermore, we propose a composite sustainability index constructed from structural, economic, and environmental resilience indicators, enabling a systematic assessment of the network’s sustainable development capacity under external shock scenarios. Findings indicate the following: (1) The global hydrogen trade network is undergoing a structural shift from a Western Europe-dominated unipolar configuration to a more polycentric pattern. Countries such as China and Singapore are emerging as key hubs linking Eurasian regions, with trade relationships among nations becoming increasingly dense and diversified. (2) Although supply shortage shocks trigger structural disturbances, economic losses, and risks of carbon rebound, their impacts are largely concentrated in a limited number of hub countries, with relatively limited disruption to the overall sustainability of the system. (3) Countries exhibit significant heterogeneity in structural, economic, and environmental resilience. Risk propagation demonstrates an uneven pattern characterized by hub-induced disruptions, chain-like transmission, and localized clustering. Accordingly, policy recommendations are proposed, including the establishment of a polycentric coordination mechanism, the enhancement of regional emergency coordination mechanisms, and the advancement of differentiated capacity-building efforts. Full article

(This article belongs to the Special Issue The Sustainability of Energy Systems: Policy, Economy, and Environment)

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Review

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22 pages, 1076 KB

Open AccessReview

Global Renewable Energy Certificate (REC) Systems: Current Status and Development Trends

by Shangheng Yao, Xuan Zhang, Xi Liu, Haijing Wang, Yuan Leng, Yuanzhe Zhu, Nan Shang, Guori Huang, Shutang Zhang, Rentao Ouyang, Jincan Zeng, Qin Wang and Rongfeng Deng

Energies 2026, 19(5), 1122; https://doi.org/10.3390/en19051122 - 24 Feb 2026

Viewed by 1085

Abstract

Renewable Energy Certificates (RECs) have emerged as critical market-based policy instruments to promote renewable energy development worldwide. This comprehensive review examines the theoretical foundations, market mechanisms, policy effectiveness, and challenges of global REC systems based on extensive international experiences spanning over two decades. RECs function by separating the environmental attributes of renewable electricity from its physical energy, creating flexible trading mechanisms that effectively channel private investment toward renewable energy projects while providing compliance tools for renewable portfolio standards. Our analysis reveals significant variations in design and implementation across major markets, including the United States, European Union, China, India, Australia, and emerging economies. Despite their widespread adoption with over 50 countries implementing various forms of REC mechanisms, these markets face persistent challenges including price volatility, limited liquidity, regulatory inconsistencies, and ongoing debates about their environmental additionality. Recent technological developments, particularly blockchain-enabled tracking systems and digital platforms, are reshaping REC markets by enhancing transparency, reducing transaction costs, and enabling smaller-scale participation. This review proposes corresponding recommendations from the dimensions of optimizing market design, promoting digital transformation and product diversification, and establishing international coordination mechanisms. Full article

(This article belongs to the Special Issue The Sustainability of Energy Systems: Policy, Economy, and Environment)

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29 pages, 738 KB

Open AccessReview

Toward Low-Carbon Power Systems: Reviewing Life Cycle Carbon Footprints of Diverse Generation Pathways

by Xu Wang, Li Guo, Guiyuan Xue, Jian Tan, Wenjuan Niu and Yin Wu

Energies 2025, 18(24), 6413; https://doi.org/10.3390/en18246413 - 8 Dec 2025

Cited by 2 | Viewed by 2268

Abstract

Electricity generation is the largest contributor to anthropogenic greenhouse gas (GHG) emissions. This review synthesizes life cycle assessment (LCA) evidence for major power generation technologies published from 2015 to 2025. Using a structured screening approach, it identifies consistent cross-technology patterns and the methodological factors driving variation in reported results. Unabated coal and oil show the highest life cycle intensities; natural gas varies widely with methane management; and nuclear, geothermal, hydropower, wind, and solar power generally fall one to two orders of magnitude lower. Differences arise mainly from upstream processes, siting conditions, and system boundary definitions. Key mitigation levers include plant efficiency improvements, methane abatement, carbon capture and storage (CCS), and low-carbon manufacturing. The review also highlights how emerging policies—including the EU Carbon Border Adjustment Mechanism (CBAM) and China’s carbon-footprint standards—are integrating life cycle and Scope-2 accounting. Standardized, AR6-aligned LCA practices and transparent upstream data remain essential for credible, comparable electricity-sector decarbonization. Full article

(This article belongs to the Special Issue The Sustainability of Energy Systems: Policy, Economy, and Environment)

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