The effectiveness of combined heat and power (CHP) plant for carbon mitigation: Evidence from 47 countries using CHP plants

This paper discusses the impact of combined heat and power (CHP) plants on carbon mitigation and estimates the potential of CHP generation as a bridge to energy transition. A dependent panel analysis with 47 countries using CHP plants from 1990 to 2018 was adopted to find the mitigation impact of CHP generation. The empirical results show that the national share of mixed CHP generation has contributed to carbon mitigation; however, CHP generation has increased carbon emissions. For countries using CHP plants, CHP generation combined with renewable energy has strengthened the impact of carbon mitigation. Although economic activities are primary contributors of carbon emissions, fossil fuel consumption is the main driver of carbon emissions in all empirical models. This study contributes to the literature by illustrating the role of CHP generation as a bridge toward energy transition to achieve sustainable development. Policymakers are recommended to adopt CHP generation in energy mixing and expanding renewable energy, which will lead to a gradual energy transition. Lastly, transitioning energy toward cogeneration from renewable sources should be highly encouraged for sustainable development.