Author(s)

Yin Qi

Corresponding Author

Yin Qi

ABSTRACT

The climate change brought by the burning of fossil fuels calls for the development of alternative energy sources, from which hydrogen power has gradually enters public’s vision. The purpose of this study is to investigate into the benefits and drawbacks of hydrogen as a alternative fuel, the manifold challenges that China’s hydrogen market faces, as well as an analysis of the prospect of hydrogen becoming a full-fledged industry in the next decades from a technological and policy perspective. This paper concluded that hydrogen subsidy is essential due to hydrogen power's PCE and learning potential. However, it should be adjusted over time, and the effect of different market structures should be examined while deciding on preventative actions. Besides, due to various benefits, hydrogen stands out as an attractive option. Via technological advancements and supporting policies, a sound hydrogen energy system which encompasses production, transportation, and end use would boost energy security when executed effectively. Investors, stakeholders, and policymakers who have an interest in the matter of mass-producing and eventually commercializing hydrogen in China will reap the benefit of its findings.

KEYWORDS

Hydrogen power, Climate change, PCE