Although Stakeholder Analysis originated from business sciences, it is evolving into a field which now spans a wide range of disciplines, mainly economics, political and
environmental sciences (World Bank, 2017a). Most academic research still regards stakeholders as passive audiences for research results, rather than using their knowledge and expertise to directly identify priority areas and to inform study design (Brugha and Varvasovszky, 2000). The key element of the empirical study is to overcome drawbacks of traditional research. The focus of traditional research is often driven by a narrow or incomplete comprehension of the issue leading to research outcomes that are poorly aligned with the information requirements of real-world decision-makers and disregard the needs of those affected by the decision. Another issue in academic study is research bias, which often prevents the researcher from the unprejudiced consideration of a question (Pannucci and Wilkins, 2010). Research in cultural settings that is different from the environment of the researcher can be particularly challenging. It is often difficult to overcome partiality from pre-conceived ideas shaped by a narrow and selective review of literature and media reports (Keene, 2011).
The main objective of this work is to explore the sustainability issues of China’s energy transition through the eyes of those how are affected. The practice of stakeholder analysis across multiple stages of the research process helps to minimise the divide between the researcher and ‘the objects of his study’. Engagement of the researcher with a set of diverse stakeholders enhances the objectivity, utility and relevance of the analysis.
Stakeholder involvement also creates a level of confidence that the work is responsive to the research and data requirements of the problem under investigation. The engagement with stakeholders provides an opportunity to check whether the research questions asked are relevant.
123 5.1.1 Identification of Study Participants
Research involving stakeholders starts with their identification. Both identification and selection criteria implicitly determine the scope of the research through the selection of the views that will be considered; those inside and those outside the system boundaries.
Prior to identifying study participants, it is important to understand who is considered as a stakeholder. The introduction of the methodological framework highlighted the existence of a plethora of different stakeholder approaches and definitions. It is reiterated here that the study adopts the definition provided by Checkland (1981). He regards stakeholders as active participants in the process of solving a problem, irrespective of their potential to influence the outcome of a solution, their decision making authority or their capacity of getting attention. Contrary to the conventional interpretation of the term36, in Checkland’s definition the boundary between actors and stakeholders becomes blurred as everyone who is affected by a problem is given the opportunity to define the problem and influence its solution.
Despite this open characterisation, the exact definition of the term stakeholder remained problematic over the course of the study. The study initially made a clear distinction between experts and stakeholders. The differentiation between the two groups
determined the type of information sought from either group. Experts were consulted to provide background information on China’s governance system (Interviews 10a, 10b, 16, 17, 26a, 26b, 31a-d, 36) and a more detailed understanding of the wider issues inherent in the sustainability transition of the electricity sector (Interviews 9,10a, 10b, 22, 31, 39).
Knowledge elicited from experts was useful to supplement the insights gained from the literature review. In contrast, stakeholders were involved to better understand the
interests, values and experiences of those directly affected by the introduction of a carbon market through their usage of residential electricity. As the study progressed, practical experience showed that the distinction between stakeholders and experts remained ambiguous. In light of the study’s open definition of a stakeholder ‘as someone who is affected’ the entire adult population of China has a stake in the reform37. Experts are no
36 Most interpretations differentiate between actors and stakeholders. They imply that stakeholders are passive and rely on decision makers to resolve the problem. Some definitions deliberately exclude marginalised individuals as they are unlikely to influence the outcome of an intervention. For example, Lindenberg and Crosby (1981) only considers actors with a role in decision making as stakeholders. Stakeholder analysis revolves around gauging their importance and gathering information about their interest and support for a specified outcome. Overall objective is to eliminate ‘marginal’ ones and to “concentrate (…) attention on those actors (…) who will make the final decisions”. Montgomery (1974) and Brinkerhoff (1991) take a similar approach to stakeholder analysis, which focuses on power relations. A review of literature found that with increasing awareness of equity issues, the term stakeholders was opened up to include those who have an interest or a ‘stake’ in a problem, regardless of the level of influence these groups or individuals have an on a particular outcome (Kaine et al., 2017;Berbés-Blázquez et al., 2016; Engeström et al., 2016).
37China’s electrification rate of 99.7% suggests that almost the entire population has access to electricity. This figure merely reflects connectivity of any electric cable to a home. A number of rural households in remote provinces such as Xinjiang, Sichuan and Qinghai do not have access to a stable and sufficient supply of electricity and rely on off-grid facilities such as small hydro plants (Poon, 2015). Given the relatively small
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longer neutral observers as they themselves are stakeholders (i.e. residential electricity consumers) in the reform.
In some instances, interests were intertwined to an even greater degree. Conflicts of interest presented themselves in circumstances in which professional judgment was at risk of being influenced by a secondary interest, such as financial gain or career advancement.
Some of the experts consulted were convinced of a specific technology and invested heavily in their development and deployment (renewables) (Interviews 46). Employees of state or private organisations with links to the electricity sector or carbon trading formed another group with vested interests in the reform (Interviews 18, 29, 37). Others, such as financial institutions or investment firms, had a financial ‘stake’ in the carbon market (Interview 47).
Diagram 5.1 Generic Causal Model of an Energy Sector
The basis for the identification of stakeholders was the review of literature carried out at the outset of the research. Past studies, policy papers and news reports created awareness
number of households affected and connectivity related issues being outside the scope of this study, it is assumed that all households across China have access to electricity.
125 on the wider issues of the sustainability transition of the Chinese economy, including valuable information on the carbon market-led reform of the energy sector. In an attempt to organise the vast material a generic causal diagram of an energy system was created.
Diagram 5.1 shows the components within the human and environmental systems that are altered by the generation and consumption of energy. Each of the different components affects individuals in one way or another. Linking people to parts of these systems provided a starting point for the discovery of experts and other potential study participants.
The approach adopted for stakeholder identification was introduced in the methodology chapter. Both top-down and bottom-up methods have been employed as part of this study.
A top-down approach was employed to identify individuals, groups or organisations who are directly or indirectly linked to the energy sector. Diagram 5.1 was the starting point for the top-down identification of stakeholders. The systematic way of discovering
stakeholders, in particular experts, appeared useful in complex situations affecting a large system. The omission of certain individuals or groups could result in a poor or partial definition of the problem.
Diagram 5.2 Stakeholders in the Electricity Reform and their Position in the System
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Diagram 5.2 provides an overview of the stakeholder groups that were identified over the course of the study based on the different system components depicted in Diagram 5.1. It quickly became clear that the engagement of stakeholders with expert knowledge in a particular system area could substantially improve the quality of the research by providing context to the insights gained from publications. Analysing the underlying interests of residential electricity users in the reform and encouraging them to contribute to the research also appeared helpful. As discovered during the literature review, there appears to be a gap in research investigating personal views on sustainability issues linked to consumption in China.
The diagram highlights the substantial overlap between the socio-economic and environmental parts of the system. The introduction of a carbon market, a financial instrument, results in an even greater area of intersection between the energy sector and the socio-economic and environmental sectors. Energy related activities affect a wider system area than prior to the establishment of a carbon market, when the government relied on command-and-control measures to control pollution. More individuals and groups in terms of numbers and diversity are affected by the adoption of a market-based approach.
5.1.2 Meeting Practical Challenges of Stakeholder Identification
Stakeholders identified top-down included formal and informal representatives, national or local government authorities, civil society organisations and groups with special interests, the commercial sector and companies as well as academic experts with relevant research interests. About six months into the study a comprehensive list of around 50 organisations, private companies and government bodies were identified as valuable participants to cover the stakeholder categories identified earlier. Names and contact details were located through internet based research carried out in the UK.
Involvement in a project (not related to PhD research) with a Chinese provincial
government to introduce a UK style approach of carbon control offered the opportunity to conduct ”elite interviews” (Harvey, 2010) with government officials and experts in the field of environmental policy as well as other relevant stakeholders, policymakers at national and provincial level (including officials involved in the design of the national carbon market) as well as prominent Chinese academics and scholars involved in environmental and socio-economic policy research.
These contacts led to further introductions to employees and consultants at three of the carbon market pilots, a regional environmental exchange, the Shanghai Stock Exchange, state organisations involved in the energy sector, private carbon off-set companies as well as representatives from various ENGOs (international organisations and smaller local groups). Over time, new stakeholders were identified. The list of experts grew over the period of the study up to the evaluation stage as new individuals and groups with knowledge and interest in the energy sector reform were located.
127 An advantage of reaching the majority of potential study participants by the
recommendation of the researcher’s social networks was that these individuals usually agreed to meet. The referrer initiating the contact was typically in a position of influence, which in China plays a key role in gaining access to people in senior positions. Securing an individual’s commitment to take part in an interview depends on a number of factors ranging from the financial support for the study to the reputation and nature of the organisation and interviewer’s position and level of influence (Yeung, 1995). The limited official support for this research project and the researcher’s limited ability to advance interests of the potential interviewees appeared to have contributed to the ineffectiveness of the cold calling approach, which was adopted in the early stage of the study38.
A drawback of using social networks meant that the process of searching for potential study participants is to a certain degree out of the researcher’s control. The previously conducted top-down identification of key stakeholder groups minimised the element of randomness such an approach could entail. As representativeness across study participants is a key requirement, the personal contacts were provided with clear instructions in terms of the kind of attributes that were expected.
In addition to experts, members of the public, not professionally, politically and
academically linked to the Chinese energy system, were approached with the request to participate in the study. Starting point were acquaintances met during previous visits to China. They were instrumental in the introduction to middle to high income professionals.
Over time, it became apparent that most individuals who agreed to take part in the study were university educated and spoke English. Input from marginalised and so-called ‘fringe stakeholders’ (McCarthy and Muthuri, 2016) had so far been neglected. The poor and those whose views are often considered disruptive by policy makers and other influential or affluent stakeholders seemed to have been excluded from the analysis. To overcome this deficit the decision was made to seek out members of the public representing these groups to obtain their view on sustainability aspects of the current Chinese energy system and its planned reform. Organisers and members of locally registered NGOs and other non-profit initiatives helped with access to interview partners from the migrant worker community in Shanghai, for example. Some of the organisations were involved in activities of raising public awareness on environmental and social issues (Interview 21), while others offered practical solutions to such problems (such as schooling of migrant children (interview 34);
collection and disposal of electronic waste (interview 27). During meetings members of these groups shared many invaluable insights into their work with often very deprived communities located throughout China.
38 As explained in Section 4.5 of the previous chapter Renqing refers to a set of social norms that the Chinese value highly (Wang et al., 2008). Renqinq is the behavioural aspect of Guanxi. Guanxi is a tight knit network of interpersonal relationships (Yeung and Tung, 1996) from which an individual can draw resources or advantages in various social or professional situations (Davies et al., 1995) through the exchange of Renqing, i.e. favours providing mutual benefits (Pearce and Robinson, 2000).
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The majority of interviews with members of the public took place in Shanghai during the initial phase of the study. Later in the research a smaller number of interviews were conducted in the Jingjinji region (Beijing-Tianjin-Hebei).39 It is understood that focus on one geographic area could lead to a certain degree of response bias. In order to mitigate the effect on the outcome of the study, a diverse demographic was interviewed.
By comparing the list of identified expert stakeholders and the list of interviewees it became apparent that in a particular area no interview partner with expert knowledge could be identified or persuaded to take part in the study. As mentioned before, contacting potential interviewees directly was largely unsuccessful. The experience at the beginning of the study was repeated throughout the fieldwork phase. Despite best efforts it proved impossible to recruit interview partners directly involved in the generation and distribution of energy. To at least partially overcome this limitation, experts located in Europe were contacted with the request to participate in the study. Representatives from conventional and green energy providers shared useful information by drawing on their knowledge on the deployment of renewables and (wholesale and retail) price determination in a
liberalised market (Interviews 52, 53). In interviews with carbon trading analysts the most recent developments in the EU ETS and the California-Quebec cap-and-trade program were explored along wider issues of emissions trading in a Western setting (Interviews 51, 54).
5.1.3 Interviewing Process and Data Collection
The main objective of the interviewing stage was to consult experts with diverse knowledge in the sustainability transition of the Chinese electricity sector. Interviews were designed to collect to elicit the views of experts on the sustainability objectives pursued by the ‘New Normal’ – their relevance as well as dependencies and trade-offs between them.
Interviews were conducted in a semi-structured format. Semi-structured interviews, in contrast to fully structured or unstructured interviews, is the most suitable interview type in the early research phase of problem discovery. As explained in the preceding chapter, the open nature of the queries proved a flexible means well suited to explore topics or issues as they emerge. The pre-determined structure allows for a certain degree of consistency to ensure comparability of responses between expert (Bryman, 2008).
A total of 58 meetings with experts took place between March 2013 and July 2016.
Interviews as part of stakeholder consultation were spaced out over the course of three years, which was in keeping with the overall iterative approach of the study. The long time frame of the participatory part of the research was suited to the topic itself. Policies and targets underpinning China’s sustainability transition were subject to change. For instance, the ratification of the 13th Five Year Plan and China’s submission of its Intended Nationally Determined Contributions (INDCs) in preparation for the international climate negotiations in Paris 2016 provided new input. Altogether 56 individuals were interviewed. Some key
39 The Jingjinji region is prone to heavy pollution, mainly from energy intensive heavy industry and coal based power generation. Toxic (above national average) levels of air pollution are common, particularly during the winter months due to a higher demand for energy and regional weather patterns in the (Jia and Wang, 2017).
129 experts such as employees at one of the ETS pilots and experts on Chinese policy were met multiple times over the course of the study.
To gain commitment for participation most expert stakeholders were offered for the interview to be conducted at their work place or in the case of some private individuals it was often proposed to meet at their home or in a public place nearby. Three interviews were carried out via Skype as participants were in a remote location or abroad (outside of China). Some expert interviews took place at an ad-hoc basis during workshops or
conferences. Despite their impromptu nature the interview generally followed the pattern of the pre-arranged meetings. Pre-arranged meetings typically lasted between one and one and a half hours.