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Fuel cell vehicle and battery electric vehicle are two environmentally benign vehicle technology types possibly meeting the zero-emission regulations in the future. The premise is they can achieve parity with conventional vehicle both environmentally and economically. Besides, it is necessary to distinguish which technology is more suitable in China's current and future context. This paper compares their cost-effectiveness for reducing greenhouse gas emissions, examining the life-cycle greenhouse gas emissions of conventional gasoline vehicle, battery electric vehicle and fuel cell vehicle in China's energy context under three different scenarios. The results indicate that under the 500km drive range, fuel cell vehicles are less competitive than battery electric vehicles currently. Fuel cell vehicles generate much more greenhouse gas emissions than battery vehicles and conventional gasoline vehicles.

In order to address the increasing energy and environmental concerns, China and the US both launched the fuel economy regulations and aim to push the development of technology. In this study, the stringency of CAFC and CAFE regulations and the technology development of two countries are compared. Besides, the optimal technology pathways of America and automakers for the compliance of CAFE regulations are calculated based on the modified VOLPE model, and the results are used as reference for China. The results indicate that the annual regulation improvement rates of China is higher than America and the AIR of China 2015-2020 regulation reaches 6.2% and is the most stringent phase in 10 years from 2015 to 2025. From the perspective of technology, there are still big gaps between China and the US in the applications of advanced fuel saving technologies.

Electric vehicles maintain the fastest development in China and undertake the responsibility of optimizing energy consumption and carbon emission in the transportation field. However, from the entire life cycle point of view, although electric vehicles have a certain degree of energy consumption and carbon emission reduction in the use phase, they cause extra energy consumption and carbon emission in the manufacturing phase, which weakens the due environmental benefits to some extent. The recycling of electric vehicles can effectively address the issue and indirectly reduce the energy consumption and carbon emission in the manufacturing phase. China is setting up the recycling system and strengthening regulation force to achieve proper energy consumption and carbon emission reduction benefits of electric vehicles. Under the current electric vehicle recycling technologies, China can reduce about 34% of carbon emission in electric vehicle manufacturing phase.

Both the economy and energy demand increase rapidly in China. The government is facing severe problems from energy security, carbon emissions and environmental issues. The past trends and future plans of energy will have great influence on the transportation, construction and industry development. This paper summarizes the present and future energy structure in China. Conventional fossil energy, nuclear energy and renewable energy are all included. Electricity will account for more proportion in total energy consumption in the future, and the structure of electricity will be cleaner. That will promote the development of electric vehicles and the transformation of China’s automotive industry. The optimization of energy structure will accelerate the low-carbon development in China. China’s energy development will enter a new stage from the expansion of total quantity to the upgrading of quality and efficiency.