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Currently, the reform of electricity cross-subsidies on the sales side is a crucial task in the market-oriented process. The resulting electricity prices, which reflect the true value, can not only enhance resource allocation efficiency but also contribute to increased carbon emissions. Consequently, it is imperative to actively pursue carbon trading policies to address this issue. In this study, we examined the reformed electricity prices for industrial and residential users by applying the Ramsey pricing model. Moreover, a recursive dynamic computable general equilibrium model is employed to analyze the carbon emissions and economic performance of the cross-subsidy reform under different settings of the quota decline scheme, quota allocation mode, and penalty mechanism within the carbon emissions trading scheme. The results demonstrate the following findings: (1) The calculated Ramsey prices for industrial and residential users are 0.541 and 0.792 yuan/kWh, respectively. (2) Implementation of the electricity cross-subsidy reform can lead to a significant increment in CO2 emission. However, it effectively improves national economic and social development and promotes the growth of gross domestic product, industrial output, and changes in residential consumption expenditure structure. (3) Carbon trading proves to be an effective means to achieve carbon emission reduction at a lower economic cost after the reform. Notably, the degree of impact is more sensitive to the carbon decline factor. [ABSTRACT FROM AUTHOR]

Renewable Portfolio Standards (RPS) and carbon emission trading (CET) system are the top-level system design of China's energy low-carbon transformation, which have great strategic significance for realizing the "carbon peak in 2030 and carbon neutrality in 2060". At present, China's tradable green certificates market and CET market are still in the initial stage. The implementation single system may have diverse trials and errors in its initial stage, and the market activity and transaction frequency are low. Therefore, this paper aims to explore whether the synergistic effect between the two systems can effectively promote China's energy low-carbon transformation. This paper establishes the system dynamic model of the synergistic effect between the RPS and CET in China's electricity market to reveal the influence mechanism and the synergistic effect. The results show that: (1) There is a positive synergistic effect between the RPS and CET, which will change with the institutional parameters. (2) The simultaneous implementation of the RPS and CET can effectively stimulate market vitality and promote the development of the renewable energy industry. (3) Higher quota and lower benchmark price can optimize power source structure, and improve social welfare and institutional performance. [ABSTRACT FROM AUTHOR]

A renewable portfolio standard is implemented to promote the development of renewable energy at a minimum cost through tradable green certificate market mechanism. Formulating a scientific and feasible renewable energy quota allocation scheme helps RPS function smoothly and optimize resource allocation. This paper proposed a bi-level programming model combined with entropy weight method to allocate renewable portfolio standard quotas with provincial heterogeneity and stakeholders' behavior, and an optimized quota allocation scheme among China's 30 provinces in 2020 was obtained. By comparing with the government's issued scheme, the following were the results under the optimized scheme: (1) Quotas in most provinces have increased, and the responsibility for renewable electricity generation is shared with the provinces with developed economy and well-constructed transmission facilities, where electricity producers can meet the quotas by purchasing tradable green certificate. (2) Quota allocation has positive effects on energy, economy, and environment. Specifically, the non-hydro renewable electricity generation increased by 43.8%, the non-hydro renewable electricity producers' profit increased by 18.4%, and the environmental pollution cost reduced by 27.9%. (3) Quota allocation equity measured by the environmental Gini coefficient increased by 14.3%. Based on these findings, some policy implications related to quota allocation and renewable portfolio standard's institutional arrangement have been put forward. [ABSTRACT FROM AUTHOR]

To cope with global climate change and energy security, the realization of the low-carbon energy transition has become an inevitable choice for international carbon emission reduction requirements and energy structure adjustment. Vigorously developing renewable energy has become an essential part of energy policies in many countries. Under the incentive and guidance of renewable energy industry policy, China's renewable energy has developed rapidly, and energy structure has been optimized. However, many problems have been exposed. Can China's renewable energy industry policy effectively support low-carbon energy transition? This paper uses the method of theoretical analysis, combining literature analysis and data analysis. Based on the analysis of renewable energy policies in countries with relatively mature energy transitions, it analyzes the status quo, implementation effect, and problems of renewable energy policy in China and proposes policy suggestions. According to the research, the existing problems are as follows: (1) diminishing marginal effect of policies, (2) policy adjustment is not timely and lacks details and operability, (3) coordination conflicts between the old and new policies, (4) unreasonable policy supply structure, and (5) the negative impact of subsidy policy is increasing. Therefore, this paper argues that China's renewable energy industry policy cannot effectively support the low-carbon energy transition. [ABSTRACT FROM AUTHOR]

To combat climate change, the Chinese government has implemented a package of policies to support the development of the biogas power generation industry. However, the promotion of biogas power generation technology in China is relatively slow. Therefore, it is of practical significance to study the promotion of biogas power generation technology against the background of policy support. In order to study the effect of policy on the promotion of biogas power generation technology, a system dynamics model is constructed in this paper. The results show that under the feed-in tariff subsidy policy, biogas power generation technology can be well promoted because it has good economic and environmental effects. In addition, if the biogas power generation technology is considered to participate in carbon emission trading, the carbon price also has a positive impact on the promotion of biogas power generation technology because it increases the perceived economic value of biogas power generation projects. Finally, this study can also provide reference value for the promotion of biogas power generation technology in other areas. [ABSTRACT FROM AUTHOR]

With the process of economic transformation and structural adjustment, low-carbon development has become an intrinsic and realistic demand for China's national economic and social development. This paper builds a system dynamic (SD) model of China's low-carbon development based on the internal influencing mechanisms of carbon sources, carbon flows, and carbon sinks, and then explores the impact of carbon sources, carbon flows, and carbon sinks system on carbon emissions under different scenarios. The model in our study is effective and practical, and it can not only clearly demonstrate the interaction mechanism between various systems but also provide effective policy recommendations for policymakers. The results show that (1) with the steady growth of the economy, China's total energy consumption and carbon emissions have increased significantly. By 2025, the total energy consumption will reach 628 798 ten thousand tons, and the carbon emissions will reach 689 257 ten thousand tons; (2) as for energy and industrial structure, on the one hand, energy restructuring is more effective in reducing carbon emissions than is industrial restructuring; (3) carbon sinks also play an important role in reducing greenhouse gas emissions. [ABSTRACT FROM AUTHOR]

To better address climate change and environmental pollution, it is of great practical significance to comprehensively evaluate the impact of low-carbon energy transition policies on carbon emission reduction. This paper conducts a policy quantitative evaluation of low-carbon energy transition policies from three dimensions: policy intensity, policy objective, and policy instrument. On this basis, the ridge regression model is used to analyze the carbon emission reduction effect of policies. The results show that (1) changes in policy quantities mainly cause the evolution of total policy effectiveness. The government's emphasis on low-carbon energy transition has fluctuated. (2) The two policy objectives of optimizing the use of fossil energy and developing a low-carbon concept are less synergistic with other policy objectives and neither has a significant impact on carbon reduction. (3) The government prefers to adopt command control policy instruments, but their actual carbon emission reduction effects are inferior to that of economic incentive policy instruments. These findings can provide a decision-making basis for the government to further formulate and optimize policies. [ABSTRACT FROM AUTHOR]

Currently, China is facing severe pressure of environmental emission reduction. As a kind of clean energy, waste-to-energy technology has the advantages of renewability, low pollution, and stable supply. To establish an affordable, effective, and sustainable waste disposable method is critical for the low carbon society transition. Therefore, the innovation diffusion of waste incineration power technology is a problem worth studying. Based on this, in order to answer this question scientifically, this paper constructs a system dynamics model of innovative diffusion, and analyzes the internal mechanism of innovation diffusion. The results show that firstly, the government support policies have a positive influence on the innovation and diffusion of waste incineration power technology; secondly, compared with the R&D policy, feed-in tariffs policy is more efficient to expand the installed capacity of waste incineration power; At last, technological innovation caused by government support policies is the main driving force of waste incineration power industry investment cost reduction. [ABSTRACT FROM AUTHOR]

China's foreign direct investment is an important driving force for economic growth, which also aggravates carbon emissions. Based on China's provincial panel data from 2003 to 2018, this paper uses the panel-fixed effect model and panel threshold model to explore the impacts of two-way foreign direct investment on carbon emissions and analyze the threshold effects of different environmental regulations. The empirical results show that inward foreign direct investment (IFDI) has a significant inhibitory effect on carbon emissions, while outward foreign direct investment (OFDI) leads to the aggravation of carbon emissions. Considering regional heterogeneity, environmental regulation in high-carbon areas mainly affects local OFDI, and environmental regulation in low-carbon areas mainly inhibits carbon emissions by affecting IFDI. In addition, high-carbon regions can achieve the inhibition of OFDI on carbon emissions by strengthening command-and-control regulation and reducing the promotion of OFDI on carbon emissions by strengthening market incentive regulation and voluntary regulation. Meanwhile, excessive command-and-control regulation and market incentive regulation in low-carbon areas bring unexpected regulatory effects, but the inhibitory effect of IFDI on carbon emissions can be increased by strengthening voluntary regulation. [ABSTRACT FROM AUTHOR]

Renewable Portfolio Standards (RPS) is a mandatory institutional change to promote low-carbon energy transformation and renewable energy development. Its successful implementation requires the scientific design of relevant incentive mechanisms and rules. To make up for the defects in the current RPS mechanism design and the problems exposed in the Tradable Green Certificate (TGC) market, this paper takes China as an example and uses the system dynamics method to study the supply side incentives. The results show that: (1) Scientific setting the relevant system parameters of RPS (such as quota, benchmark price and penalty) and promoting the electricity market reform will effectively stimulate the power generation and investment on the supply side, and improve manufacturers' profit. (2) Higher quotas and lower benchmark prices can increase the manufacturers' power generation, profit and investment, and stimulate the supply side to conduct TGC transactions. However, when the penalty is set at different multiples of the benchmark price, the incentive effect on supply side power generation, investment and profit differ. (3) Marketed on-grid prices can significantly stimulate the supply side and promote renewable energy development. This paper can provide reference for the design of RPS incentive mechanism and institutional parameters. [ABSTRACT FROM AUTHOR]

With the process of China's economic transformation and structural adjustment, the trend of thermal power industry transfer is more and more obvious. Under the background of industrial transfer, the research of the influence of environmental regulation on technological innovation has become a vital issue that needs to be discussed urgently for the current high-quality economic development. Based on the thermal power industry data in 30 provinces of China from 2008 to 2017, this paper constructs a mediating effect model to examine the relationship among environmental regulation, industrial transfer, and technological innovation. The results reveal that: (1) there is a U-shaped relationship between environmental regulation and technological innovation; (2) the increase of environmental regulation intensity promotes the thermal power industry to move to areas with loose environmental regulation; (3) industrial transfers play a mediating role in the process of environmental regulation influencing technological innovation. Therefore, the government should formulate scientifically effective environmental regulation policies so that the thermal power industry can realize orderly transfer and realize technological innovation. [ABSTRACT FROM AUTHOR]

Electricity market-oriented reform and carbon emissions trading, as the main policies implemented in China's power sector, have a profound impact on China's green and low-carbon transition by promoting resource allocation efficiency and internalizing external environmental costs, respectively. Therefore, this paper constructed a dynamic recursive CGE model to measure the energy, economic, and environmental impacts of carbon emissions trading and electricity market-oriented reform from electricity market structure and pricing mechanism. The results show that the two policies have a synergistic effect on industrial structure optimization, energy consumption structure optimization, and carbon emission reduction. Specifically, the share of value-added of the tertiary sector, the growth rate of coal consumption, the share of thermal power consumption, and carbon emissions in 2030 are reduced by 5.70 %, 18.29 %, 2.55 %, and 2.838 trillion tons, respectively, compared with the scenario without carbon emissions trading and electricity market-oriented reform. However, imperfectly competitive market structures outperform perfectly competitive market structures in energy consumption structure and carbon emission reduction. Electricity price regulation is also more beneficial to GDP growth and increase in residential disposable income compared to price liberalization. To this end, returning emission trading scheme revenues to residents can effectively mitigate the adverse impacts caused by market-oriented reforms. • EMR is involved in market structure, pricing mechanisms, and market regulation. • EMR and CET have a synergistic effect on carbon reduction. • Energy consumption structure is better in imperfectly competitive market. • Electricity price regulation is more beneficial to GDP growth. • Returning ETS revenue to residents increases per capita disposable income. [ABSTRACT FROM AUTHOR]

Government incentive policies play an important role in the promotion of distributed photovoltaic power. However, which policy is more effective for the diffusion of distributed photovoltaic power? This is a question that needs to be answered. Based on this, we combined the two-factor learning curve and system dynamics model to study the dynamic diffusion process of China's distributed photovoltaic power (DSP). The results show that (1) the coefficients of learning by doing and learning by researching for DSP are 0.0435 and 0.2971 respectively. This indicates that technological innovation caused by R&D expenditures in the DSP is the driving force for cost reduction. (2) Both demand-pull and technology-push policies contribute to the diffusion of DSP; (3) the effect of FIT policy on the diffusion of distributed photovoltaic technology is more significant than that of R&D policy; and the reduction of production cost of photovoltaic power industry by R&D policy is more significant than FIT policy. [ABSTRACT FROM AUTHOR]

China's electricity market reform poses an urgent demand for grid parity of renewable energy (RE), however, the high initial investment cost makes it difficult to achieve. Although feed-in tariff (FIT) and renewable portfolio standards (RPS) schemes are both practical policy tools to support the development of the RE industry, which policy is more consistent with the goal of grid parity? Accordingly, based on the system dynamic model, this research studies the levelized cost of RE (LCOE) under FIT and RPS, respectively. The results show that: First, under the current FIT scheme, wind (onshore) and photovoltaic (PV) power both cannot achieve grid parity. To realize it, extra payouts in four categories of areas should at least be 0.236, 0.244, 0.299 and 0.261 CNY/kWh. Similarly, additional subsidies for PV in Tibet and the northwest region except Tibet need to be 0.924 and 0.764 CNY/kWh. Second, under the RPS, wind (onshore) power can basically achieve grid parity, but PV cannot. Subsidies for PV need at least to be 0.525 and 0.364 CNY/kWh to achieve grid parity. Therefore, compared with the current FIT in China, the policy combination of FIT and RPS adjusted to local conditions is more conducive to realizing grid parity. • Under the current feed-in tariff (FIT), wind and photovoltaic (PV) cannot achieve grid parity. • Under the renewable portfolio standards (RPS), wind can achieve grid parity, but PV cannot. • The policy mix of FIT and RPS adjusted to local conditions can realize grid parity. [ABSTRACT FROM AUTHOR]

With the economic transformation and regional economic restructuring of China, there is a significant inter-regional transfer trend of industries among the eastern, central, western and northeastern regions. The industrial transfer is able to change the spatial distribution of regional energy intensity by affecting the regional industrial structure, thus impacting the convergence of energy intensity. This paper established a spatial Durbin panel model, and used the relevant data of thirty administrative regions of China from 2004 to 2017 to empirically study the impacts of industrial transfer on regional energy intensity. The results showed that: (1) As a whole, the energy intensity of China's regions was low in the southeast region and high in the northwest region, and there was a significant positive spatial autocorrelation among the energy intensity of different regions. (2) There was β -convergence in the regional energy intensity. It indicated that, on the one hand, the differences in the energy intensity of China's different regions were being gradually narrowed; on the other hand, the energy intensity of each region would converge to its own steady state. (3) The industrial transfer and economic development could promote the convergence of the regional energy intensity. • China's economic transition and regional economic restructuring promoted industrial transfer. • The regional energy intensity showed a decreasing trend from northwest to southeast. • Industrial transfer could promote the convergence of energy intensity. • A spatial Durbin panel model was used to prove the regional energy intensity convergence of China. [ABSTRACT FROM AUTHOR]

As subsidies continue to fall, the technology and cost performance of distributed photovoltaic (PV) determines the progress of its grid parity. Based on the discussion of technology and cost, this paper analyzed the economic performance of China's distributed PV industry by utilizing the two indicators of levelized cost of energy (LCOE) and internal rate of return (IRR). The results show that: firstly, the current external environment is generally conducive to the development of distributed PV, but there are still some constraints. Secondly, with the decrease of unit investment cost, distributed PV can achieve the goal of parity before 2025. Thirdly, distributed PV projects in the three types of solar energy resources all have high IRR, and the economic performance is better for the projects with high proportion of spontaneous self-use. At the end of the paper, policy recommendations are offered as references for the government. • We comprehensively analyzed the technology and cost performance of China's distributed PV. • We focused on the trend and decline path of China's distributed PV costs. • The LCOE of distributed PV in China is expected to achieve full parity in 2025. • Except 100% grid-connected mode, the IRR of distributed PV power plants in three areas is higher than 8% which has shown good economic benefits. [ABSTRACT FROM AUTHOR]

Abstract The imbalance and insufficiency of China's regional economic development has led to huge differences in regional energy efficiency. Reducing the differences in regional energy efficiency has become an urgent energy issue in China. The constant absorption of foreign direct investment (FDI) has brought advanced technologies to China, which has an important impact on China's energy efficiency. To explore whether FDI can reduce regional energy efficiency differences, this paper investigates the existence of energy intensity convergence while incorporating foreign direct investment (FDI). Since existing research on regional energy intensity convergence lacks of consideration of the data spatial dependence, we focus on spatial econometric model to test energy intensity convergence. We use panel data of 30 provinces in China over the period of 2005–2014 to test energy intensity convergence by β convergence model. The empirical results show that considering the spatial dependence of the data, FDI can promote the formation of conditional energy intensity convergence. Further analysis found that the spillover effect of FDI plays an important role in this formation. In addition, the convergence speed accelerates after considering the spatial dependence. Finally, the spillover effect of FDI, which is global, inhibits the declining speed of energy intensity during the research period. The scale effect of FDI and energy rebound effect plays an important role in the effect of FDI on energy intensity. These results show that guiding foreign investment more reasonably in each province in China can make contributions to the reduction of energy efficiency differences. Highlights • Use spatial econometric approach to test the convergence of energy intensity. • FDI can promote the convergence of energy intensity. • The spillover effect of FDI plays an important role in the formation of energy intensity convergence. • The effect of FDI on energy intensity has brought a rebound effect. [ABSTRACT FROM AUTHOR]

Abstract Studying the economic performance is of great significance to the policy improvement and investment decisions making of concentrated solar power (CSP) industry. This study developed a cost-benefit model to analyze the economic benefits of CSP industry, under the current technological level and policy system of China. The results showed that: Firstly, the huge initial costs resulted in that the investment of CSP industry had to bear a long capital recovery period, which might add the investment risks; meanwhile it was still economically feasible because of better expected benefits. Secondly, for CSP industry, the internal rate of return mainly varied from 8% to 12%, and the average levelized cost of energy was $0.148/kWh; the economic performance of CSP industry was attractive from the multiple dimensions analysis, and the benchmark feed-in-tariffs could provide effective support for the CSP industry development of China. Thirdly, adopting solar tower CSP technology was better choice to improve the economic benefits of CSP industry, compared with parabolic trough and linear Fresnel CSP technologies. Lastly, the direct normal irradiation, initial costs, annual electricity production and loans ratio had important impacts on the economic benefits of CSP industry, and should be paid more attention in investment decisions. Graphical abstract The policy system determines the costs and benefits of CSP industry by the economic parameters, and then affects the economic performance of CSP industry. The analysis on the economic benefits can provide scientific basis references for the industrial policy improvement and investment decisions. Image Highlights • Develop a cost-benefit model to analyze the economic performance of CSP industry. • Capital recovery period, usually more than 11 years, adds investment risks of CSP. • In spite of high initial costs, investment in CSP industry is economically feasible. • IRR of CSP industry mainly varied from 8% to 12%, with average LCOE of $0.148/kWh. [ABSTRACT FROM AUTHOR]

The prospective cost-benefit of CSP (concentrated solar power) is the attention focus for policy-making and investment decisions. In order to analyze cost-benefit evolution of CSP, the paper adopted the net present value and discounted cash flows techniques to develop a mathematical model, and calculated LCOE (levelized cost of energy) of CSP between 2018 and 2050 by taking the CSP industry of China as an example. The results show that: Firstly, CSP has a large potential in the LCOE reduction, and the values of parabolic trough and solar tower CSP systems reduce by 46%–57% and 47%–56% from 2018 to 2050, respectively. Secondly, predicted evolution for the LCOE of CSP strongly depends, not only on the cumulative installed capacity determined by the specific growth paths of Blue Map and Roadmap Scenarios, but also on the learning curves impacted by technical progress and experience accumulation. Thirdly, to select the sites with higher direct normal irradiation and land cost exemption is crucial to improve cost-benefit evolution of CSP. Lastly, the expected returns (i.e. discount rate) have important effect on the LCOE evolution of CSP, high expected returns lead to high the LCOE, and vice versa. [ABSTRACT FROM AUTHOR]

In order to find out the driving factors that affect the performance of PV industry in China, this article analyzes the panel data of 17 photovoltaic cells enterprise from 2008 to 2014. The total factor productivity growth is decomposed to test the performance of the photovoltaic industry and the level of technological progress. The empirical results show that the growth in output of Chinese PV industry mainly relies on technological progress, while the relative frontier technology efficiency does not change with time, and the allocation efficiency and scale economy function contributes little to the change of total factor productivity. Analysis shows that the way to obtain the future development of China PV industry is to rely on technological progress and market competition mechanism. [ABSTRACT FROM AUTHOR]

Among the regulatory policies, feed-in tariffs (FIT) and renewable portfolio standards (RPS) are the most popular to promote the development of renewable energy power industry. This paper uses system dynamics (SD) to establish models of long-term development of the renewable energy power industry under FIT and RPS schemes, and provides a case study of China's wind power industry by using scenario analysis method. The model, on the one hand, not only clearly shows the complex logical relationship between the factors but also reveals the process of coordination between the two policy tools in the development of the renewable energy power industry. On the other hand, it provides a reference for scholars to study similar problems in different countries, thereby facilitating an understanding of the renewable energy power's long-term sustainable development pattern under FIT and RPS schemes, and helping to provide references for policy-making institutions. The results show that the integrate implementation of FIT and RPS can promote long-term and rapid development of China's wind power industry given the constraints and actions of the mechanisms of RPS quota proportion, the tradable green certificates (TGC) valid period, and fines. In addition, in the period of the construction of the TGC market, RPS quota growth rate and fine have a no significant effect on industrial development, however, with TGC market game becoming more and more fierce, both of them have a significant positive impact on the long-term development of the industry. TGC valid period has little effect on industrial development in our study. At the end of the paper, policy implications are offered as references for the government. [ABSTRACT FROM AUTHOR]

Among the regulatory policies, feed-in tariffs (FIT) and renewable portfolio standards (RPS) are the most popular to promote the development of renewable energy power industry. This paper uses system dynamics (SD) to establish models of long-term development of China's biomass power industry under FIT and RPS schemes, and provides a case study by using scenario analysis method. The model, on the one hand, not only clearly shows the complex logical relationship between the factors but also reveals the process of coordination between the two policy tools in the development of the industry. On the other hand, it provides a reference for scholars to study similar problems in different countries, thereby facilitating an understanding of biomass power's long-term sustainable development pattern under FIT and RPS schemes, and helping to provide references for policy-making institutions. The results show that in the perfect competitive market, the implementation of RPS can promote long-term and rapid development of China's biomass power industry given the constraints and actions of the mechanisms of RPS quota proportion, the TGC valid period, and fines, compared with FIT. At the end of the paper, policy implications are offered as references for the government. [ABSTRACT FROM AUTHOR]

Among the regulatory policies, feed-in tariffs (FIT) and renewable portfolio standards (RPS) are the most popular to promote the development of renewable energy power industry. They can significantly contribute to the expansion of domestic industrial activities in terms of sustainable energy. This paper uses system dynamics (SD) to establish models of long-term development of China’s waste incineration power industry under FIT and RPS schemes, and provides a case study by using scenario analysis method. The model, on the one hand, not only clearly shows the complex logical relationship between the factors but also assesses policy effects of the two policy tools in the development of the industry. On the other hand, it provides a reference for scholars to study similar problems in different countries, thereby facilitating an understanding of waste incineration power’s long-term sustainable development pattern under FIT and RPS schemes, and helping to provide references for policy-making institutions. The results show that in the perfect competitive market, the implementation of RPS can promote long-term and rapid development of China’s waste incineration power industry given the constraints and actions of the mechanisms of RPS quota proportion, the TGC valid period, and fines, compared with FIT. At the end of the paper, policy implications are offered as references for the government. [ABSTRACT FROM AUTHOR]

As the primary source sector of carbon emissions, the power industry's green innovation is an indispensable component of China's low-carbon transformation. This paper took China's Carbon Emission Trading Scheme as a quasi-natural experience and adopted the synthetic control method to evaluate the impact of Carbon Emission Trading Scheme pilot policy on power industry's green innovation based on the provincial industrial level data. Furthermore, this paper examined the impact mechanisms of Carbon Emission Trading Scheme on the power industry's green innovation through policy comparison, moderating and mediating effect analyses. The research findings show that: 1) there is heterogeneity in Carbon Emission Trading Scheme's effectiveness in inducing green innovation in China, the power industry only in Beijing and Guangdong has been significantly promoted, while other pilots have not; 2) the success of Beijing and Guangdong can be attributed to distinctive features of their carbon market and power industry, including the refined quota accounting mechanism, the application of paid quota allocation, the larger enterprise scale and more research and development investment; 3) enterprise scale and research and development investment have positive moderating effect and mediating effect in the promotional effect of the Carbon Emission Trading Scheme on green innovation respectively. Finally, some policy recommendations are put forward to promote the power industry's green innovation and carbon market construction. • Evaluate the impact of China's CETS on the power industry's green innovation in each pilot. • The CETS effects among pilots are heterogeneous, only significant in Beijing and Guangdong. • Rational CETS mechanism design could improve the power industry's green innovation. • Enterprise scale and R&D investment positively moderate and mediate the CETS effect. [ABSTRACT FROM AUTHOR]

With the support of incentive policies, the diffusion of wind power has achieved tremendous achievements in China. However, behind this rapid expansion, it is raised a question: what are the driving forces behind the diffusion of wind power? And which policies are more efficient to improve the diffusion rate of wind power? To scientifically answer this question, this paper combines system dynamics and the two-factor learning curve to investigate the dynamic diffusion process of wind power. The results show that: (1) The demand-pull policy through feed-in tariff (FIT) policy can promote the diffusion of wind power; (2) The technology-push policy through R&D policy also promotes the diffusion of wind power; (3) A higher level of FIT is more efficient to expand the installed capacity of wind power, in addition, a higher level of R&D intensity is more efficient for cost reduction; (4) The coefficient of learning by doing of wind power is 0.0274 and the coefficient of learning by research of wind power is 0.2540, which indicates China's wind power industry is transitioning from price subsidies to technology innovation policies. The research results can enrich the research on the diffusion of wind power and provide a reference for other regions to study the diffusion of renewable energy. • Both demand-pull and technology-push can promote the diffusion of wind power. • The coefficient of learning-by-doing and learning-by-researching is 0.0274, 0.2540 • The reduction in wind power costs is driven more by innovation policies. • A higher level of FIT policy is more efficient to expand the installed capacity. • A higher level of R&D intensity is more efficient for cost reduction. [ABSTRACT FROM AUTHOR]

With the upgrading of urbanization and improvement of living standards, the volume of municipal solid waste (MSW) is increasing in China. The waste-to-energy (WTE) incineration industry promotes the harmless disposal and recycling of MSW. It is an important part of the energy conservation and emission reduction tasks of “12th Five-Year Plan” period (2011–2015). Based on the development status of WTE plants in China, this paper makes an analysis of the WTE incineration industry from two aspects. The one is the analysis of political, economic, social and technological factors that influence the external environment of this industry. The other one is the discussion of technologies, costs and performances of some WTE plants in China, including a detailed cost-benefit analysis. It proves that the external environment is conducive to the development of WTE incineration industry and this industry is faced with good market prospects. Also, the net profit margin and return on investment (ROI) of WTE plants is attractive, up to 25% and 18% respectively. The pay back period is 12.73 years and the internal rate of return (IRR) is 10.94%. Thus, WTE plant has good profitability and economic benefit. Besides, WTE incineration has significant environmental benefits. [ABSTRACT FROM AUTHOR]

The oil crisis and the successful commercial exploitation of shale gas in America have made shale gas become the focus of global energy industry. Shale gas industry will be developed mainly in the future. Sichuan has natural geographical advantages and becomes the main battlefield of shale gas in China. So it is necessary and urgent to analyze the current situation of Sichuan shale gas. This paper introduces the status quo of shale gas in Sichuan, and systematically analyzes the industrial environment for developing Sichuan shale gas from four aspects of policy, economy, society, technology. Then the issues facing Sichuan are discussed. Finally, the paper puts forward some corresponding recommendations to provide certain references to the development of shale gas industry in Sichuan. [ABSTRACT FROM AUTHOR]

To adjust the energy structure, protect the environment and deal with climate change, China has proposed that non-fossil energy would constitute 15 percent of the total energy consumption at the end of the “13th Five-Year Plan” period (2016–2020), and the use of biomass would account for 4 percent of primary energy consumption. Firstly, the current situation, the internal environment and the external environment of the biomass direct combustion power generation are analyzed. Then, the financial model of biomass direct combustion power generation project is established, and contrasts with other major new energy projects are carried out in terms of operation models, opportunities and risks so as to explore the investment features of this project in depth. Finally, appropriate investment strategies are proposed with respect of the investors, and policy recommendations for the development of the industry are attempted as well. [ABSTRACT FROM AUTHOR]

Abstract: Compared to the Feed-in tariff in China, the Renewable Portfolio Standard (RPS) could not only help to change the driving force of renewable energy industry development, but also provide the renewable energy industry with incentives to achieve the governments' planned goal. This paper first compares the features of RPS of the major industrialized countries. Second the barriers of implementing the Renewable Portfolio Standard in China are analyzed from five aspects. Finally, based on the above analysis, this paper puts forward relative institutional arrangements for the implementation of Renewable Portfolio Standard in China making recommendations for the development of renewable energy industry. [Copyright &y& Elsevier]

Under the downward pressure of the economy, China's extensive economic growth that relies on factor input is difficult to sustain. Scientific analysis of the industrial restructuring and energy consumption has become the key to realizing China's economic growth from high-speed to high-quality. Based on the fully-modified least square method and panel vector error correction model, this paper explores the equilibrium relationship and Granger causality among the industrial restructuring, energy consumption and economic growth at aggregated and disaggregated levels. The results show that: (1) The effect of industrial structure rationalization on economic growth is higher than that of industrial structure upgrading. When emphasizing industrial structure upgrade, the more reliable industrial policy to achieve China's sustainable economic growth is to pay attention to the industrial structure rationalization, especially in western China. (2) The impacts of natural gas and renewable energy consumption on economic growth are much smaller than coal and electricity consumption; more energy policies should be designed to encourage clean energy development. • The industrial structure rationalization has highest contribution to the economic growth of eastern China, followed by central and western China. • There exists unidirectional causality from industrial structure upgrading to structure rationalizing in western China and bidirectional causality between them in central China. • Effects of natural gas and renewable energy consumption on economic growth are much smaller than coal and electricity consumption. • Unidirectional long-term causality from renewable energy to economic growth exist in each sub-region. [ABSTRACT FROM AUTHOR]

Abstract: Facing the energy crisis and the requirement of green power, China is making great efforts to fulfill the international cooperation on renewable energy electricity aimed at protecting the security of electricity supply and economy development. This paper firstly utilizes the tool of SWOT strategy analysis to make a research on internal and external environment of international cooperation on renewable energy electricity in China. Secondly discusses the current situation and existing problems of international cooperation from four dimensions of strength, weakness, opportunity and threat. Then, gives a propose of four different kinds of international cooperation strategies based on the combination analysis of SWOT matrix. Finally puts forward the detailed implementation strategies of the policy recommendations for international cooperation on renewable energy electricity. [Copyright &y& Elsevier]

Renewable Portfolio Standards (RPS), as the strategic requirement effectively fits the top-level institution design of China's low-carbon energy transition, will help to promote China's energy structure optimization and power market reform. The success of its implementation depends on the scientific quasi-parameters design of the system. At present, China's tradeable green certificate (TGC) market is still in the voluntary trading stage. There are differences in natural attributes and transaction prices, resulting in the market segmentation and market distortion of the TGC market. Considering the non-neutral technology, this paper uses system dynamics to construct a long-term trading model under China's RPS, and analyzes the impact of relevant system quasi-parameters on the market trading process. The results show that:(1) The scientific quasi-parameters design of the RPS, such as technical conversion coefficient, TGC valid period, TGC benchmark price and RPS quota, will encourage and guide manufacturers to conduct TGC transactions, which will promote the development of renewable energy. (2) The introduction of the technical conversion coefficient can effectively promote TGC transactions, improve China's social welfare and optimize the power source structure. Therefore, the scientific design of the relevant quasi-parameters and strengthening of the supervision mechanism are conducive to implementing the RPS effectively in China. • The case of non-neutral technology is considered in this paper. • Use system dynamics to construct the model considering the non-neutral technology. • Analyze the impact of RPS quasi-parameters on the market trading process. • The scientific parameters can encourage and guide plants to conduct TGC transaction. [ABSTRACT FROM AUTHOR]

Government policies and investments in the photovoltaic power generation industry have contributed to the fast development of the photovoltaic power generation industry through technology push. But how does the research and development (R&D) investment affect the photovoltaic power generation industry, and what is its effect? This is a problem worthy of discussion. In order to answer this question scientifically, this paper constructs a system dynamics model to study the impact of R&D investment on China's photovoltaic power generation industry and analyzes the impact of other incentive policies such as Feed-in Tariff (FIT) on the photovoltaic industry. The results show that: firstly, R&D investment and FIT are conducive to the technological innovation of China's photovoltaic power generation industry. Secondly, a higher level of R&D investment can induce more cost reduction of photovoltaic power industry. Finally, the effect of FIT in promoting the growth of installed capacity of the photovoltaic power generation industry is more obvious. • The relationship between PV industry and technology innovation is reviewed. • R&D investment and FIT are conducive to the technology innovation of PV industry. • A higher level of R&D investment can induce more cost reduction of PV industry. • FIT policy is more effective for the expansion of PV installed capacity. [ABSTRACT FROM AUTHOR]

With the decline in the intensity of subsidy policies, technological progress has become a critical factor in promoting the renewable energy industry's sustainable development. This paper estimates the direction and extent of biased technological progress in China's renewable energy industry from 2009 to 2018. On this basis, by constructing an accounting model for the growth rate of total factor productivity (TFP), this paper empirically analyzes the effects of different factors on TFP growth. The research results indicate that: (1) The TFP of China's renewable energy industry has dropped by 4.60% annually, and the growth of industrial output mainly relied on factor input rather than technological progress. (2) The technological progress and factor allocation of China's renewable energy industry generally show a bias towards the capital. At different stages of the industry's development, it presents different degrees of bias. (3) Technological progress is biased towards capital factor with a lower growth rate of factor efficiency, which hinders the growth of TFP in the renewable energy industry. • This paper reveals the driving mechanism for the development of China's renewable energy industry. • The technological progress and factor allocation of China's renewable energy industry are biased towards the capital. • Capital inefficiency is the fundamental reason for the reduction of TFP in the renewable energy industry. • Improving the level of independent R&D is the key to achieving China's renewable energy industry's sustainable development. [ABSTRACT FROM AUTHOR]

The switch of coal to gas in power generation enterprises is of great significance for tackling air pollution and mitigating climate change. Under China's emissions trading system, power generation enterprises have incentives to switch to low-carbon clean power, and the cost-benefit of switching is the basis of their decision-making. To this end, this paper studied the impact of changes in carbon and fuel prices on switching prices. The results show that: (1) For per yuan increase in the amount of natural gas, coal, and carbon, the switching price increased 4.768, decreased 5.845 and decreased 0.9994 yuan, respectively. (2) The carbon price is relatively low, and the impact of it on switching price is small. (3) The fluctuation in the carbon price, coal price and the natural gas price has a hysteresis effect on switching price. [Display omitted] • This study assesses the coal-to-gas switch possibility in Guangdong Province. • A new mode of operation of coal-to-gas switch is published. • For per yuan increase of carbon price, the switching price decreased 0.99 yuan. • The impact of carbon price fluctuations on switching price has a lag effect. [ABSTRACT FROM AUTHOR]

This paper selected the relevant data of China's thirty administrative regions from 2005 to 2016, and constructed a geographically and temporally weighted regression model of technological progress and energy intensity, to fully analyze the heterogeneous impact of technological progress on energy intensity. The results showed that: (1) The energy intensity of China's different regions, in the long run, had an obvious spatial agglomeration effect and a significant positive correlation in spatial. (2) The spatial heterogeneity of the impact of technological progress on energy intensity changed smoothly and steadily in the temporal dimension, and the dominant factors affecting the energy intensity gradually shifted from foreign direct investment, opening-up degree, human capital to research and development funds from 2005 to 2016. (3) The temporal heterogeneity of the effect of technological progress on energy intensity varied greatly from different spatial dimensions, specifically, the influence of research and development funds on energy intensity was high in the western regions and low in the eastern regions, but that of the foreign direct investment was the opposite, the spatial distribution of the effects of opening-up degree, human capital on energy intensity was dispersed and had no obvious aggregation phenomenon. • GTWR model between technological progress and energy intensity was constructed. • Energy intensity in China had significant spatial agglomeration effect and spatial positive correlation. • Spatial heterogeneity of the impact of technical progress on energy intensity changed steadily. • Temporal heterogeneity of the impact of technical progress on energy intensity varied greatly. • Since 2010, R&D funds became the most effective factor for the reduction of energy intensity. [ABSTRACT FROM AUTHOR]

Carbon emission trading (CET) is an important mechanism for China to achieve carbon emission reduction targets and sustainable development. The success of its implementation depends on the scientific institutional supply design. At present, China is actively promoting the implementation of electricity marketization reform and Renewable Portfolio Standards (RPS), which would change the institutional environment for manufacturers' decision-making and trading, thus impacting CET. Accordingly, this paper aims to establish an evaluation model using the system dynamics method to simulate and evaluate the impact of RPS on CET under the background of electricity marketization reform by designing and combining different policy scenarios. The results show that: (1) The impact of electricity marketization reform and RPS on carbon trading is mainly reflected in carbon emission rights' demand, trading volume, trading price and power generation of manufacturers. (2) Under the situation of marketed electricity price and the absence of RPS, various indicators of the CET market are superior to other policy combinations. (3) Marketed electricity price can effectively stimulate manufacturers' demand for carbon emission rights, increase trading volume, and have a positive impact on CET. However, the implementation of RPS weakens the demand for emission rights, reduces manufacturers' power generation and profit, and harms CET. • Studied the impact of RPS on CET in the context of electricity marketization reform. • Establish an evaluation model by using the SD method. • Marketed electricity price positively affect CET, while the RPS harms CET. • The policy combination of marketed electricity price without RPS is optimal. [ABSTRACT FROM AUTHOR]

To promote energy production and consumption revolution, China introduced Renewable Portfolio Standards (RPS) in 2018. The investigation on power producers' behaviors and the evaluation of the effectiveness of RPS could lay the foundation for the design of RPS, and scientific institution design is the key to promote the development of renewable energy. In this paper, the evolution process of power producers' behaviors has been simulated based on subjective game model, and the performance of RPS has been evaluated based on power producers' shared mental model. The results show that: 1) After the implementation of RPS, the uncertainties of power producers' behaviors decrease gradually, and the game equilibrium has been established, broken, and then rebuilt. 2) When choosing a certain strategy could obtain higher payoff, power producers tend to choose this strategy more frequently in future games. 3) When the fine is two times the price of Tradable Green Certificate (TGC), it becomes the shared mental among power producers to trade TGCs, and RPS becomes effective. Image 1 • Policy parameters influence power producers' behaviors, and power producers' behaviors influence the performance of RPS. • If obeying the rules defined by RPS becomes the shared mental of all power producers, RPS is considered to be effective. • When choosing a certain strategy can obtain higher payoff, power producers tend to choose this strategy more frequently. • When the fine is two times the price of TGC, RPS is effective. [ABSTRACT FROM AUTHOR]

At present, China's PV industry is experiencing a policy-driven to market-driven transition. Whether the endogenous driving force for China's PV industry output growth has been changed is a question of substantial concern? To scientifically answer the question of the endogenous driving force of the output growth of China's PV industry, we empirically analyse the driving force of China's PV industry output growth by constructing an expanded Cobb-Douglas technology production function. The results demonstrate that the output elasticity of research and development (R&D) is between 0.13 and 0.18, which is higher than the level of 0.1 in traditional Chinese manufacturing. Compared with traditional industries, PV industries are more capable of translating their R&D inputs into output revenue; The contribution rate of R&D input to output growth exceeds physical capital and labour factors, indicating that the endogenous driving force of China's PV industry output growth has changed from factor-driven to technological innovation-driven. • Reviewed literature on the output growth of China's photovoltaic industry systematically. • The output growth of photovoltaic industry is studied from the perspective of technological progress. • The R&D output elasticity of China's photovoltaic power generation industry is around 0.13-0.18 • The driving force of China's PV industry output growth has changed from factor-driven to technological innovation-driven. [ABSTRACT FROM AUTHOR]

Energy efficiency improvement is one of the most effective means to achieve energy conservation. The success of energy conservation depends on scientific policy design. So what is the impact of existing policies on energy efficiency? What types of policy tools have the most significant impact on energy efficiency? In response to these problems, this paper took the energy conservation policies promulgated by the Chinese government over the years as samples. This paper used the ridge regression model to analyze policy inducement effect in energy efficiency based on the data envelopment analysis (DEA) model and the policy text evaluation model. The results show that: (1) Energy conservation policies have a positive influence on improving energy efficiency. (2) Among the policy tools, economic incentive tools have the most significant influence on the increase in energy efficiency. Therefore, the government should emphasize the use of economic incentive policy tools and coordinate the relationship between various policy tools to achieve China's stated energy conservation goals. ● This paper makes a quantitative analysis of the energy conservation policy. ● This paper examines the evolution of policy effectiveness. ● This paper analyzes the impact of energy conservation policy on energy efficiency. ● This paper analyzes the impact of policy tools on energy efficiency. [ABSTRACT FROM AUTHOR]

Reasonable design of the tradable green certificate (TGC) system quasi-parameters (benchmark price and technical conversion coefficient) can effectively induce the mutually beneficial cooperation of the TGC market players. However, almost no literature quantitatively estimates the quasi-parameters of TGC system. This paper uses the cooperative game theory to construct the TGC bilateral trade model between renewable energy power generators and distribution power suppliers, and then quantitatively calculates the quasi-parameters of TGC system for social welfare maximization. The results show that: (1) The constructed TGC bilateral trading model guides the mutually beneficial cooperation among market players effectively by realizing benefit expansion and redistribution; (2) The TGC benchmark price and the conversion coefficients can be quantitatively calculated based on the Nash bargaining model. Taking China for example, the benchmark price is 333 yuan/MWh, and the technical conversion coefficients of hydropower, wind power and photovoltaic power are 1, 1.2, and 1.5, respectively. • A tradable green certificate (TGC) bilateral trading model is established. • The benchmark price of TGC in China is 333 yuan/MWh. • The technical conversion coefficients of TGC in China are calculated. • The superiority of Nash bargaining in the quasi-parameters design is validated. [ABSTRACT FROM AUTHOR]

The urbanization process and the continuous upgrading of consumption structure have driven the rapid growth of China's residential electricity consumption, making it urgent to strengthen energy conservation and emission reduction in the residential sector. Improving the efficiency of electricity use is an effective method to reduce the consumption of electricity, but the rebound effect (RE) also emerges. Is it still conducive to saving electricity? In response to this question, this article selects the relevant data in China during 2010–2016 to construct the panel linear model and the panel threshold model respectively to analyze the direct RE of residential electricity consumption. The results show that: (1) The average RE of China's residential electricity use is 84.94%. It indicates that energy efficiency improvement can lower residents' electricity use, but only 15.06% of the expected target can be achieved. (2) The direct RE in high-income regime (PGDP>76023.67) and low-income regime (PGDP≤76023.67) is 59.15% and 80.79% respectively, meaning that energy efficiency measures in the high-income regime are more effective. (3) The direct RE in the high-population regime (POP>6083.28) and low-population regime (POP≤6083.68) is 120.09% and 83.91% respectively, indicating that energy efficiency improvement in the high-population regime has intensified residents' electricity consumption. Therefore, to maximum energy saving effect, the government should take the inter-provincial heterogeneity of the RE into consideration and introduce market-oriented measures such as price and tax to restrain it. Image 1 • The direct rebound effect of China's residential electricity use is 84.94%. • The direct rebound effect is 59.15% (80.79%%) in the high (low) income regime. • The direct rebound effect is 120.09% (83.91%) in the high (low) population regime. • The population has the greatest impact on residential electricity use, followed by PGDP. [ABSTRACT FROM AUTHOR]

Due to its characteristics of nearby power generation, grid-connection, conversion and use, rooftop photovoltaic power generation has formed the advantages of less investment, flexible, efficient and environmental protection, with broad prospects for development. Therefore, studying its economic performance is of great significance to investment decision and policy improvement. Under the current technical cost and policy conditions of rooftop photovoltaic in China, this paper constructs a cost-benefit analysis model considering the impact of inflation on cash flow. The results show that: For small rooftop photovoltaic in China, first of all, under the existing subsidy price and cost, its investment payback period is short and the risk is low. Secondly, the average internal rate of return is more than 10%, and the levelized cost of electricity is 0.2727–0.5573CNY/kWh, so the economic performance is good. Then, although the subsidy price has been lowered twice in a row in 2018, its economic performance is still relatively good. Finally, in the economic performance analysis of rooftop photovoltaic, besides the influence of power generation capacity, loan interest rate, construction cost and other factors, the time value of capital and inflation are also factors that cannot be ignored. • The analysis is based on current policy and technology levels. • The object of analysis is industrial and commercial household photovoltaic. • The inflation rate is added to the formula for calculating various economic indicators. [ABSTRACT FROM AUTHOR]