Abstract
The renewable energy industry is capital-intensive and the development of renewable energy needs huge amount of capital. Financial development is often cited as a very important driver of economic growth in emerging economies and it is apparent that financial development affects energy demand. Therefore, energy finance has attracted full academic attention in recent years. The computable general equilibrium (CGE) model has been proven to be an effective tool for policy analysis and is preferred by major international research institutions. But to the best of our knowledge, most existing studies used CGE model to examine the impact of oil and coal prices effects on the Chinese macro-economy or help decision makers in climate policy analysis, but little has been done regarding the impact of renewable energy finance policies in this context. This paper proposed a CGE model for policy simulations and optimal selections to promote renewable energy development.
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