Abstract
As traditional energy is depleting, it is urgent to search for substitutes of traditional energy. Therefore, policies promoting the development of renewable energy are introduced. Under the condition of non-capital constraints, the green-credit policy and the production subsidy about renewable energy enterprises are compared. The results show that changes of market interest rate provide different implications for regulators to choose between the two policies. Under the condition of capital constraints, it is found that the green-credit policy has positive effect on renewable energy enterprises, and the effect enlarges when the difference between green rates and market interest rate becomes wider. With the increase of carbon tax and the negative externality of traditional energies, the capital flows into renewable energy enterprises. This article provides support for the development of renewable energy and its policies based on the comparison of the two policies. According to the results of this study, it is believed that the implementation of both types of policies will have a more positive effect.
Highlights
Energy is an important pillar for human’s existing and modern economy development [1]
Under the condition of capital constraints, it is found that the green-credit policy has positive effect on renewable energy enterprises, and the effect enlarges when the difference between green rates and market interest rate becomes wider
With the increase of carbon tax and the negative externality of traditional energies, the capital flows into renewable energy enterprises
Summary
Energy is an important pillar for human’s existing and modern economy development [1]. On the condition of the same government’s cost, the article compares and analyzes direct payments and green-credit policies on renewable energy sources. Carbon tax and green-credit policy coexist, how the capital flows between renewable energy enterprises and traditional energy enterprises is analyzed in this article. The main contributions are as follows: this article compares the differences in production between direct measures and green-credit policies, which promote the development of renewable energy sources as an indirect measure. On the condition of capital constraints, the research finds that the increase of negative externality and carbon tax policy can cause the capital to flow to renewable energy enterprises. The last part is about the conclusion and policy suggestions
Sign-in/Register to view highlights & summary Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a callMore From: Physica A: Statistical Mechanics and its Applications
Disclaimer: All third-party content on this website/platform is and will remain the property of their respective owners and is provided on "as is" basis without any warranties, express or implied. Use of third-party content does not indicate any affiliation, sponsorship with or endorsement by them. Any references to third-party content is to identify the corresponding services and shall be considered fair use under The CopyrightLaw.
