Renewable Energy In China Research Articles

Analysis and prediction of CO2 emissions from commercial energy consumption and emission reduction potential of renewable energy in China

Analysis and prediction of CO2 emissions from commercial energy consumption and emission reduction potential of renewable energy in China

Development and Prospects of China's Renewable Energy Export Trade under the Belt and Road Policy

Under the trend of economic globalization, the cost of renewable energy development has been decreasing globally, and renewable energy development has become the focus. But since 2018 the trade war between China and the United States has been escalating, and China's renewable energy development has been hindered by the United States because China's core technology is still not fully mastered. How to deal with related issues is crucial for China's development. The article uses literature analysis to analyze the impact of the US-China trade war and China's own overcapacity problem on China's renewable energy development, and to provide countermeasures to address the corresponding problems. This paper argues that the sustainable development of China's renewable energy industry faces three basic problems, which are restricted by the trade barriers of the US-China trade war, the lack of some core technologies, and the potential overcapacity problem in the future. In order to achieve sustainable development of renewable energy in China, it is suggested seizing the opportunity of the Belt and Road policy development with energy cooperation as the key area of development. By analyzing the various factors affecting the development of China's renewable energy industry, and by giving suggestions and countermeasures, this paper hopes to give a comprehensive understanding of the development history and prospects of the renewable energy industry in China and provide reliable suggestions for the development of related industries in China.

The mechanism of China's renewable energy utilization impact on carbon emission intensity: Evidence from the perspective of intermediary transmission

Renewable energy (RE) plays a crucial role in global energy transformation, and a thorough study of the potential impact of RE on regional carbon emissions is of great significance. This is particularly relevant to China, which needs to clarify its path to carbon reduction. Using the sample data of 30 provinces in China from 2000 to 2021, this paper uses the Granger causality test to verify the causal relationship between carbon emission intensity (CEI) and other factors. It builds a mediation effect model on this basis to explore the direct impact effect and indirect transmission path of renewable energy utilization (REU) on CEI. The results show that REU has a one-way causal relationship with CEI. REU can directly and indirectly reduce CEI by improving social wealth and changing the direction of energy investment. In addition, REU indirectly increases CEI through the transmission paths of investment in the energy industry - social affluence and industrial level-social affluence. The CEI is indirectly reduced through the conduction paths of (social affluence-Urbanization rate), (Investment in the energy industry-Urbanization rate), (Industrial level-Urbanization rate), and (Industrial level-Investment in the energy industry). These conclusions will assist policymakers in exploring targeted pathways for low-carbon power development, providing a reference for strategic and sustainable carbon reduction policies.

Emerging Industry Development and Information Transmission in Financial Markets: Evidence from China's Renewable Energy

Financial constraint theory and asset pricing theory elucidate the distinct correlation between equity capital cost and strategic investment from different perspectives, encompassing both the intricate uncertainty of the business environment and the efficacy of transmitting financial market information. The burgeoning development of China's renewable energy industry amidst this complex backdrop provides an exceptional empirical context for investigation. Therefore, we select Chinese renewable energy enterprises as samples, considering both internal perceived and external cognized business environment uncertainty, to examine the role played by these factors in influencing equity cost on strategic investment. The findings reveal that changes in such uncertainties result in a ‘saddle’ characteristic. This insight facilitates a comprehensive comprehension of the information conveyed by fluctuations in equity capital cost within emerging industries, along with its underlying mechanisms and limitations.

How does digital finance encourage the use of renewable energy in China? Inverse relationships from green finance.

A promising approach forfacilitating China's shift towards renewable energy sources entails combining digital finance and green financing. The present research investigates the supply chains and reverse logistics of significant financial indices, including the S&P Green Bond Index, the MSCI Global Markets Index, and the S&P Global Renewable Energy Index. The analysis encompasses the period from the creation of these indices on September 28, 2008, through January 12, 2022. To minimize risk, portfolios have increasingly adopted diverse indices, such as the S&P Global Clean Energy Index and the S&P Green Bond Index. This study investigates the intricate relationship between green financing and digital finance, shedding light on their combined impact on the uptake of renewable energy in China. This study examines the role of digital financial technologies, including blockchain, mobile payment systems, and big data analytics, in enhancing the accessibility of green financing choices for renewable energy projects. A comprehensive analysis of existing literature and empirical research is conducted to achieve this objective. The results emphasize the significant progress in improving financial inclusion, risk management, and transparency by integrating green financing and digital finance. As mentioned earlier, the enhancements have significantly enhanced the level of trust and assurance among investors operating within the renewable energy industry. Moreover, the report highlights the crucial need for continuous governmental backing and financial investments in digital financial infrastructure to drive China towards a more environmentally friendly and sustainable energy framework.

Analysis of the tripartite evolutionary game in the marketization of China’s renewable energy-based electricity prices

The evolution of China’s renewable power pricing regulation from subsidy-driven fixed feed-in tariffs (FIT) to market-oriented, quota-based renewable portfolio standards (RPS) is a crucial institutional transformation designed to advance the low-carbon energy transition. The government’s price regulation of mandatory and non-mandatory quotas has a direct impact on the optimal production decision-making behavior of renewable and coal-fired power producers, which determines the effective substitution of fossil energy by renewable energy in China, and relates to the successful realization of the low-carbon energy transition. This article presents the construction of a tripartite evolutionary game model under both non-mandatory and mandatory quotas, employing MATLAB software to simulate and assess the effectiveness of a tradable green certificate (TGC) system in the presence of mandatory quotas. Based on stable equilibrium strategies, we discuss the impact of FIT on green certificate trading under four different subsidy withdrawal strategies and three quota and penalty scenarios. The results indicate the following. First, when renewable power producers certify and engage in green certificate trading, coal-fired power producers purchase green certificates, and the government implements mandatory quotas, the participants in the game achieve an equilibrium strategy combination. Second, the findings validate the effectiveness of the RPS–TGC model (i.e., the green certificate trading system in the presence of mandatory quotas) for electricity price regulation. Third, the root cause of the failure of China’s current voluntary green certificate trading system is the government's non-mandatory quotas. Accordingly, it is proposed that the marketization of renewable electricity prices in China needs to adopt a fast-then-slow exit of FIT subsidies, with renewable energy power quotas set at 20% and penalty standards set at 1.5P.

Which combinations of renewable energy policies work better? Insights from policy text synergies in China

Policy synergy is crucial to achieving unified national strategies in the effective implementation of policy. This study investigates the synergistic effectiveness of China's renewable energy (RE) policy tools by analyzing 7920 RE policy texts issued by provincial governments between 2005 and 2020. By proposing the “Policy Text Quantification-Association Rule Mining-Synergy Effect Test” framework, we explore how the interaction between five policy tools affects Chinese provincial RE development. Results show that provincial policy texts mainly use targets & planning and industrial development with lower stringency than the other three tools. More importantly, targets & planning policies interact positively with operations management and industrial development, as they help reduce the uncertainty during concrete implementation in achieving expected targets and plans. On the other hand, industrial development and financial support policies could potentially repeat incentives on specific industries or enterprises, amplify unequal resource allocation and market distortion, failing to generate synergy effects.

Role of demand response in the decarbonisation of China's power system

Realising China's carbon peaking and neutrality commitments requires a fundamental transformation to a renewable-dominant power system, presenting new challenges to the balance between power supply and demand. In addition to enhancing flexibility on the supply side, it is necessary to fully exploit the flexibility resources on the demand side. Accordingly, flexible load resources using a demand response (DR) mechanism are expected to play a crucial role. In this study, a DR module was developed for an optimal capacity expansion and operation model, the China renewable energy planning and operation (REPO) model. Three different DR behaviours were modelled, namely load shedding, short-term load shifting, and long-term load shifting. Under a forecasted carbon price, DR in eight major industries can achieve an annual cost saving of approximately 16.8 billion yuan and reduce carbon emissions by approximately 106 million tons by 2030. Investment in DR is cost-effective, particularly because the cost saving is nearly 3 times the present value in 2025 and about 4.3 times in 2030. Moreover, DR has a positive effect on reducing the installed capacity demand of coal power and energy storage, which is conducive to increasing the proportion of renewable energy generation and restraining the fluctuation of marginal power generation cost.

The impact of government subsidies on capacity utilization in the Chinese renewable energy industry: Does technological innovation matter?

With the rapid increase in China's installed capacity of renewable energy (RE), there has been growing concern regarding the problem of overcapacity in China's RE industry. However, there is ongoing debate regarding the influence of government subsidies (GS) on the RE industry's capacity utilization (CU), and the role of technological innovation in this aspect has been overlooked. This study utilizes panel data from 114 Chinese RE-listed companies spanning from 2011 to 2021, aiming to uncover the impact of GS on the CU of RE. The findings show that GS reduces the CU of RE firms. Specifically, GS has not only facilitated investments in RE but also bolstered enterprises' market share. However, the former effect is stronger, reducing the CU of RE companies. In addition, our findings reveal that when the technological innovation capability of RE companies surpasses a certain threshold, the negative impact is weakened. Finally, for non-state-owned, growth-stage, low R&D subsidy proportion, and western region-based RE firms, the adverse effect of GS on their CU is particularly prominent, but no statistically significant evidence to suggest such an effect for state-owned, non-growth-stage, high R&D subsidy proportion, and non-western region-based RE firms. Accordingly, we present targeted policy recommendations.

Do feed-in tariff reduction and green certificate trading effectively promote regional sustainable development？

Two main national policies, feed-in tariff (FIT) and tradable green certificate market (TGC) are adopted to support China's renewable energy (RE) development. Yet it remains an open question whether their influences effectively contribute to regional sustainable development. This study first measures the green total factor productivity (GTFP) of 31 mainland provinces from 2013 to 2020. Then, an empirical investigation is conducted to analyze the impact of China's FIT reduction and TGC policies on provincial GTFP. So far as provincial GTFP is concerned, empirical results confirm promotion effects from FIT reduction policy, and negative effects from green certificate trading practices. It also presents similar effects on provincial green technology innovation, promotion from FIT reduction, while hindering influence from TGC market. A point worth noting is that a positive effect on provincial GTFP results from a joint implementation of FIT reduction and TGC. Provincial GTFP is partially affected through RE power generation proportions. This paper's highlight lies in revealing energy policies' crucial role, such as FIT reduction and TGC markets, in regional sustainable development promotion. These policies become indispensable in China's long-term sustainability.

How do corporate social responsibility and green finance strategies impact sustainable development in China's renewable energy sector?

As the globe transitions to a low-carbon economy, China's renewable energy (RE) sector is crucial to attaining sustainable growth. Green financing and corporate social responsibility (CSR) strategies have become increasingly important in promoting the growth and sustainability of the RE sector. In order to evaluate CSR factors and green finance strategies for effective integration in supporting the RE industry, this research employs hybrid Fuzzy Analytic Hierarchy Process (FAHP) and Fuzzy VIekriterijumsko KOmpromisno Rangiranje (FVIKOR) approaches in the context of China. The FAHP method is used to determine the various CSR factors and subfactors, while the FVIKOR method is employed to prioritize the key green finance strategies. The findings of the FAHP method highlight the importance of socioeconomic development, environmental protection, and stakeholder engagement as critical CSR factors for RE sectors. Moreover, the results of the FVIKOR method reveal that innovative financing mechanisms, green bonds, and green banks emerged as significant green finance strategies for mobilizing capital and resources for RE projects. The study highlights the value of aspects of CSR and green financing techniques in fostering sustainable development in the RE industry. The results can aid in the promotion of sustainable practices and the assistance of China's transition to a more resource- and environment-wise economy by firms, investors, governments, and other stakeholders.

The impact of digital economy on renewable energy development in China

Digital economy has been the essential driving force for green development and energy transition, while the role of digital economy in the development of renewable energy remains limited. This paper explores how digital economy development alters renewable energy in China. Based on the panel data of 31 provinces and the fixed effects model, this paper finds a positive association between digital economy and renewable energy development. The digital economy exhibits a stronger positive impact on hydro energy compared to wind energy and solar energy. Local government intervention can enhance the positive association between digital economy and hydro energy development, while reducing the positive effect of digital economy on wind energy and solar energy development. We also find that digital economy produces larger promoting effects on renewable energy development in the central and western provinces compared with the eastern provinces.

Barriers to Renewable Energy Share of the Grid in the Context of Big Data and Countermeasures

Abstract China is moving forward, but it pays much attention to data analysis of infinite resource circulation. Therefore, this paper investigates the time-domain convolutional calculation method of deep learning and recurrent calculation method of deep learning and uses them to study and analyze the obstacles and countermeasures for the share of renewable energy in our country’s right grid. Then, the passing situation of renewable energy in China is analyzed. Information related to China’s advancement and utilization of inexhaustible resources from 2010 to 2020. From the analysis of the gathered information, it is unequivocal that the scale and share of inexhaustible resources of ancestors in our country’s rights are gradually increasing. Space occupancy in recent 3 years of inexhaustible resources generation in our country will be more than 133 million kilowatts, and the proportion is about 70% of our country’s right power supply; the solar power generation capacity will increase from almost nothing to 261.1 billion kilowatt-hours in 2020 from less than 300 million kilowatt-hours in 2010, which is nearly exponential growth. Finally, this paper combines the existing features of renewable energy in China, puts forward the problems and challenges encountered in the advancement of inexhaustible resources, and gives countermeasures that can be strengthened the utilization rate of renewable energy in the power grid.

How does renewable energy consumption affect carbon emission intensity? Temporal-spatial impact analysis in China

Whether renewable energy consumption is beneficial to reducing CO2 emission intensity and carbon emissions in the context of the goal of “carbon peak and carbon neutrality” in China. To prove this conjecture, considering the spatial spillover effect of carbon dioxide, this paper adopts the spatial Dubin model for empirical analysis based on the panel data of China's 30 provinces over the period 2002–2019. This study explores the CO2 intensity mitigation effect of China's renewable energy consumption and further investigates the mediation role of technological innovation, industrial structure upgrading and optimization, and energy efficiency in the nexus between renewable energy consumption and carbon intensity. The main findings present that: (1) China's carbon emission intensity is characterized by significant spatial correlation; (2) Renewable energy consumption can significantly reduce carbon intensity and per capita carbon emissions; (3) The mediation effect of renewable energy consumption in reducing carbon emission intensity is to promote technological innovation and industrial structure upgrading, as well as improve energy efficiency. Based on the conclusions, this paper offers several policy implications for governments to reduce CO2 emission intensity.

Evaluating the U-shaped environmental kuznets curve in China: The impact of high technology exports and renewable energy consumption on carbon emissions

China's efforts to reduce carbon emissions have stagnated, raising doubts about its commitment to addressing climate change. This study examines the relationship between China's renewable energy, high-tech exports, coal combustion, inbound foreign investment, economic growth, and carbon emissions from 1995 to 2020. The findings reveal a U-shaped relationship between renewable fuel consumption and carbon emissions over the long term, while short-term results show a consistent decrease in emissions. High-tech exports have contributed to reducing carbon emissions, but foreign investment has led to increased emissions, supporting the pollution halo concept. Economic growth is linked to higher carbon emissions in the long run. The study emphasizes the need for China to upgrade its renewable energy initiatives and promote high-tech exports while being cautious about foreign investment. Effective coordination among sectors and stakeholders is essential for reducing carbon emissions in China's renewable energy industry.

Can the development of renewable energy in China compensate for the damage caused by environmental pollution to residents' health?

China's rapid economic growth in recent decades has caused a growing problem of environmental pollution, which negatively impacts the physical and mental health of residents. In recent years, renewable energy has emerged as a promising solution to alleviate environmental pollution and improve residents' well-being. However, it is unknown whether renewable energy development can counterbalance the health impacts of environmental pollution. Therefore, we conducted a study using data from the China Family Panel Studies (CFPS) to examine the impact of environmental pollution and renewable energy on the health of 20,694 residents. Our analysis showed that renewable energy development can partially offset the negative health effects of environmental pollution. Specifically, we found that a 1% increase in environmental pollution is linked to an average decrease of 0.0911% in physical health (PHY) and 0.0566% in mental health (MEN), whereas each 1% rise in renewable energy corresponds to an average increase of 0.2585% in PHY and 0.1847% in MEN. These positive effects apply to male and female residents, urban and rural residents, young and middle-aged adults, and people with low, medium, and high levels of education. These findings are significant for decision-makers striving to improve Chinese residents' physical and mental health by considering the specific impact of renewable energy and comprehensive environmental pollution.

The short- and long-run causal correlation between green finance, renewable energy consumption, and economic growth

We propose a vector error correction model to explore the causal correlation between green finance, economic growth, and renewable energy consumption from both short- and long-run perspectives to empirically evaluate the efficacy of green finance policies. Based on time-series data from 2000 to 2020, we use the unit root test method to examine time-varying trends and cointegration for time-series data. We find that renewable energy consumption has a negative relationship with emissions but green finance is positively correlated with economic growth. Green finance is the driving factor behind the increasing utilization of renewable energy in China. CO2 emissions per unit of GDP decreased by 1.077% for every 1% increase in green finance development. Although the share of renewable energy consumption increased by 1%, CO2 emissions per unit of GDP decreased by 0.55%. Therefore, green finance is significant in decreasing CO2 emissions; it has a negative impact on CO2 emissions and the renewable energy sector and must be addressed by financial policy, stability, and long-run sustainability. We categorized green finance, which refers to carbon finance innovations such as trusteeship, to improve market demand and eventually develop industries to expand the number of emission-control industries.

Research on China's renewable energy policies under the dual carbon goals: A political discourse analysis

The development of renewable energy (RE) is an effective solution to address the global greenhouse effect and climate change. China's government has enacted a series of RE policies that play an important role in regulating and developing strategy. The development of national RE cannot be separated from the multidimensional guidance and support of policies, and policy analysis can be one of the important indicators of energy industry trends. However, currently, few studies conducted to research whether these policies are performing their intended functions and roles in driving the energy transition. This study constructed a framework from the dimensions of text content and discourse function analysis and used NVivo12 software to analyze seven important renewable energy policy discourses (2000–2022) enacted by the Chinese government to summarize the word frequency of renewable energy policies and the discourse functions they perform. The study finds that China's renewable energy policies are mainly guided by five-year plans, the types of renewable resources are constantly improved, and the policies themselves play a strong role in promoting the achievement of the dual-carbon goal. Due to the RE policies' lack of top-level design; the future development of implementation policies should fully stimulate the initiative and enthusiasm of the main subjects, such as government, enterprises and the public, and promote synergy and cooperation among subjects. Accelerating the global cooperated low-carbon scientific and technological innovation is an effective means to break through technical constraints. Finally, the paper puts forward suggestions on China's renewable energy policy to implement the dual carbon goals during its 14th Five-Year Plan period.

The Impact of Renewable Portfolio Standard Policy on Microgrid System

China's renewable energy policy is gradually transiting from subsidies to Renewable Portfolio Standard (RPS) policy. This paper establishes a two-stage game model consisting of prosumers and the grid in microgrid system under PRS policy. It is found that the social welfare shows an inverted "u" with increasing penalty and prosumers demand. The prosumers can be profitable only when the production cost factor is lower than the boundary value. Government can implement the RPS policy first in areas with lower production costs. Lower price for green certificates and mid-level penalty effectively incentive green energy production and consumption in microgrids. Government needs to control the price of green certificates to implement RPS successfully.

Symmetric and Asymmetric Relationships Between Renewable Energy, Oil Imports, Arms Exports, Military Spending, and Economic Growth in China

This paper evaluates the symmetric and asymmetric relationships between military spending (MS) and oil imports (OIM) in China. In the long run, MS increases OIM, renewable energy (RE) consumption, and gross domestic product. OIM seem to have a non-linear and asymmetric impact on MS, both in the short run and the long run. It appears that China is prompt to reduce its MS considerably whenever it is assured of its energy security. This could be partially achieved by increasing its RE consumption, and the military sector is invited to contribute, especially through its R&D activities.