Chinese Renewable Energy Research Articles

What determines the productivity growth? Evidence from Chinese renewable energy firms by using Bayesian stochastic frontier approach

This paper examines the determinants of the total factor productivity (TFP) growth of Chinese renewable energy firms from 2011 to 2016, using a Bayesian stochastic frontier approach. Employing the “Bauer–Kumbhakar” decomposition method, the TFP growth is decomposed into the technology part and the market part. The empirical results reveal that the TFP improvement of Chinese renewable energy firms is mainly due to technical progress, followed by technical efficiency change. With regard to the market part, the misallocation of production factors has hindered the TFP growth. Our findings also indicate that only for large firms, the TFP growth can benefit from the scale economy effect. Compared with non‐state‐owned firms, state‐owned firms suffer much lower allocative efficiency.

The impact of political connections on the efficiency of China's renewable energy firms

This study investigates the impact of political connections on firm efficiency as well as its mechanisms in Chinese renewable energy firms. The empirical results reveal a direct negative association between political connections and firm efficiency and an indirect correlation through political resources. The results indicate that the higher the level of political connections, the stronger the relationship between political connections and firm efficiency. Our findings also indicate that the impact of political connections is different between state-owned and non-state-owned firms. For state-owned firms, political connections are negatively correlated with firm efficiency and government subsidies are not beneficial for state-owned firms in promoting productivity. As for non-state-owned firms, there is a ‘double-edged sword’ effect of political connections on firm efficiency. On the one hand, political connections are associated with lower firm efficiency, but on the other hand, political connections can alleviate the adverse effects of financing constraints on non-state-owned firms.

Model and application of renewable energy accommodation capacity calculation considering utilization level of inter-provincial tie-line

At present, the problem of abandoning wind and PV power in “Three North” region of China is particularly significant, and how to alleviate this problem has become the focus of universal attention. Calculation of renewable energy accommodation capacity is the basis to solve the problem of abandoning wind and PV power. Main problems of Chinese renewable energy accommodation is analyzed from power supply, power grid and load side aspects, and it focuses on the effect of inter-provincial tie-line to renewable energy accommodation capacity. At present, the inter-provincial tie-line utilization level is limited, which affected renewable energy accommodation to a certain extent. Based on the sequential production simulation model, a new kind of renewable energy accommodation capacity model is put forward considering the utilization level of inter-provincial tie-line. According to different system stability constraints and different electricity constraints of inter-provincial tie-line, 4 schemes are designed for comparative analysis, and the evaluation model is used to calculate renewable energy accommodation capacity of “Three North” region of China in 2020. Example analysis results verify validity of the model that releasing curve constraints, electricity constraints and stability constraints in turn can significantly enhance renewable energy accommodation capacity through effective use of inter-provincial tie-line transmission capacity. Research work in this paper can provide strong support for the planning and scheduling control of power grid.

Using the Binomial Model for the Valuation of Real Options in Computing Optimal Subsidies for Chinese Renewable Energy Investments

For the valuation and implementation of renewable energy investments, the issue of providing private investors with a financial incentive to accelerate their investment is frequently a critical component. We apply this principle to the Chinese context. This paper focuses on using the binomial model to compute the required subsidy that would incentivize investors to optimal immediate exercise of the American-style option embedded at the launching phase of the projects for Chinese renewable energy investments. In addition, this paper also aims at contrasting the binomial model with the more-laborious Monte-Carlo simulation previously used to evaluate the proper subsidy. By using the same data but a different method, and reducing the number of uncertain factors to one, it is suggested these two methods have similar outcomes but the binomial method requires substantially less computation and is more self-explanatory. This paper thus provides government with an easy-to-implement alternative way to compute the required subsidy.

Why invest in wind energy? Career incentives and Chinese renewable energy politics

We study wind development at the provincial level in China, modelling installed wind capacities as a function of both economics and politics. We assume that the top provincial officials desire to maximize their chances of promotion under the Chinese cadre evaluation system. We expect that those with the strongest incentives to perform in order to achieve promotion would work harder to comply with the central government’s policy agenda to promote renewable energy. Collecting and testing data on provincial leaders’ characteristics, we find that provinces governed by party secretaries who were approaching the age of 65 are associated with significantly higher level of wind installed capacities. This result supports the political tournaments theory of Chinese politics. We also find that better educated party secretaries are likely to be more supportive of renewable energy, implying that education acts to encourage provincial leaders to support the central government’s policy.

Plural Institutionalism and the Integration of Specialist Expertise in the Chinese Renewable Energy Consultative Drafting Process

China’s renewable energy institutions are contributing to regulatory development, through the utilization of specialist expertise in the consultative drafting process. While the Chinese legislative system remains instrumentalist at the level of the unitary, centralized State, a significant degree of pluralism has developed in the specialized institutions supporting the legislative and executive branches of the government. Gu Xin’s formulation of plural institutionalism is used as a framework for the analysis of the increasingly sophisticated and diverse institutions and inter-relationships involved. Interviews conducted in these institutions explore such pluralist regulatory development, through case studies of consultative drafting processes and institutional synergies. China’s scale-up of renewable energy supports its environmental and climate change, energy security, and economic modernization objectives. This action reflects the Chinese government’s scientific development concept and explains the involvement in the renewable energy consultative drafting process of a broad range of institutions. The view that the integration of heterodox views into the legislative process can enhance the scientific validity of outcomes also supports China’s pluralistic institutional approach. Limits on pluralism include centralized decision making through the State planning process and regulatory requirements regarding the registration and supervision of institutions. Nonetheless, the participation of Chinese renewable energy institutions in the consultative drafting process reflects a continuing emphasis on the value of more independent institutions and on the utilization of specialist expertise in institutions under the National People’s Congress and State Council. Thus, plural institutionalism is a key feature of the consultative drafting processes that have been central to renewable energy-related regulatory development in China.

Africa and the export of China’s clean energy revolution

The spectacular scale and speed of China’s domestic renewable energy capacity development and technology catch-up has in recent years been followed by the ‘go out’ of Chinese clean energy technology firms seeking new markets and opportunities in sub-Saharan Africa. This paper explores the growing involvement of China in the development and transfer of renewable energy technologies in Africa and examines the key drivers and obstacles shaping Chinese renewable energy investments and exports. Far from there being some kind of grand or harmonious strategy directed by a single monolithic state, we argue that fragmented and decentralised state apparatuses and quasi-market actors in China are increasingly pursuing their own independent interests and agendas around renewable energy in Africa in ways often marked by conflict, inconsistency and incoherence. Moving beyond the state-centric analysis common in much of the research on contemporary China–Africa relations, we examine the motivations of a range of non-state and quasi-state actors, as well their different perceptions and constructions of risk, policy environments and political stability in recipient countries. The paper explores the case study example of South Africa, where Chinese firms have become increasingly significant in the diffusion of renewable energy technology.

The impact of subsidies on overcapacity: A comparison of wind and solar energy companies in China

Determining the level of subsidy is an important measure in addressing overcapacity in Chinese renewable energy enterprises. In this article, we employ a threshold regression model to analyze the impacts of government subsidies on the overcapacity of wind and solar energy companies. Our findings indicate the separate subsidy thresholds for solar and wind energy companies. The results reveal that even where the subsidy falls into a relatively effective interval, it will still intensify the risk of overcapacity in solar energy companies, but can help address overcapacity in the wind energy companies. The paper concludes that the level of subsidies should be unique for each industry, and suggests a prudent reform of the subsidy policy for the solar energy enterprises.

The Opportunities and Challenges of Chinese Renewable Energy Greenhouse Gas Emission Reduction Trade

The opportunities and challenges in the field of Chinese renewable energy were analyzed through the impact of global greenhouse gas (GHG) emission reduction trade, especially CDM on Chinese renewable energy, combined with the enhancement of awareness of voluntary emission reduction, relationship between emission reduction trade and renewable energy, changes in the international trade environment and the rise of the domestic trading system. It is suggested that the renewable energy industry integrates with GHG emission reduction trading system in China and explores the huge double benefit of emission reduction and income increase with market means, providing a reference for the smooth implementation of nationwide CN ETS including varies industries in the carbon trading market in the future, and striving for the speaking right for China to set the marketing price of international GHG emission reduction trading in the future.

Chinese Renewable Energy Technology Exports: The Role of Policy, Innovation and Markets

Chinese companies have become major technology producers, with the largest share of their output exported. This paper examines the development of solar PV and wind energy technology component (WETC) exports from China and the competitive position of the country`s renewable energy industry. We also describe the government's renewable energy policy and its success in renewable electricity generation as well as increasing renewable energy innovation and foreign knowledge accumulation, which may drive export performance. We aim at empirically identifying determinants of Chinese solar PV and WETC exports. We estimate an augmented gravity trade model using maximum likelihood estimation. Besides controlling for standard variables derived from the gravity literature, we consider additional explanatory factors by accounting for market, policy and innovation effects steaming from both importing countries and China. We use a panel dataset representing annual bilateral trade flows of 43 countries from the developed and developing world that imported solar PV and WETCs from China between 1996 and 2008. The analysis shows that while the national market remained small for solar PV, the industry successfully entered foreign markets. The export performance of firms producing WETC increased but remained relatively small while the country developed a large home market. Empirical results indicate that high income countries, with a large renewable energy market and demand side policy support scheme, in terms of incentive tariffs, are increasingly importing solar PV components from China. We show that trade costs have a negative impact on exports of solar PV components but not WETC. Additionally, we find a positive impact of research and development (R&D) appropriation growth, especially from provincial governments in China, but no evidence that bilateral knowledge transfer and indigenous innovation affect exports.

Chinese Renewable Energy Technology Exports: The Role of Policy, Innovation and Markets

Chinese companies have become major technology producers, with the largest shares of their output exported. This paper examines the development of solar PV and wind energy technology component (WETC) exports from China and the competitive position of the country‘s renewable energy industry. We also describe the government’s renewable energy policy and its success in renewable electricity generation as well as increasing renewable energy innovation and foreign knowledge accumulation, which may drive export performance. We aim at empirically identifying determinants of Chinese solar PV and WETC exports. We estimate a gravity trade model using maximum likelihood estimation. Besides controlling for standard variables, we consider additional explanatory factors by accounting for market, policy and innovation effects steaming from both importing countries and China. We use a panel dataset representing bilateral trade flows of 43 developed and developing countries that imported solar PV and WETCs from China between 1996 and 2008. Empirical results indicate that high income countries, with large renewable energy markets and demand side policy support schemes, in terms of incentive tariffs, are increasingly importing Chinese solar PV components. We show that trade costs have a negative impact on exports of solar PV components but not WETC. Additionally, we find a positive impact of research and development appropriation growth, especially from provincial governments in China, but no evidence that bilateral knowledge transfer and indigenous innovation affect exports.

The Evaluation and Selection of Renewable Energy Technologies in China

With the increasing pressure to international energy supply, greater climate and environment problem related to the traditional fossil energy, many countries have decided to develop the renewable energy vigorously. Renewable energy technologies include hydro, wind, solar, biomass, ocean energy and geothermal. Different countries and regions have different choices on renewable energy technology because of their different economic, technical and environmental conditions. The academic has paid more and more attention to the evaluation and selection of renewable energy technology. This paper builds a comprehensive evaluation index system for Chinese renewable energy technology based on analytic hierarchy process (AHP) and data envelopment analysis (DEA), from economic, technology efficiency, social and environmental benefits. The result shows that wind and solar power are more suitable for Chinese economic, technical, environmental and social requirements, followed by biomass, hydropower, ocean energy, geothermal energy.

Network study of the distribution of talent in the Chinese renewable energy industry

Because of the current energy crisis, researchers and governments pay more attention to new and renewable energy. Renewable energy is a new area of development in China, and thus many talents are attracted to pursue research in these directions with the result that the renewable energy field has an urgent need to understand how the various talents are divided within the field and the statistical findings that can be determined from this. Based on this division and the statistical information it is possible to make decisions on how to plan for the renewable energy field's development in areas, for example, such as resource delivery. To begin with we can create a statistical map of the talents' social network based on the talent carriers and their research directions. Then we use top-k talents to represent the network and divide the network into k parts. Analyzing the properties of a single point's neighbors and the transition probability of these points and those around them, we propose the value of Neighbor Rank (NR). By taking the point's gravity into account we put forward the Gravity Rank (GR). We then combine these 2 models. The experiment not only gives a reasonable result but also the k parts are always the k main areas of the renewable energy field.

Analysis of Chinese Renewable Energy Engineering

Chinese renewable energy power generation construction is undergoing a rapid flourish nowadays, so a large amount of projects need to be contracted to engineer procure construct enterprises, namely EPC enterprises. However, high-level EPC enterprises always outsource specific activities to various vendors simultaneously, thus resulting in many outsourcing risks. This paper aims to find reasonable strategy against these risks. According to first hand empirical study, this article denotes outsourcing contract risk as the major one that EPC enterprise would confront, and categories it into two detailed risks, namely adverse choice and moral risk. A game model between EPC enterprise and vendor is established to discuss bilateral behaviors after signing contract. Nash equilibrium under mixed strategy is found based on two basic hypotheses. At last a two-side strategy called Carrot and Stick is suggested to avoid vendors malversation based on the analysis results.

Adverse Choice Analysis on Chinese Renewable Energy Power Generation Construction

Chinese Renewable energy Power Generation Construction (RPGC) is undergoing a rapid flourish nowadays, so a large amount of projects need to be contracted to engineer procure construct enterprises, namely EPC enterprises. However, high-level EPC enterprises always outsource specific activities to various vendors simultaneously, thus resulting in many outsourcing risks with regard to contract due to the underdeveloped Chinese RPGC outsourcing market mechanism. Based on the analysis of Chinese RPGC outsourcing market's features, an index evaluation system of vendor’s comprehensive ability is built up to help select the most suitable vendor, therefore reducing adverse choice risk. Moreover, with decrease of Chinese RPGC developing speed and gradual maturity of market, risks that EPC enterprises encounter will undoubtedly transmit and change, which are the risks requiring further research.

China's Renewable Energy Law and its impact on renewable power in China: Progress, challenges and recommendations for improving implementation

Beginning in 2006, China experienced a rapid growth in its renewable energy resources, particularly wind power, placing it among the world's leading countries in terms of renewable energy installation and generation. This growth was greatly enabled by the renewable energy policy framework created by its landmark Renewable Energy Law, passed in 2005 and amended in 2009, which established key policies including: national renewable energy targets; a mandatory connection and purchase policy; a national feed-in tariff system; and arrangements for cost-sharing and funding of renewable energy incentives.This paper describes the mechanisms established by the Renewable Energy Law and its implementing regulations, as well as the challenges China continues to face in improving its renewable energy policy framework to improve integration and utilization of renewable energy sources. It also provides a comparison of the Chinese renewable energy policy framework with those in the European Union and United States. Finally, the paper provides recommendations for improving implementation of the Renewable Energy Law, with regard to implementing a renewable power quota system and priority dispatch policy, developing technical standards for connection of renewable resources with the grid, development of a more advanced feed-in tariff system, and central-local coordination of renewable energy development.

Offshore wind development in China and its future with the existing renewable policy

Based on independent studies, this paper focuses on the significant discrepancy of 15 GW between the installed onshore wind generation capacity and what has been actually connected to the power network to reveal the challenges in meeting the Chinese renewable energy target. The recent accidents in Chinese North-Western transmission network (in February–April, 2011) demonstrated the urgent need for a fundamental review of the Chinese renewable energy policy. Offshore wind has been identified as the most feasible alternative to onshore wind to help deliver electricity to Eastern China during the summer peak time. By investigating and summarizing first hand experiences of participation in the Chinese renewable market, the authors provide the economic figures of the first cohort of Chinese offshore wind schemes. Large state owned enterprises (SOE) are dominating the offshore wind development, repeating their previous practices on the land. While this paper acknowledges the critical role of offshore wind generation in meeting Chinese renewable energy targets, it envisages an installed offshore capacity of approximately 2000 MW by 2015, much less than the 10000 MW governmental estimation, which can be attributed to the lack of detailed energy policy, network constraints, offshore wind installation difficulties and quality issues in the manufacture of turbines.

Making the Transition: EU-China Cooperation on Renewable Energy and Carbon Capture and Storage

Traditionally, Europe is considered to rank among the top performers in renewable energy. However, its lead in this area is increasingly challenged, notably by newcomer China. Keen to sustain its economic growth and ensure the availability of sufficient energy sources to that effect, China’s progress in the field of renewable energy is as much about security of supply, as it is about counteracting the effects of environmental degradation and climate change.1 In its efforts to safeguard its economic growth, China is increasingly competing with the EU over scarce fossil fuel sources, such as natural gas from Central Asia.2 The focus of EU-China energy cooperation is therefore as much structured in terms of managing the latter’s energy demand to limit its impact on climate change and the environment, as it is about relieving pressure on the Union’s own security of supply. Particularly since the second half of the 2000s, much has changed in China after the adoption of the Renewable Energy Law (REL or ‘the Law’) and the establishment of the EU-China Partnership on Climate Change at the 2005 EU-China summit. The Chinese renewable energy market has grown tremendously since and significant efforts have been put into cooperation on Carbon Capture and Storage (CCS) technologies. Despite of the renewable sector’s growth, several obstacles remain in the way of its further development, including problems feeding renewable energy into the grid; restrictive regulations concerning foreign ownership; a lack of enforcement of regulations and follow-up on bilateral cooperation; and the absence of a regulatory system that favours carbon captured electricity.

A Study on Chinese Renewable Energy Development Trend

A Study on Chinese Renewable Energy Development Trend

BIG BUSINESS AND INDUSTRY ASSOCIATION LOBBYING IN CHINA: THE PARADOX OF CONTRASTING STYLES

In spite of China's continued authoritarian political system, there is growing recognition that business lobbying is an integral part of the country's policy process at both the local and national levels. As thousands of economic regulations and laws have become key determinants of the fate of industry, all types of companies - state-owned and private, Chinese and foreign - have become active in every stage of the policy process, from setting the agenda to identifying policy options and shaping regulatory implementation. Whereas interacting with officialdom used to be the responsibility of an enterprise's senior leader, it is increasingly common for companies to have a defined position or team in charge of government affairs. ' The number of trade associations representing domestic and foreign companies has grown rapidly, with the greatest expansion recently seen in the proliferation of branches of municipal chambers of commerce outside their home localities (yidi shanghui (ProQuest: ... denotes non-USASCII text omitted.)). 2 Chinese Mainland scholars and journalists previously only used the term "lobbying" (youshui (ProQuest: ... denotes non-USASCII text omitted.)) to refer to the behavior of companies in capitalist countries or multinational companies (MNC) in China, but it is now associated with domestic companies' behavior at home.3 The discussion of "interest groups" (liyi jituan (ProQuest: ... denotes non-USASCII text omitted.)) is even more common.4 Not only has engagement of officialdom risen but, equally importantly, there is growing sentiment that lobbying pays off. Policies for different sectors and the broader economy have been shaped by corporate influence.5 In some sectors, such as energy, it appears that the basic trajectory has been determined less by a coherent government plan than by companies who have manipulated the government to adopt policies consistent with their interests.6 Lobbying affects both domestic and foreign economic policies, and companies lobby successfully for greater protection from imports and for increased liberalization.7 Nevertheless, although we know that industry is active and shapes policy, there is much less information about how industry engages policymakers. Companies lobby, both directly and through associations, but we have only a rudimentary knowledge of the actual strategies and tactics which they employ and of their rate of success. Some observers have emphasized the importance of personal connections (guanxi (ProQuest: ... denotes non-USASCII text omitted.)); but guanxi can be manifested in multiple ways.8 Recent private-sector analyses report that guanxfs currency is less valuable than in the past.9 Yet if so, what other tools are being utilized? Do different kinds of companies or associations engage government differently, and with different results? This article takes a step forward in developing a more comprehensive and systematic way to analyze business lobbying in China to increase our understanding of the tactics and strategies which companies and associations employ as they seek to influence national Chinese public policy. In so doing, we adapt the theoretical framework and methods used to study corporate political activity in advanced economies to the Chinese context. In particular, we report the results of recently conducted surveys of very large companies and national industry associations in China about their lobbying strategies vis-a-vis national government economic policies. The findings indicate surprising commonalities in lobbying behavior across a wide variety of companies, yet identify equally unexpected differences between companies and business associations. In the next section, we review the extant research on government-business relations in China to identify progress to date and the reason for continuing gaps in our knowledge. We then outline our research strategy, with a description of the overarching framework, the design of the surveys and the composition of the sampled companies and associations. …