Development Of Renewable Energy Industry Research Articles

Analysis on the synergy between markets of electricity, carbon, and tradable green certificates in China

China has integrated tradable green certificates and carbon markets with its electricity sector to promote renewable energy and reduce carbon emissions. However, the impact mechanism of decision-making behaviors of involved entities in these integrated markets on the market equilibrium is still unclear, hence limiting the further development of renewable energy industries and carbon reduction progress to some extent. Therefore, conducting in-depth research to inform policy makers about the impacts of entities' decision-making behaviors on market equilibrium within the context of integrated multiple markets is crucial. This study aims to analyze the characteristics of entities' decision-making behaviors and equilibrium states within the collaborative dynamics of carbon, electricity, and green certificate markets. Specifically, an optimal decision-making model for entities given the multi-market coupling was developed by employing mathematical programming methods to analyze market equilibriums across various market combinations and policy parameters. The conclusions underscore equilibrium price shifts and decision-making characteristics among entities across multiple markets. The result shows that the carbon market could increase power prices and decrease green certificate prices. To ensure sustainable energy development, policymakers should consider the decision-making behavior of entities under multi-market coupling, which can promote the low-carbon transformation of the Chinese energy industry.

The performance of specialized and oriented diversified firms: A comparative analysis from the targeted expansion of renewable energy business of listed companies

With the rise of high-tech industry and the continuous change of business scope of enterprises, it is vital to study the different performance between enterprises with professional development and enterprises with business orientation expansion across the industrial chain, and this process is related to the industrial development background of the region where the enterprises are located. The development of renewable energy industry provides an excellent opportunity for this research. By identifying the business data of Chinese listed renewable energy companies from 2003 to 2021, this paper explores the performance of their renewable energy business expansion, and further uses the US sample for comparative analysis. First, the empirical results show that the expansion of renewable energy business contributes to the outstanding performance of firms. Second, compared with American enterprises, Chinese enterprises have achieved greater relative performance improvement in expanding renewable energy business, which is mainly due to the advantages of directional transformation of Chinese manufacturing enterprises. Finally, China's policy environment is conducive to professional enterprises to achieve more outstanding performance when expanding renewable energy business. This study helps to understand the differences between specialized development companies and directional diversified business expansion companies, and has certain implications for the development of the renewable energy industry and industrial policies.

ПРАВОВЕ РЕГУЛЮВАННЯ ВІДНОВЛЮВАЛЬНОЇ ЕНЕРГЕТИКИ: ЄВРОПЕЙСЬКИЙ ТА УКРАЇНСЬКИЙ ПІДХОДИ

Fossil fuel sources are the main source of energy in the energy sector, meanwhile dependence on natural gas and oil is the biggest cause of the environmental crisis. In the future, the demand for energy will grow, and this problem cannot be solved only through non-renewable sources. In recent decades, positive changes have been observed around the world towards expanding renewable energy capacities as an alternative way to meet the growing energy problems of humankind and prevent further consequences of climate change on our planet. It was noted that at the moment there has not been adopted a unified international document that would regulate the sphere of using alternative energy sources and would be mandatory for execution, despite the growing interest in alternative energy sources. The European vector of Ukraine’s development contributes to the interest in the legal regulation of renewable energy in the European Union. The development of renewable energy industry sources is an important element of the sustainable development strategy, in particular: at the global level – the Sustainable Development Goals for the period up to 2030, adopted in September 2015 by the UN General Assembly; at the regional level – the EU Sustainable Development Strategy; at the national level – Basic principles (strategy) of the state environmental policy of Ukraine for the period up to 2030. There were considered the provisions of the EU directives, the EU Sustainable Development Strategy, the EU Strategy in the field of energy and the fight against climate change until 2030, which are related to renewable energy industry. It were drawing attention to the broad interpretation of alternative energy sources in the legislation of Ukraine in comparison with the European approach, as well as to the ambiguous understanding of this term. It has been proven that the introduction of renewable energy industry sources in Ukraine is going on rather slow, which is primarily due to the imperfection of domestic legislation in this area, as well as low investment indicators in this promising branch of the national economy. The harmonization of the national regulatory framework with European legislation on this issue is attributed as the positive features of the legal regulation in the sphere of development of renewable energy industry.

Review of Renewable Energy Subsidy System in China

In the context of the ‘carbon peaking and carbon neutrality goals’, renewable energy, with its clean and low-carbon characteristics, has become one of the key driving forces for sustainable development in China. However, the inherent disadvantages of the renewable energy industry, such as high initial investment costs, technical difficulties, and slow returns on investment, make it difficult to compete with traditional fossil energy sources in the market economy at the initial stage of its establishment. Therefore, after considering the environmental and ecological value, economic value, and industrial growth dilemma brought by the development of renewable energy industry, subsidies as a governmental incentive measure were created to support the development and growth of the renewable energy industry. At present, there are many problems with China’s renewable energy subsidy policy in practice, such as fragmented institutional policies, lack of procedural regulations, and lagging subsidy funds. The excellent legislative practice experience of foreign countries can be borrowed by China to make up for the corresponding loopholes and, on the basis of fully examining the specific conditions of China, to promote the progressive reform of China’s renewable energy subsidy system; form a trinity system of law, general strategy, and specific policies; strengthen collaboration; and enhance its scientific level. At the same time, China can actively broaden the sources of subsidy funds, explore diversified financing methods, further standardize the subsidy procedures, strengthen the supervision in implementation, and enhance the efficiency of the utilization of funds, so as to enhance the legalization of the subsidy system.

Research on the Coordinated Development Strategy of Renewable Energy Industry in Henan Province

The renewable energy industry in Henan Province suffers from uneven development rate and unreasonable structure of various types of renewable energy, high industrial development cost, financing difficulties, and insufficient consumer demand, which seriously restrict the coordinated development of the industry. In order to promote the coordinated development of renewable energy industry in Henan Province, this paper proposes the solution strategies including strengthening the scientific planning of the industry, determining the key development areas, improving the awareness level of renewable energy among residents, and cultivating the consumption demand of renewable energy.

The development of renewable energy industry under renewable portfolio standards: From the perspective of provincial resource differences

A low-carbon energy policy is an effective measure for promoting the development of renewable energy(RE). China has introduced renewable portfolio standards(RPS) and voluntary subscription for tradable green certificates(TGCs), but the market response is not significant. China's electricity trading functions at provincial-level regions, and there are differences in resources between the provinces. New policies need to consider the characteristics of each province to reduce market implementation risk for introduction and implementation. Therefore, based on the provincial characteristics of energy resource endowment in China, we construct a system dynamics(SD) model of the coupling of the RE market, consumption above quota(CAQ), and TGC market based on the structure of the sending-end grid(SG) and receiving-end grid(RG). Three types of TGC models were designed based on the scope of the TGC market. Finally, the impact of policy parameters such as the RPS target, inter-provincial transmission capacity, TGC validity period, and technology cost on the development of RE industries in both SG and RG was analyzed. The results show that the TGC market to be developed independently in various provinces in the initial stage and later expanded into a unified market. Increased RPS requirements, increased inter-provincial transmission capacity, and lower RE costs can enhance policy implementation.

Determinants of China's renewable energy industry development: do eco-innovation and financial inclusion matter?

Fossil fuels are causing irreparable damage to the environment and lead to the depletion of reservoirs of coal, oil, and gas, which may give rise to the issue of energy scarcity and security. Therefore, policymakers and empirics have looked for alternative sources of energy that are affordable, reliable, and clean sources of energy. Consistent with this view, we have tried to examine the impact of eco-innovation and financial inclusion on renewable energy development in China. In order to empirically investigate, we have applied the autoregressive distributive lag model. The long-run estimates of eco-innovations are statistically significant and positive models, confirming that environmental-related innovations help increase the production of different renewable energy. Similarly, the long-run estimates of financial inclusion are positively significant, implying that an increase in financial inclusiveness intensifies the production of solar, biomass, and renewable energy in China. Generally, our findings imply that both eco-innovations and financial inclusion help increase renewable energy production in China in the long run.

Price volatility spillovers between Canadian and US, agricultural and fuel markets

A good understanding of risk transmission between agricultural and energy industries can be important to the sustainability of agriculture and the development of renewable energy industries. Literature has shown that the volatility of international agricultural and energy markets has mutual influences, and that these influences may change over time and space. This analysis adds value to the literature by identifying whether, and to what extent, price and volatility spillovers exist between the Canadian wheat market and US corn and energy markets (i.e. gasoline and ethanol). Though many studies have investigated pass-through between corn and energy markets, the addition of wheat markets in Canada is of interest because of the increasing use of wheat in producing first generation ethanol, and the potential for second generation ethanol that could use Canadian wheat straw as a feedstock. Our investigation adopts a modified vector error-correction model with a multivariate generalized autoregressive conditional heteroskedasticity framework. Key results include: (1) wheat and ethanol prices adjust to a deviation in the equilibrium relationship with corn and gasoline prices; (2) price volatility in the wheat market is only affected by its own shocks, not by the spillovers from US corn, ethanol or gasoline markets; (3) corn price volatility is not affected by shocks to wheat, ethanol, or gasoline markets. However, corn price volatility is largely affected by the covariance between wheat and corn. This information is useful for developing business strategies, as well as for policy makers interested in the development of a second-generation wheat straw-based ethanol industry in Canada. Our results also improve the understanding of impacts of US energy policies on Canada.

Ecosystems allowing the development of renewable energy industry: the Region of Casablanca-Settat

Ecosystems allowing the development of renewable energy industry: the Region of Casablanca-Settat

How renewable energy alleviate energy poverty? A global analysis

The development of renewable energy industry is an important measure for countries to strengthen the construction of ecological civilization. Thus, to empirically investigate the underlying effect of renewable energy consumption on global energy poverty alleviation, we first assess the energy poverty composite index across the globe, and then explore whether the rapid development of renewable energy industry can help alleviate energy poverty. The regional heterogeneity and the mediating role of energy efficiency in the renewable energy-poverty alleviation nexus are also discussed. We conclude that: (1) Global energy poverty shows a significant trend of allevia.tion in the sample period, and rapid development of renewable energy industry can help alleviate energy poverty; (2) significant regional heterogeneity exists in the relationship between renewable energy and poverty alleviation. Only in European countries can increased renewable energy significantly reduce energy poverty; and (3) the mediating role of energy efficiency in the renewable energy-poverty alleviation nexus is significant; in other words, renewable energy not only directly alleviates global energy poverty, but also has a significant inhibiting effect on energy poverty by improving energy efficiency. Following the above three conclusions, we provide relevant policies about how to alleviate energy poverty and improve energy efficiency.

Financial Engineering of Green Finance as an Element of Environmental Innovation Management

Currently, the Ukrainian economy is beginning to implement the concept of «green» finance at the legislative level. But the minimum legal framework is already present to protect the environment of Ukrainians. The management of eco-innovation is essential, as most countries that negatively contribute to the sustainable environment are primarily countries with significant financial shortfalls. The article aims to determine the basic theoretical and practical principles of financial engineering of green finance as an element of environmental innovation management. European countries were selected to study the possibilities of financial engineering of green finance as an element of environmental innovation management. The study period is 2000-2020. The article analyzes and studies the main indicators of energy production and usage, adjusted savings, rent for using natural energy sources, Environmental Performance Index 2020, environmental health indicator, and other indicators for the studied countries. Regarding the possibilities of green financing in Ukraine, the existing normative legal acts are considered. For developing areas for improving the management of environmental innovations, this study was conducted in the following logical sequence: built a multifactor linear regression model net inflows of foreign direct investment; the influence of factors on the performance indicator is determined; the most influential factors for determining the directions of future improvement have been identified. The authors confirmed thAT the financial engineering of green finance is a tool that combines the world of finance, innovation, and business with environmental behavior. It is an activity area for many participants, including individual and business consumers, manufacturers, investors, and financial lenders. Unlike traditional financial activities, green finance focuses on environmental friendliness and pays more attention to the environment. Thus, investing in climate change and clean energy knowledge could better assess risk and return. Two important strategies in global sustainable development are energy efficiency and the development of renewable energy sources. As for the development of renewable energy industries, the main factor hindering the development of industrialization is the lack of capital and an effective financing mechanism.

Industrial characteristics of renewable energy and spatial aggregation correlations in Beijing–Tianjin–Hebei

Beijing–Tianjin–Hebei is a key development zone in China, and the renewable energy industry is particularly concerned. This paper aims to combine spatial information with renewable energy industry to reveal the spatial-temporal evolution characteristics of industry and its driving factors. It is found that the industries in Beijing, Tianjin and Hebei show an obvious agglomeration pattern, with the renewable energy industry in the Beijing–Tianjin–Hebei region showing Moran’sI = 0.385579 during 2005–2010, Moran’sI = 0.319463 during 2010–2015, and Moran’sI = 0.329409 during 2015–2020. The global spatial autocorrelation analysis shows that the agglomeration level of the renewable energy industry in the Beijing–Tianjin–Hebei region has not increased, but the local spatial autocorrelation shows that the areas with higher transportation and business levels tend to be significantly agglomerated in space. Through the Moran index, it is found that the industry in Beijing–Tianjin–Hebei presents an obvious agglomeration pattern, and through the hotspot analysis, the industrial agglomeration is found mainly occurs in Beijing, Tianjin, Shijiazhuang and Zhangjiakou, which can be explained by the factor agglomeration effect brought by urbanization. However, we further calculated the location quotient, Herfindahl coefficient and Gini coefficient, and found significant regional differences in Beijing–Tianjin–Hebei region. For example, the unipolar agglomeration effect was weakening. Further three-phase space ellipse more vividly reveals the Beijing–Tianjin–Hebei region of renewable energy industry in the past 20 years continued to form the benign industrial expansion. Starting from the capital Beijing, the industry moved southwest, driving the development of renewable energy industry in Hebei and Tianjin, and promoting the coordinated development of the Beijing–Tianjin–Hebei economic circle.

The Development of Renewable Energy Industry Under Renewable Portfolio Standards: From the Perspective of Provincial Resource Differences

The Development of Renewable Energy Industry Under Renewable Portfolio Standards: From the Perspective of Provincial Resource Differences

Effects of herding behavior of tradable green certificate market players on market efficiency: insights from heterogeneous agent model

Tradable green certificate (TGC) scheme promotes the development of renewable energy industry which currently has a dual effect on economy and environment. TGC market efficiency is reflected in stimulating renewable energy investment, but may be reduced by the herding behavior of market players. This paper proposes and simulates an artificial TGC market model which contains heterogeneous agents, communication structure, and regulatory rules to explore the characteristics of herding behavior and its effects on market efficiency. The results show that the evolution of herding behavior reduces information asymmetry and improves market efficiency, especially when the borrowing is allowed. In addition, the fundamental strategy is diffused by herding evolution, but TGC market efficiency may be remarkably reduced by herding with borrowing mechanism. Moreover, the herding behavior may evolve to an equilibrium where the revenue of market players is comparable, thus the fairness in TGC market is improved.

System dynamics-based effectiveness and sustainability analysis of renewable energy generation policy in China

As the Chinese government has promulgated many renewable energy generation policies to reduce carbon emissions and stimulate the renewable energy industry, it is vital to assess the policy effectiveness and extent to which they encourage sustainable renewable energy generation. This paper focused on the most prominent and the best-performing policy mechanisms feed-in tariffs (FIT) and renewable portfolio standards (RPS), and developed a system dynamics model to comprehensively evaluate the effectiveness and sustainability of the renewable energy generation policies. The model clearly shows the complex causal relationships between the related economic and environmental factors, and the policy scenarios were simulated to indicate the future trends and illustrate the coordination processes between polices and compare the development effects. The results show that current FIT has no obvious impact on the sustainable development of renewable energy industry, while under the integrated scenario, the RPS quota growth rate and fines have a significant positive effect after the construction period. The findings also suggest that a FIT-RPS integrated renewable energy generation policy and a perfect RPS trading system should be prioritized, and the RPS quota ratios and fines should be appropriately increased. As various policies cannot be simultaneously implemented because of financial and resource limitations, the proposed system of dynamics-based analysis approach is useful to analyze policy effectiveness and long-term industry sustainability to ensure the provision of optimized policies. It can also provide guidance for similar problems in different areas as well as decision support for further renewable energy generation policy development.

Heterogeneity in farmers’ willingness to produce bioenergy crops in the Midwest USA

AbstractPrevious studies indicate that “hesitation” and “skepticism” are important barriers to the development of renewable energy industries in the United States. We examine whether key pecuniary and nonpecuniary characteristics of bioenergy crops underlie the hesitation argument. Based on a stated choice experiment, we find that Midwestern producers appreciate certain crop attributes that are found in switchgrass, but not in conventional crops. We also find that producers would be willing to grow switchgrass-like crops for net margins between $222/acre/year and $247/acre/year in marginal counties. We argue that farmers’ hesitation and skepticism toward bioenergy crops can be overcome.

Стратегічні аспекти економіко-енергетичної політики України в контексті сталого розвитку

The article is aimed at developing strategic directions and introducing regulatory measures for the formation of Ukraine’s energy policy on the principles of energy saving and the development of renewable energy industry. On the basis of scientific works, the main organizational-economic vectors of energy industry sector development are systematized, which are associated with the formation of a favorable socio-political climate regarding the priority of using renewable energy sources in the fuel and energy complex; development of effective methods of both the State-based and the market-based regulation by the world community; coordination of the strategy of sustainable development of the world economy. It is determined that the energy saving policy should be based on a flexible combination of the State-based regulation and the market environment for the formation of the most acceptable stimulation mechanisms in the specific economic and political situations, which allows for the greatest economic benefit. It has been found out that the implementation of energy saving processes is impossible without the mass use of renewable energy carriers, which are a universal resource for processing to the right types of energy, are marked by energy independence related to obtaining economic benefits and contribute to the creation of an ecological friendly environment. In the perspective, the energy saving processes, the transition of the national economy to wide implementation in the production of high-tech technologies and the use of renewable energy sources should become the determining factors of Ukraine’s energy strategy.

Insights of Japan’s Development Strategy of Hydrogen Society on Xinjiang’s Development in Hydrogen Production with Residual Electricity

As China’s important energy base and with its favorable geographical position, Xinjiang is the key region in the development strategy of China’s “Silk Road Economic Belt”. This paper first examines in depth the developmentstrategy and status quo of Japan’s hydrogen society, and then illustrates the current state of Xinjiang’s wind and solar energy development. Combining Xinjiang’s current situation of “wind and solar energy curtailment”, the paper focuses on discussing the necessity of hydrogen production by residual electricity in promoting Xinjiang’s renewable energy market development, and also gives analysis on the prospect and major existing obstacles of Xinjiang’s development in hydrogen production with residual electricity. The research content of this article has positive significance for the healthy development of renewable energy industry in Xinjiang.

Przestrzenny wymiar funkcjonowania i rozwoju energetyki odnawialnej na Ukrainie

Celem pracy jest ocena osiągniętego poziomu rozwoju energetyki odnawialnej na Ukrainie ze szczególnym akcentem na przestrzenny wymiar jej funkcjonowania. W zakresie autorskich dociekań znalazły się m.in. kwestie przestrzennej struktury oszacowanego potencjału technicznego odnawialnych źródeł energii (OZE), zróżnicowania przestrzennego produkcji energii ze źródeł odnawialnych oraz polityki wspierania inwestycji w energetykę odnawialną i popularyzacji wiedzy o OZE na Ukrainie. Materiał do badań pochodzi z ogólnodostępnych raportów analitycznych, roczników i opracowań statystycznych publikowanych przez specjalistyczne agencje rządowe i międzynarodowe oraz instytucje naukowe. Dane źródłowe są analizowane z wykorzystaniem podstawowych narzędzi statystyki opisowej oraz metod analizy przestrzennej. Jak wynika z przeprowadzonych badań, znaczenie OZE w miksie energetycznym Ukrainy jest nadal znikome. Dotyczy to wykorzystania potencjału technicznego, mocy zainstalowanej oraz udziału w strukturze produkcji energii.Rozkład przestrzenny produkcji energii ze źródeł odnawialnych wykazuje znaczące zróżnicowanie, będące konsekwencją zróżnicowania jego potencjału. Istotnym warunkiem dalszego rozwoju energetyki odnawialnej na Ukrainie jest dostępność źródeł finansowania. Niestety, państwowe wsparcie instytucjonalne, w tym finansowe, dla tego typu inwestycji jest bardzo ograniczone tak pod względem skali, formy i miejsca, jak również czasu finansowania.

Determinants of Chinese SMEs’ Entry to ASEAN Renewable Energy Market

ASEAN communities seek such resources as technologies and products from other countries to develop solar energy for sustainable development. In response to that, major renewable-utilization advanced countries including China has introduced funds, technology, and products into ASEAN. Despite the fact that China SMEs have a strong willingness to enter ASEAN solar energy market and ASEAN has demanded to develop the solar energy industry, only a few of them have succeeded in operation in the long-run. Introducing renewable energy technology and products from one place to another or bringing them from laboratory into community is not just a process of capital equipment supply from one firm to another but also includes the transfer of skills and know-how for operating and maintaining technology hardware, and knowledge for understanding this technology so that further independent innovation is possible by recipient. The purpose of this research was to determine the dynamic elements for China SMEs entering into the solar energy market of middle-income ASEAN member states. This participatory research collects data from both primary and secondary sources. Primary data sources include a questionnaire for 408 respondents of whom background across government officials, research personnel and industry, and interviews for 24 of them. Secondary data include reports from the Asian Development Bank, ASEAN Centre for Energy and other related documents from ASEAN governments. Data collected from the questionnaire were firstly analyzed through quantitative way: the value of Mean, Standard Error of Mean, Median, Standard Deviation (Std.) and Variance of each element were calculated. Information collected from interviews were then analyzed through the qualitative way. The results showed that policy environment, level of industrial and economic development, people’s willingness to cooperate, correct policy interpretation, capacity building and the presence of a third-party intermediary agency are the determinants of Chinese SME's successful entry to ASEAN renewable energy market. The mature policy environment of the ASEAN, need of industrial upgrading and sound economic development would facilitate the development of renewable energy industry, meanwhile, the strong willingness to cooperate, correct policy interpretation on preferential policies, well capacity building of both cooperative sides and the presence of a third-party intermediary agency would promote the cooperation between Chinese SMEs and relevant partners of ASEAN and the sustainable operation of Chinese SMEs in ASEAN.