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The Role of Institutional Support in Energy Technology Diffusion in Rural China


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  • Zhang, X.L.
  • Groenendaal, W.J.H. van

    (Tilburg University, Center for Economic Research)


In the past China's rural areas, home to 70% of its population, suffered energy shortages.China's indigenous energy resources are limited, with the exception of coal.The widespread use of coal requires large investments in production and transport -making it costly-, and degrades the environment.As a result the Chinese government has implemented an energy policy that aims at the use of renewable energy resources and increasing energy efficiency.For this the Chinese government has reorganised its institutional framework, which now aims at learning and improving profitability to diffuse technologies.Simultaneously the decision to use a technology has been shifted from officials to the consumers and profitability of a technology has become the main decision criterion.This paper analyses the effect of learning and profitability in technology diffusion and looks at the effectiveness of the institutional efforts.

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Bibliographic Info

Paper provided by Tilburg University, Center for Economic Research in its series Discussion Paper with number 2001-6.

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Date of creation: 2001
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Handle: RePEc:dgr:kubcen:20016

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Keywords: energy; technology transfer; learing; government policy; institutional framework;

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  1. Stoneman, Paul & Diederen, Paul, 1994. "Technology Diffusion and Public Policy," Economic Journal, Royal Economic Society, vol. 104(425), pages 918-30, July.
  2. Hassett, Kevin A. & Metcalf, Gilbert E., 1993. "Energy conservation investment : Do consumers discount the future correctly?," Energy Policy, Elsevier, vol. 21(6), pages 710-716, June.
  3. Groenendaal, W.J.H. van, 1998. "The Economic Appraisal of Natural Gas Projects," Open Access publications from Tilburg University urn:nbn:nl:ui:12-3804778, Tilburg University.
  4. Adam B. Jaffe & Robert N. Stavins, 1994. "Energy-Efficiency Investments and Public Policy," The Energy Journal, International Association for Energy Economics, vol. 0(Number 2), pages 43-66.
  5. Bewley, Ronald & Fiebig, Denzil G., 1988. "A flexible logistic growth model with applications in telecommunications," International Journal of Forecasting, Elsevier, vol. 4(2), pages 177-192.
  6. Richard B. Howarth & Alan H. Sanstad, 1995. "Discount Rates And Energy Efficiency," Contemporary Economic Policy, Western Economic Association International, vol. 13(3), pages 101-109, 07.
  7. Groenendaal, W.J.H. van & Kleijnen, J.P.C., 1997. "On the assessment of economic risk: Factorial design versus Monte Carlo methods," Open Access publications from Tilburg University urn:nbn:nl:ui:12-73903, Tilburg University.
  8. Kleijnen, J.P.C. & Groenendaal, W.J.H. van, 1992. "Simulation: A statistical perspective," Open Access publications from Tilburg University urn:nbn:nl:ui:12-388278, Tilburg University.
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