IDEAS home Printed from https://ideas.repec.org/a/eee/ecanpo/v87y2025icp2311-2329.html
   My bibliography  Save this article

An inter-provincial spontaneous cooperation mechanism design for renewable energy electricity consumption under the weight of consumption responsibility policy

Author

Listed:
  • Zhao, Laijun
  • Zhen, Juntao
  • Wang, Chenchen
  • Cheng, Youfeng
  • Yi, Hongru
  • Wang, Ke
  • Zeng, Lijun
  • Xue, Jian

Abstract

The spatial mismatch between renewable power supply and demand in China creates various costs and pressures for provinces to meet their green electricity consumption targets under the current independent consumption model (ICM). To address this dilemma, this study designs an inter-provincial spontaneous cooperation consumption mechanism, which includes constructing a cooperative consumption model (CCM) and designing incentive mechanisms to promote spontaneous cooperation. Firstly, a Generalized Nash Equilibrium (GNE) model is constructed for inter-provincial cooperative consumption of green electricity, considering the "certificate-electricity integration" mechanism for green electricity trading. Secondly, we analyzed the existence and uniqueness of solutions for the GNE model and developed a method for solving it. In addition, we established a consumption volume transfer fee to promote spontaneous cooperation. Finally, we conducted an empirical study in a cooperative region that consisted of Beijing, Shandong, Shaanxi, and Inner Mongolia. Under the CCM, the provinces' total cost decreased by 141.646×108 CNY (9.618 %), and found that a unit consumption volume transfer fee priced between 0.476 CNY/kWh and 0.550 CNY/kWh effectively promoted the spontaneous cooperation. Our cooperation mechanism would help Chinese provinces develop economically viable consumption strategies and alleviate the pressure on provinces scarce in renewable energy to meet their consumption targets.

Suggested Citation

  • Zhao, Laijun & Zhen, Juntao & Wang, Chenchen & Cheng, Youfeng & Yi, Hongru & Wang, Ke & Zeng, Lijun & Xue, Jian, 2025. "An inter-provincial spontaneous cooperation mechanism design for renewable energy electricity consumption under the weight of consumption responsibility policy," Economic Analysis and Policy, Elsevier, vol. 87(C), pages 2311-2329.
  • Handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:2311-2329
    DOI: 10.1016/j.eap.2025.08.017
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0313592625003364
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eap.2025.08.017?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to

    for a different version of it.

    More about this item

    Keywords

    ;
    ;
    ;

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:ecanpo:v:87:y:2025:i:c:p:2311-2329. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    We have no bibliographic references for this item. You can help adding them by using this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.journals.elsevier.com/economic-analysis-and-policy .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.