IDEAS home Printed from https://ideas.repec.org/a/eee/eneeco/v150y2025ics0140988325006735.html

The impact and path of influence of central–local government policy synergy on renewable energy development: Evidence from China

Author

Listed:
  • Yu, Shiwei
  • Guo, Yingying
  • Geng, Haopeng
  • Hu, Xing

Abstract

The effectiveness of macro control and protective measures implemented via renewable energy (RE) policies relies on the synergy between the central and local governments. Therefore, exploring the synergy between central and local policies and its influence is essential for improving policy outcomes and advancing RE development. Based on 6556 RE policies of central and 30 provincial local governments from 2005 to 2022, we apply latent Dirichlet allocation (LDA) to extract key topics. We then construct indicators of synergy in three dimensions: policy goal consistency, policy implementation, and policy innovation. Our fixed effects model reveals the paths by which central–local government synergy in RE policies influences the development of RE. The findings are as follows: 1) From 2005 to 2022, the overall policy synergy level saw significant improvement, rising from 0.06 to a peak of 2.81 in 2017, before slightly decreasing to 1.94. Regions such as Jiangsu and Guangdong, which are economically developed, and resource-rich provinces, such as Shaanxi and Shandong, present high levels of synergy. 2) The driving effects of the levels of policy innovation and central–local policy synergy on the development of RE are rather significant, as 1 % increases in the innovation and synergy levels lead to increases of 0.017 % and 0.023 %, respectively, in the power generation of RE. The positive effects are particularly notable in regions without abundant RE resources and weak power generation infrastructure. However, provinces with low levels of market development, such as Qinghai and Xinjiang, struggle to fully leverage the benefits of central–local policy synergy. 3) The synergy between central and local policies promotes RE development through two mechanisms: enhancing local governments' emphasis on green development (partial mediation) and expanding the scale of national subsidies for RE projects (fully mediation).

Suggested Citation

  • Yu, Shiwei & Guo, Yingying & Geng, Haopeng & Hu, Xing, 2025. "The impact and path of influence of central–local government policy synergy on renewable energy development: Evidence from China," Energy Economics, Elsevier, vol. 150(C).
  • Handle: RePEc:eee:eneeco:v:150:y:2025:i:c:s0140988325006735
    DOI: 10.1016/j.eneco.2025.108846
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0140988325006735
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.eneco.2025.108846?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.

    References listed on IDEAS

    as
    1. Joshua D. Angrist & Jörn-Steffen Pischke, 2010. "The Credibility Revolution in Empirical Economics: How Better Research Design Is Taking the Con out of Econometrics," Journal of Economic Perspectives, American Economic Association, vol. 24(2), pages 3-30, Spring.
    2. Bistline, John E.T. & Brown, Maxwell & Siddiqui, Sauleh A. & Vaillancourt, Kathleen, 2020. "Electric sector impacts of renewable policy coordination: A multi-model study of the North American energy system," Energy Policy, Elsevier, vol. 145(C).
    3. Grimmer, Justin & Stewart, Brandon M., 2013. "Text as Data: The Promise and Pitfalls of Automatic Content Analysis Methods for Political Texts," Political Analysis, Cambridge University Press, vol. 21(3), pages 267-297, July.
    4. Chai, Song & Liu, Qiyun & Yang, Jin, 2023. "Renewable power generation policies in China: Policy instrument choices and influencing factors from the central and local government perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 174(C).
    5. Djellouli, Nassima & Abdelli, Latifa & Elheddad, Mohamed & Ahmed, Rizwan & Mahmood, Haider, 2022. "The effects of non-renewable energy, renewable energy, economic growth, and foreign direct investment on the sustainability of African countries," Renewable Energy, Elsevier, vol. 183(C), pages 676-686.
    6. Hu, Xing & Yu, Shiwei & Fang, Xu & Ovaere, Marten, 2023. "Which combinations of renewable energy policies work better? Insights from policy text synergies in China," Energy Economics, Elsevier, vol. 127(PA).
    7. Safi, Adnan & Kchouri, Bilal & Elgammal, Walid & Nicolas, Melhim Khoury & Umar, Muhammad, 2024. "Bridging the green gap: Do green finance and digital transformation influence sustainable development?," Energy Economics, Elsevier, vol. 134(C).
    8. Abolhosseini, Shahrouz & Heshmati, Almas, 2014. "The main support mechanisms to finance renewable energy development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 40(C), pages 876-885.
    9. Li, Lili & Taeihagh, Araz, 2020. "An in-depth analysis of the evolution of the policy mix for the sustainable energy transition in China from 1981 to 2020," Applied Energy, Elsevier, vol. 263(C).
    10. Seemab Farooqi & Tom Forbes, 2020. "Enacted discretion: policy implementation, local government reform and education services in Pakistan," Public Management Review, Taylor & Francis Journals, vol. 22(8), pages 1217-1239, July.
    11. Zhiming Hu & Jie Xiong & Jie Yan & Zhe Yuan & Shubho Chakraborty, 2023. "The horizontal and vertical coordination of policy mixes for industrial upgrading in China: an ambidexterity perspective," Regional Studies, Taylor & Francis Journals, vol. 57(6), pages 1011-1028, June.
    12. Zelin Zhang & Kejia Yang & Jonathan Z. Zhang & Robert W. Palmatier, 2023. "Uncovering Synergy and Dysergy in Consumer Reviews: A Machine Learning Approach," Management Science, INFORMS, vol. 69(4), pages 2339-2360, April.
    13. Zhang, Fang, 2023. "Does not having an NDB disadvantage a country in finance mobilization for the energy transition? A comparative analysis of the solar PV deployment in the United States, Germany and China," Energy Policy, Elsevier, vol. 172(C).
    14. Debia, Sébastien & Pineau, Pierre-Olivier & Siddiqui, Afzal S., 2019. "Strategic use of storage: The impact of carbon policy, resource availability, and technology efficiency on a renewable-thermal power system," Energy Economics, Elsevier, vol. 80(C), pages 100-122.
    15. Liu, Dandan & Wang, Delu & Mao, Jinqi, 2023. "Study on policy synergy strategy of the central government and local governments in the process of coal de-capacity: Based on a two-stage evolutionary game method," Resources Policy, Elsevier, vol. 80(C).
    16. Yu, Bolin & Fang, Debin & Dong, Feng, 2020. "Study on the evolution of thermal power generation and its nexus with economic growth: Evidence from EU regions," Energy, Elsevier, vol. 205(C).
    17. Peng Xu & Qianqi Xu & Cunkuan Bao, 2023. "A Study on the Synergy of Renewable Energy Policies in Shandong Province: Based on the Coupling Coordination Model," Energies, MDPI, vol. 16(19), pages 1-17, September.
    18. Clement, Dr. Jessica & Crutzen, Prof. Nathalie, 2021. "How Local Policy Priorities Set the Smart City Agenda," Technological Forecasting and Social Change, Elsevier, vol. 171(C).
    19. Wang, Yang & Taghizadeh-Hesary, Farhad, 2023. "Green bonds markets and renewable energy development: Policy integration for achieving carbon neutrality," Energy Economics, Elsevier, vol. 123(C).
    20. Cao, Xun & Kleit, Andrew & Liu, Chuyu, 2016. "Why invest in wind energy? Career incentives and Chinese renewable energy politics," Energy Policy, Elsevier, vol. 99(C), pages 120-131.
    21. Guillermo M. Cejudo & Cynthia L. Michel, 2017. "Addressing fragmented government action: coordination, coherence, and integration," Policy Sciences, Springer;Society of Policy Sciences, vol. 50(4), pages 745-767, December.
    22. Zhiming Hu & Jie Xiong & Jie Yan & Zhe Yuan & Shubho Chakraborty, 2023. "The horizontal and vertical coordination of policy mixes for industrial upgrading in China: an ambidexterity perspective," Post-Print hal-04127187, HAL.
    23. Hu, Xing & Guo, Yingying & Zheng, Yali & Liu, Lan-cui & Yu, Shiwei, 2022. "Which types of policies better promote the development of renewable energy? Evidence from China's provincial data," Renewable Energy, Elsevier, vol. 198(C), pages 1373-1382.
    24. Zhiming Hu & Jie Xiong & Jie Yan & Zhe Yuan & Shubho Chakraborty, 2023. "The horizontal and vertical coordination of policy mixes for industrial upgrading in China: an ambidexterity perspective," Grenoble Ecole de Management (Post-Print) hal-04127187, HAL.
    25. Razzaq, Asif & Sharif, Arshian & Ozturk, Ilhan & Yang, Xiaodong, 2023. "Central inspections of environmental protection and transition for low-carbon Chinese cities: Policy intervention and mechanism analysis," Energy Economics, Elsevier, vol. 124(C).
    26. Liesbet, Hooghe & Gary, Marks, 2003. "Unraveling the Central State, but How? Types of Multi-level Governance," American Political Science Review, Cambridge University Press, vol. 97(2), pages 233-243, May.
    27. Coyle, Diane & Muhtar, Adam, 2023. "Assessing policy co-ordination in government: Text and network analysis of the UK's economic strategies," European Journal of Political Economy, Elsevier, vol. 79(C).
    28. Michael P. Keane & Timothy Neal, 2024. "A Practical Guide to Weak Instruments," Annual Review of Economics, Annual Reviews, vol. 16(1), pages 185-212, August.
    29. Dong, Changgui & Zhou, Runmin & Li, Jiaying, 2021. "Rushing for subsidies: The impact of feed-in tariffs on solar photovoltaic capacity development in China," Applied Energy, Elsevier, vol. 281(C).
    30. Yoshito Funashima, 2018. "Macroeconomic policy coordination between Japanese central and local governments," Empirical Economics, Springer, vol. 54(4), pages 1631-1651, June.
    31. Yang, Xiaolei & He, Lingyun & Xia, Yufei & Chen, Yufeng, 2019. "Effect of government subsidies on renewable energy investments: The threshold effect," Energy Policy, Elsevier, vol. 132(C), pages 156-166.
    32. Sperling, K. & Arler, F., 2020. "Local government innovation in the energy sector: A study of key actors’ strategies and arguments," Renewable and Sustainable Energy Reviews, Elsevier, vol. 126(C).
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Hu, Xing & Yu, Shiwei & Fang, Xu & Ovaere, Marten, 2023. "Which combinations of renewable energy policies work better? Insights from policy text synergies in China," Energy Economics, Elsevier, vol. 127(PA).
    2. Chuang Li & Jiating Liu & Liping Wang, 2025. "Research on the influence mechanism of public green behavior guiding policy effect: from the perspective of policy synergy system," Environment, Development and Sustainability: A Multidisciplinary Approach to the Theory and Practice of Sustainable Development, Springer, vol. 27(6), pages 12703-12744, June.
    3. Xu, Guangyue & Yang, Mengge & Li, Shuang & Jiang, Mingqi & Rehman, Hafizur, 2024. "Evaluating the effect of renewable energy investment on renewable energy development in China with panel threshold model," Energy Policy, Elsevier, vol. 187(C).
    4. Arne Henningsen & Guy Low & David Wuepper & Tobias Dalhaus & Hugo Storm & Dagim Belay & Stefan Hirsch, 2024. "Estimating Causal Effects with Observational Data: Guidelines for Agricultural and Applied Economists," IFRO Working Paper 2024/03, University of Copenhagen, Department of Food and Resource Economics.
    5. Luo, Guoliang & Liu, Yingxuan & Zhang, Liping & Xu, Xuan & Guo, Yiwei, 2021. "Do governmental subsidies improve the financial performance of China’s new energy power generation enterprises?," Energy, Elsevier, vol. 227(C).
    6. Yu, Chin-Hsien & Wu, Xiuqin & Lee, Wen-Chieh & Zhao, Jinsong, 2021. "Resource misallocation in the Chinese wind power industry: The role of feed-in tariff policy," Energy Economics, Elsevier, vol. 98(C).
    7. Lai, Aolin & Wang, Qunwei, 2024. "How coal de-capacity policy affects renewable energy development efficiency? Evidence from China," Energy, Elsevier, vol. 286(C).
    8. Lin Wang & Yugang He & Renhong Wu, 2024. "Digitization Meets Energy Transition: Shaping the Future of Environmental Sustainability," Energies, MDPI, vol. 17(4), pages 1-25, February.
    9. Wancheng Yang & Qi Zeng, 2024. "The role of executives’ social capital in improving merger and acquisition performance during corporate transformation and upgrading: Evidence from Chinese media enterprises," PLOS ONE, Public Library of Science, vol. 19(9), pages 1-24, September.
    10. Xing Zhu & Baoyu Liao, 2023. "Optimal investment decision for photovoltaic projects in China: a real options method," Journal of Combinatorial Optimization, Springer, vol. 46(5), pages 1-26, December.
    11. Bo Zhang & Yi Li, 2025. "Research on the Impact of Green Policies on the Transformation of Manufacturing Enterprises from the Perspective of Central-Local Collaboration," Sustainability, MDPI, vol. 17(11), pages 1-38, June.
    12. Fan, Mingming & Liu, Linlin, 2025. "Portfolio of China's renewable energy legal measures: Conflicts in application and functional harmonization," Energy, Elsevier, vol. 320(C).
    13. Chai, Song & Liu, Qiyun & Yang, Jin, 2023. "Renewable power generation policies in China: Policy instrument choices and influencing factors from the central and local government perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 174(C).
    14. Pan, Yuling & Dong, Feng, 2022. "Dynamic evolution and driving factors of new energy development: Fresh evidence from China," Technological Forecasting and Social Change, Elsevier, vol. 176(C).
    15. Pan, Yuling & Dong, Feng, 2023. "Green finance policy coupling effect of fossil energy use rights trading and renewable energy certificates trading on low carbon economy: Taking China as an example," Economic Analysis and Policy, Elsevier, vol. 77(C), pages 658-679.
    16. Zhang, Mingming & Guo, Qianxi & Liu, Liyun & Zhou, Dequn, 2025. "Renewable energy investment under the market-oriented transition of policies," Energy Policy, Elsevier, vol. 204(C).
    17. Hu, Xing & Guo, Yingying & Zheng, Yali & Liu, Lan-cui & Yu, Shiwei, 2022. "Which types of policies better promote the development of renewable energy? Evidence from China's provincial data," Renewable Energy, Elsevier, vol. 198(C), pages 1373-1382.
    18. Krzysztof Zamasz & Radosław Kapłan & Przemysław Kaszyński & Piotr W. Saługa, 2020. "An Analysis of Support Mechanisms for New CHPs: The Case of Poland," Energies, MDPI, vol. 13(21), pages 1-18, October.
    19. Zha, Donglan & Jiang, Pansong & Zhang, Chaoqun & Xia, Dan & Cao, Yang, 2023. "Positive synergy or negative synergy: An assessment of the carbon emission reduction effect of renewable energy policy mixes on China's power sector," Energy Policy, Elsevier, vol. 183(C).
    20. Zhang, Guoxing & Feng, Yichen & Su, Bin & Nie, Yan & Liu, Zenghui, 2025. "Evaluating environmental policy effectiveness on power structure: Insights from China's power sector regulations," Energy Economics, Elsevier, vol. 152(C).

    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:eneeco:v:150:y:2025:i:c:s0140988325006735. 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.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with 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.elsevier.com/locate/eneco .

    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.