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Evaluating environmental policy effectiveness on power structure: Insights from China's power sector regulations

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  • Zhang, Guoxing
  • Feng, Yichen
  • Su, Bin
  • Nie, Yan
  • Liu, Zenghui

Abstract

Environmental regulations in the power sector play a pivotal role in driving China's transition toward a sustainable power structure and the achievement of the “dual carbon” goals. This paper quantifies the environmental regulation intensity in China's power sector and examines its impact effects and mechanisms on power structure transformation using a panel Tobit model based on data from 30 provinces from 2005 to 2021. The results from our analysis show: 1) Environmental regulations have a greater impact on renewable energy installation structure than generation structure due to wind and photovoltaic curtailment. 2) There is a significant difference in the impact of policies on the renewable energy generation structure in areas with different resource endowment levels, but not with the installation structure.3) Financial measures have the most substantial impact on the transformation of the power structure among all policy types. 4) Technological innovation and Ultra-high voltage projects have significant positive moderating effects. To further advance the power structure transformation, the Chinese government is suggested to strengthen the use of financial measures, and further promote technological innovation and the construction of Ultra-high voltage projects.

Suggested Citation

  • 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).
    • Handle: RePEc:eee:eneeco:v:152:y:2025:i:c:s0140988325008382
    DOI: 10.1016/j.eneco.2025.109008
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