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The impacts of energy finance policies and renewable energy subsidy on energy vulnerability under carbon peaking scenarios

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  • Pan, Yuling
  • Dong, Feng

Abstract

Energy finance is an important market instrument for carbon peaking, which may influence the energy vulnerability. This paper explores the impact of two energy finance policies combined with renewable energy subsidy (RES) on energy vulnerability under different carbon peaking scenarios. To this end, the total fossil energy and renewable energy consumption under different carbon peaking scenarios are calculated using a computable general equilibrium (CGE) model. Then, the sector-level energy use rights are allocated through the game equity fixed cost allocation model which considers equity, game and efficiency principles. Combining the consumption thresholds of renewable energy, the impacts of energy finance policies on energy vulnerability under different carbon peaking scenarios are investigated using an energy finance CGE model. The main results are as follows. (1) In the long run, the earlier the peaking time, the lower the energy vulnerability. (2) Under each peaking scenario, no energy finance policy implemented can minimize energy vulnerability before carbon peaking. After the peaking year, the implementation of energy finance policies can reduce energy vulnerability more significantly. (3) Among the three types of policy coupling , energy finance policies combined with RES can minimize national energy vulnerability and buffer the impact of energy finance policies on GDP.

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  • Pan, Yuling & Dong, Feng, 2023. "The impacts of energy finance policies and renewable energy subsidy on energy vulnerability under carbon peaking scenarios," Energy, Elsevier, vol. 273(C).
  • Handle: RePEc:eee:energy:v:273:y:2023:i:c:s0360544223006229
    DOI: 10.1016/j.energy.2023.127228
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