IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v285y2023ics0360544223027792.html
   My bibliography  Save this article

The impact of government subsidy on photovoltaic enterprises independent innovation based on the evolutionary game theory

Author

Listed:
  • Zhang, Xi
  • Zhu, Qingyuan
  • Li, Xingchen
  • Pan, Yinghao

Abstract

Achieving a green, low-carbon economy necessitates clarifying the impacts of government photovoltaic (PV) subsidies on enterprise independent innovation in China. This study constructs a tripartite evolutionary game model among government, enterprises, and energy regulatory service centers (ERSC). It analyzes equilibriums' asymptotic stability and explores mechanisms affecting the system's evolution toward an ideal state. The results indicate that the strategic choices of the government, enterprises, and ERSC interplay with each other. Specifically, the primary influencing factors for enterprise innovation are costs, benefits, and penalties which promote innovation to an extent, while government subsidies have minimal effect. Under ERSC's policy guidance and services, enterprises controlling independent innovation costs given moderate punishment intensity enables system evolution toward sustainable innovation despite subsidy cancellation, achieving enterprises' ultimate carbon reduction goal in China. The originality in this study lies in the analysis of ERSC's influence on equilibrium, which models the impact of policies on enterprises, and ERSC plays an essential role in coordinating the government-enterprise information gap. Chinese government should strengthen regulatory system construction and increase financial support. This model can generate social benefits, reduce costs, and provide policymakers with an analytical framework and insights for policy formulation in China.

Suggested Citation

  • Zhang, Xi & Zhu, Qingyuan & Li, Xingchen & Pan, Yinghao, 2023. "The impact of government subsidy on photovoltaic enterprises independent innovation based on the evolutionary game theory," Energy, Elsevier, vol. 285(C).
    • Handle: RePEc:eee:energy:v:285:y:2023:i:c:s0360544223027792
    DOI: 10.1016/j.energy.2023.129385
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544223027792
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2023.129385?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 search for a different version of it.

    References listed on IDEAS

    as
    1. Yuechao Chao & Gang Wang, 2023. "Analyzing the Effects of Governmental Policy and Solar Power on Facilitating Carbon Neutralization in the Context of Energy Transition: A Four-Party Evolutionary Game Study," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    2. Guo, Peilian & Han, Changda, 2021. "Nash equilibrium and group strategy consensus of networked evolutionary game with coupled social groups," Applied Mathematics and Computation, Elsevier, vol. 409(C).
    3. McKenna, Eoghan & Pless, Jacquelyn & Darby, Sarah J., 2018. "Solar photovoltaic self-consumption in the UK residential sector: New estimates from a smart grid demonstration project," Energy Policy, Elsevier, vol. 118(C), pages 482-491.
    4. Pablo Martínez-Filgueira & Ekaitz Zulueta & Ander Sánchez-Chica & Gustavo García & Unai Fernandez-Gamiz & Josu Soriano, 2020. "Experimental Air Impingement Crossflow Comparison and Theoretical Application to Photovoltaic Efficiency Improvement," Sustainability, MDPI, vol. 12(14), pages 1-19, July.
    5. Xiong, Yongqing & Yang, Xiaohan, 2016. "Government subsidies for the Chinese photovoltaic industry," Energy Policy, Elsevier, vol. 99(C), pages 111-119.
    6. Fan, Ruguo & Dong, Lili, 2018. "The dynamic analysis and simulation of government subsidy strategies in low-carbon diffusion considering the behavior of heterogeneous agents," Energy Policy, Elsevier, vol. 117(C), pages 252-262.
    7. Tu, Qiang & Mo, Jianlei & Betz, Regina & Cui, Lianbiao & Fan, Ying & Liu, Yu, 2020. "Achieving grid parity of solar PV power in China- The role of Tradable Green Certificate," Energy Policy, Elsevier, vol. 144(C).
    8. Zou, Hongyang & Du, Huibin & Ren, Jingzheng & Sovacool, Benjamin K. & Zhang, Yongjie & Mao, Guozhu, 2017. "Market dynamics, innovation, and transition in China's solar photovoltaic (PV) industry: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 69(C), pages 197-206.
    9. Liu, Da & Liu, Yumeng & Sun, Kun, 2021. "Policy impact of cancellation of wind and photovoltaic subsidy on power generation companies in China," Renewable Energy, Elsevier, vol. 177(C), pages 134-147.
    10. Ze-Jiong Zhou & Yao Wang & Miao-Miao Lu & Jia-Ming Zhu, 2020. "Government Intervention, Financial Support, and Comprehensive Efficiency of Enterprise Independent Innovation: Empirical Analysis Based on the Data of Chinese Strategic Emerging Industries," Mathematical Problems in Engineering, Hindawi, vol. 2020, pages 1-10, November.
    11. Yazdanifard, Farideh & Ameri, Mehran, 2018. "Exergetic advancement of photovoltaic/thermal systems (PV/T): A review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 97(C), pages 529-553.
    12. Yang, Yunpeng & Yang, Weixin & Chen, Hongmin & Li, Yin, 2020. "China’s energy whistleblowing and energy supervision policy: An evolutionary game perspective," Energy, Elsevier, vol. 213(C).
    13. Tu, Qiang & Mo, Jianlei & Liu, Zhuoran & Gong, Chunxu & Fan, Ying, 2021. "Using green finance to counteract the adverse effects of COVID-19 pandemic on renewable energy investment-The case of offshore wind power in China," Energy Policy, Elsevier, vol. 158(C).
    14. Karakaya, Emrah & Sriwannawit, Pranpreya, 2015. "Barriers to the adoption of photovoltaic systems: The state of the art," Renewable and Sustainable Energy Reviews, Elsevier, vol. 49(C), pages 60-66.
    15. Shan, Haiyan & Yang, Junliang, 2019. "Sustainability of photovoltaic poverty alleviation in China: An evolutionary game between stakeholders," Energy, Elsevier, vol. 181(C), pages 264-280.
    16. Che, Xiao-Jing & Zhou, P. & Chai, Kah-Hin, 2022. "Regional policy effect on photovoltaic (PV) technology innovation: Findings from 260 cities in China," Energy Policy, Elsevier, vol. 162(C).
    17. Yu, Xianyu & Ge, Shengxian & Zhou, Dequn & Wang, Qunwei & Chang, Ching-Ter & Sang, Xiuzhi, 2022. "Whether feed-in tariff can be effectively replaced or not? An integrated analysis of renewable portfolio standards and green certificate trading," Energy, Elsevier, vol. 245(C).
    18. Adibpour, S. & Raisi, A. & Ghasemi, B. & Sajadi, A.R. & Rosengarten, G., 2021. "Experimental investigation of the performance of a sun tracking photovoltaic panel with Phase Change Material," Renewable Energy, Elsevier, vol. 165(P1), pages 321-333.
    19. Zhang, Minhui & Zhang, Qin & Zhou, Dequn & Wang, Lei, 2021. "Punishment or reward? Strategies of stakeholders in the quality of photovoltaic plants based on evolutionary game analysis in China," Energy, Elsevier, vol. 220(C).
    20. Chen, Jie & Liu, Wei & Jiang, Deyi & Zhang, Junwei & Ren, Song & Li, Lin & Li, Xiaokang & Shi, Xilin, 2017. "Preliminary investigation on the feasibility of a clean CAES system coupled with wind and solar energy in China," Energy, Elsevier, vol. 127(C), pages 462-478.
    21. Xing Wang & Yuhong Wang, 2021. "Research on Contribution Rate of Independent Innovation to Economic Growth: Evidence from Changshou District of Chongqing City in China," Mathematical Problems in Engineering, Hindawi, vol. 2021, pages 1-9, October.
    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. Su, Xiaoning & Liu, Pengfei & Mei, Yingdan & Chen, Jiaru, 2023. "The role of rural cooperatives in the development of rural household photovoltaics: An evolutionary game study," Energy Economics, Elsevier, vol. 126(C).
    2. Liu, Jicheng & Sun, Jiakang & Yuan, Hanying & Su, Yihan & Feng, Shuxian & Lu, Chaoran, 2022. "Behavior analysis of photovoltaic-storage-use value chain game evolution in blockchain environment," Energy, Elsevier, vol. 260(C).
    3. Zhang, Zumeng & Ding, Liping & Wang, Chaofan & Dai, Qiyao & Shi, Yin & Zhao, Yujia & Zhu, Yuxuan, 2022. "Do operation and maintenance contracts help photovoltaic poverty alleviation power stations perform better?," Energy, Elsevier, vol. 259(C).
    4. Yan, Chen & Ji, Yaxing & Chen, Rui, 2023. "Research on the mechanism of selective industrial policies on enterprises' innovation performance ——Evidence from China's photovoltaic industry," Renewable Energy, Elsevier, vol. 215(C).
    5. Liu, Chang & Liu, Linlin & Zhang, Dayong & Fu, Jiasha, 2021. "How does the capital market respond to policy shocks? Evidence from listed solar photovoltaic companies in China," Energy Policy, Elsevier, vol. 151(C).
    6. Yiping Liu & Jian Chen & Lingjun Wang, 2020. "Research on Self-Organizing Evolution Level of China’s Photovoltaic Industry Chain System," Sustainability, MDPI, vol. 12(5), pages 1-22, February.
    7. Lin, Boqiang & Xie, Yongjing, 2023. "The impact of government subsidies on capacity utilization in the Chinese renewable energy industry: Does technological innovation matter?," Applied Energy, Elsevier, vol. 352(C).
    8. Li, Yunwei & Chen, Kui & Ding, Ruixin & Zhang, Jing & Hao, Yu, 2023. "How do photovoltaic poverty alleviation projects relieve household energy poverty? Evidence from China," Energy Economics, Elsevier, vol. 118(C).
    9. Zhang, Wenyan & Wang, Yanan, 2023. "Impacts of subsidy reallocation policy on the innovative performance: Empirical evidence from photovoltaic industry in China," Finance Research Letters, Elsevier, vol. 58(PB).
    10. Yang, Zikun & Zhang, Mingming & Liu, Liyun & Zhou, Dequn, 2022. "Can renewable energy investment reduce carbon dioxide emissions? Evidence from scale and structure," Energy Economics, Elsevier, vol. 112(C).
    11. Luan, Ranran & Lin, Boqiang, 2022. "Positive or negative? Study on the impact of government subsidy on the business performance of China's solar photovoltaic industry," Renewable Energy, Elsevier, vol. 189(C), pages 1145-1153.
    12. Tang, Songlin & Zhou, Wenbing & Li, Xinjin & Chen, Yingchao & Zhang, Qian & Zhang, Xiliang, 2021. "Subsidy strategy for distributed photovoltaics: A combined view of cost change and economic development," Energy Economics, Elsevier, vol. 97(C).
    13. Xu, Li & Zhang, Qin & Wang, Keying & Shi, Xunpeng, 2020. "Subsidies, loans, and companies' performance: evidence from China's photovoltaic industry," Applied Energy, Elsevier, vol. 260(C).
    14. Zeng, Lijun & Wang, Jiafeng & Zhao, Laijun, 2022. "An inter-provincial tradable green certificate futures trading model under renewable portfolio standard policy," Energy, Elsevier, vol. 257(C).
    15. Garlet, Taís Bisognin & Ribeiro, José Luis Duarte & de Souza Savian, Fernando & Mairesse Siluk, Julio Cezar, 2019. "Paths and barriers to the diffusion of distributed generation of photovoltaic energy in southern Brazil," Renewable and Sustainable Energy Reviews, Elsevier, vol. 111(C), pages 157-169.
    16. Ji, Shou-feng & Zhao, Dan & Luo, Rong-juan, 2019. "Evolutionary game analysis on local governments and manufacturers' behavioral strategies: Impact of phasing out subsidies for new energy vehicles," Energy, Elsevier, vol. 189(C).
    17. Wang Lai Wang & Marek Kryszak, 2020. "Technological Progress and Supply Base under Uncertain Market Conditions: The Case Study of the Taiwanese c-Si Solar Industry 2016–2019," Energies, MDPI, vol. 13(21), pages 1-25, November.
    18. Lyu, Yuan & He, Yongxiu & Li, Shanzi & Zhou, Jinghan & Tian, BingYing, 2024. "Channeling approach of prosumer connection costs considering regional differences in China — Evolutionary game among distributed photovoltaic entities," Energy, Elsevier, vol. 289(C).
    19. Zhou, Dequn & Dong, Zhuojia & Sang, Xiuzhi & Wang, Qunwei & Yu, Xianyu, 2023. "Do feed-in tariff reduction and green certificate trading effectively promote regional sustainable development？," Energy, Elsevier, vol. 283(C).
    20. Jamali, Mohammad-Bagher & Rasti-Barzoki, Morteza & Altmann, Jörn, 2023. "An evolutionary game-theoretic approach for investigating the long-term behavior of the industry sector for purchasing renewable and non-renewable energy: A case study of Iran," Energy, Elsevier, vol. 285(C).

    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:energy:v:285:y:2023:i:c:s0360544223027792. 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.journals.elsevier.com/energy .

    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.