IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v177y2021icp134-147.html
   My bibliography  Save this article

Policy impact of cancellation of wind and photovoltaic subsidy on power generation companies in China

Author

Listed:
  • Liu, Da
  • Liu, Yumeng
  • Sun, Kun

Abstract

Renewable energy is environmentally friendly and with subsidies stimulating, global wind power and photovoltaic (PV) power generation industries are developing rapidly. As the biggest renewable energy generation country, China's wind power, and PV power generation industries have high growth and are suffering from the subsidy gap. Therefore, China's government gradually reduced and canceled the subsidies. The cancellation of subsidies brought challenges and opportunities to power generation companies.

Suggested Citation

  • 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.
  • Handle: RePEc:eee:renene:v:177:y:2021:i:c:p:134-147
    DOI: 10.1016/j.renene.2021.05.107
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148121007904
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.renene.2021.05.107?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. Kalkuhl, Matthias & Edenhofer, Ottmar & Lessmann, Kai, 2013. "Renewable energy subsidies: Second-best policy or fatal aberration for mitigation?," Resource and Energy Economics, Elsevier, vol. 35(3), pages 217-234.
    2. Oskar Lecuyer & Philippe Quirion, 2019. "Interaction between CO2 emissions trading and renewable energy subsidies under uncertainty: feed-in tariffs as a safety net against over-allocation," Climate Policy, Taylor & Francis Journals, vol. 19(8), pages 1002-1018, September.
    3. Sung, Bongsuk, 2019. "Do government subsidies promote firm-level innovation? Evidence from the Korean renewable energy technology industry," Energy Policy, Elsevier, vol. 132(C), pages 1333-1344.
    4. Yu, Feifei & Guo, Yue & Le-Nguyen, Khuong & Barnes, Stuart J. & Zhang, Weiting, 2016. "The impact of government subsidies and enterprises’ R&D investment: A panel data study from renewable energy in China," Energy Policy, Elsevier, vol. 89(C), pages 106-113.
    5. Tu, Qiang & Betz, Regina & Mo, Jianlei & Fan, Ying & Liu, Yu, 2019. "Achieving grid parity of wind power in China – Present levelized cost of electricity and future evolution," Applied Energy, Elsevier, vol. 250(C), pages 1053-1064.
    6. Bigerna, Simona & Wen, Xingang & Hagspiel, Verena & Kort, Peter M., 2019. "Green electricity investments: Environmental target and the optimal subsidy," European Journal of Operational Research, Elsevier, vol. 279(2), pages 635-644.
    7. Frey, Elaine F. & Mojtahedi, Saba, 2018. "The impact of solar subsidies on California's non-residential sector," Energy Policy, Elsevier, vol. 122(C), pages 27-35.
    8. Xu, Xiaomin & Niu, Dongxiao & Xiao, Bowen & Guo, Xiaodan & Zhang, Lihui & Wang, Keke, 2020. "Policy analysis for grid parity of wind power generation in China," Energy Policy, Elsevier, vol. 138(C).
    9. Abrell, Jan & Kosch, Mirjam & Rausch, Sebastian, 2019. "Carbon abatement with renewables: Evaluating wind and solar subsidies in Germany and Spain," Journal of Public Economics, Elsevier, vol. 169(C), pages 172-202.
    10. Nicolini, Marcella & Tavoni, Massimo, 2017. "Are renewable energy subsidies effective? Evidence from Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 412-423.
    11. Chen, Hao & Gao, Xin-Ya & Liu, Jian-Yu & Zhang, Qian & Yu, Shiwei & Kang, Jia-Ning & Yan, Rui & Wei, Yi-Ming, 2020. "The grid parity analysis of onshore wind power in China: A system cost perspective," Renewable Energy, Elsevier, vol. 148(C), pages 22-30.
    12. Zhang, Huiming & Zheng, Yu & Ozturk, U. Aytun & Li, Shanjun, 2016. "The impact of subsidies on overcapacity: A comparison of wind and solar energy companies in China," Energy, Elsevier, vol. 94(C), pages 821-827.
    13. Niesten, Eva & Jolink, Albert & Chappin, Maryse, 2018. "Investments in the Dutch onshore wind energy industry: A review of investor profiles and the impact of renewable energy subsidies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P2), pages 2519-2525.
    14. Liu, Dunnan & Liu, Mingguang & Xu, Erfeng & Pang, Bo & Guo, Xiaodan & Xiao, Bowen & Niu, Dongxiao, 2018. "Comprehensive effectiveness assessment of renewable energy generation policy: A partial equilibrium analysis in China," Energy Policy, Elsevier, vol. 115(C), pages 330-341.
    15. Herath, N. & Tyner, W.E., 2019. "Intended and unintended consequences of US renewable energy policies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 115(C).
    16. Shen, Jianfei & Luo, Chen, 2015. "Overall review of renewable energy subsidy policies in China – Contradictions of intentions and effects," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1478-1488.
    17. Xingang, Zhao & Xiaomeng, Liu & Pingkuo, Liu & Tiantian, Feng, 2011. "The mechanism and policy on the electricity price of renewable energy in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 15(9), pages 4302-4309.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Lin, Boqiang & Xie, Yongjing, 2023. "Positive or negative? R&D subsidies and green technology innovation: Evidence from China's renewable energy industry," Renewable Energy, Elsevier, vol. 213(C), pages 148-156.
    2. Bangjun Wang & Qiaoqiao Xing, 2022. "Evaluation of the Wind Power Industry Policy in China (2010–2021): A Quantitative Analysis Based on the PMC Index Model," Energies, MDPI, vol. 15(21), pages 1-14, November.
    3. Zhang, Yagang & Zhao, Yunpeng & Shen, Xiaoyu & Zhang, Jinghui, 2022. "A comprehensive wind speed prediction system based on Monte Carlo and artificial intelligence algorithms," Applied Energy, Elsevier, vol. 305(C).
    4. Li, Aitong & Sun, Ying & Song, Xiaobin, 2023. "Gradual improvement and reactive intervention: China's policy pathway for developing the wind power industry," Renewable Energy, Elsevier, vol. 216(C).
    5. Wang, Yadong & Wang, Delu & Shi, Xunpeng, 2023. "Sustainable development pathways of China's wind power industry under uncertainties: Perspective from economic benefits and technical potential," Energy Policy, Elsevier, vol. 182(C).
    6. Wang, Bingqing & Li, Yongping & Huang, Guohe & Gao, Pangpang & Liu, Jing & Wen, Yizhuo, 2023. "Development of an integrated BLSVM-MFA method for analyzing renewable power-generation potential under climate change: A case study of Xiamen," Applied Energy, Elsevier, vol. 337(C).
    7. Bin Xu, 2022. "How to Efficiently Reduce the Carbon Intensity of the Heavy Industry in China? Using Quantile Regression Approach," IJERPH, MDPI, vol. 19(19), pages 1-24, October.
    8. Bangjun, Wang & Feng, Zhaolei & Feng, Ji & Yu, Pan & Cui, Linyu, 2022. "Decision making on investments in photovoltaic power generation projects based on renewable portfolio standard: Perspective of real option," Renewable Energy, Elsevier, vol. 189(C), pages 1033-1045.
    9. Yang, Changhui & Jiang, Qi & Cui, Yangyu & He, Lijun, 2023. "Photovoltaic project investment based on the real options method: An analysis of the East China power grid region," Utilities Policy, Elsevier, vol. 80(C).
    10. Peng Hao & Jun-Peng Guo & Eoghan O’Neill & Yong-Heng Shi, 2023. "When Will First-Price Work Well? The Impact of Anti-Corruption Rules on Photovoltaic Power Generation Procurement Auctions," Sustainability, MDPI, vol. 15(4), pages 1-24, February.
    11. Hongliang Tian & Liang Zhao & Sen Guo, 2023. "Comprehensive Benefit Evaluation of Power Grid Investment Considering Renewable Energy Development from the Perspective of Sustainability," Sustainability, MDPI, vol. 15(10), pages 1-17, May.
    12. 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.

    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. Zhishuang Zhu & Hua Liao, 2019. "Do subsidies improve the financial performance of renewable energy companies? Evidence from China," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 95(1), pages 241-256, January.
    2. Chang, Kai & Xue, Chenqi & Zhang, Huijia & Zeng, Yonghong, 2022. "The effects of green fiscal policies and R&D investment on a firm's market value: New evidence from the renewable energy industry in China," Energy, Elsevier, vol. 251(C).
    3. Zhang, M.M. & Zhou, D.Q. & Zhou, P. & Chen, H.T., 2017. "Optimal design of subsidy to stimulate renewable energy investments: The case of China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 71(C), pages 873-883.
    4. Chen, Hao & Chen, Jiachuan & Han, Guoyi & Cui, Qi, 2022. "Winding down the wind power curtailment in China: What made the difference?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    5. Zheng-Xia He & Shi-Chun Xu & Qin-Bin Li & Bin Zhao, 2018. "Factors That Influence Renewable Energy Technological Innovation in China: A Dynamic Panel Approach," Sustainability, MDPI, vol. 10(1), pages 1-30, January.
    6. 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.
    7. Wu, Wei & Hu, Yingying & Wu, Qinwen, 2023. "Subsidies and tax incentives - Does it make a difference on TFP? Evidences from China's photovoltaic and wind listed companies," Renewable Energy, Elsevier, vol. 208(C), pages 645-656.
    8. Piotr Olczak & Dominik Kryzia & Dominika Matuszewska & Marta Kuta, 2021. "“My Electricity” Program Effectiveness Supporting the Development of PV Installation in Poland," Energies, MDPI, vol. 14(1), pages 1-16, January.
    9. Wang, Rong & Hasanefendic, Sandra & Von Hauff, Elizabeth & Bossink, Bart, 2022. "The cost of photovoltaics: Re-evaluating grid parity for PV systems in China," Renewable Energy, Elsevier, vol. 194(C), pages 469-481.
    10. Qi, Xiaoyan & Guo, Yanshan & Guo, Pibin & Yao, Xilong & Liu, Xiuli, 2022. "Do subsidies and R&D investment boost energy transition performance? Evidence from Chinese renewable energy firms," Energy Policy, Elsevier, vol. 164(C).
    11. 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).
    12. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    13. Chang, Kai & Zeng, Yonghong & Wang, Weihong & Wu, Xin, 2019. "The effects of credit policy and financial constraints on tangible and research & development investment: Firm-level evidence from China's renewable energy industry," Energy Policy, Elsevier, vol. 130(C), pages 438-447.
    14. Nagy, Roel L.G. & Hagspiel, Verena & Kort, Peter M., 2021. "Green capacity investment under subsidy withdrawal risk," Energy Economics, Elsevier, vol. 98(C).
    15. Wang, Hongwei & Zheng, Shilin & Zhang, Yanhua & Zhang, Kai, 2016. "Analysis of the policy effects of downstream Feed-In Tariff on China’s solar photovoltaic industry," Energy Policy, Elsevier, vol. 95(C), pages 479-488.
    16. Ma, Teng & Takeuchi, Kenji, 2017. "Technology choice for reducing NOx emissions: An empirical study of Chinese power plants," Energy Policy, Elsevier, vol. 102(C), pages 362-376.
    17. 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).
    18. Jabir Ali Ouassou & Julian Straus & Marte Fodstad & Gunhild Reigstad & Ove Wolfgang, 2021. "Applying endogenous learning models in energy system optimization," Papers 2106.06373, arXiv.org.
    19. Zhou, Wei & Chen, Jin, 2021. "Is R&D helpful for China’s energy technology and engineering industry to respond to external uncertainties?," Energy, Elsevier, vol. 226(C).
    20. Chang, Kai & Wan, Qiong & Lou, Qichun & Chen, Yili & Wang, Weihong, 2020. "Green fiscal policy and firms’ investment efficiency: New insights into firm-level panel data from the renewable energy industry in China," Renewable Energy, Elsevier, vol. 151(C), pages 589-597.

    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:renene:v:177:y:2021:i:c:p:134-147. 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/renewable-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.