IDEAS home Printed from https://ideas.repec.org/a/eee/renene/v193y2022icp778-788.html
   My bibliography  Save this article

How dynamic renewable portfolio standards impact the diffusion of renewable energy in China? A networked evolutionary game analysis

Author

Listed:
  • Fang, Yujuan
  • Wei, Wei
  • Mei, Shengwei

Abstract

Renewable portfolio standard is an effective administrative tool to guide the behavior of electricity producers and impact the renewable energy diffusion. However, currently the renewable energy quota is generally set to be static and the efficiency is limited. In this paper, we proposed a dynamic renewable portfolio standard policy and we aimed to analyze how it will impact the renewable energy diffusion in China. The connections between electricity producers were simulated under both the perfectly competitive market and monopoly market. And a networked evolutionary game approach is applied considering dynamic linking between the electricity producers. The results show that dynamic quota policy is effective in promoting the proportion of wind power generation from 20% to 59.17% and promoting the proportion of solar power generation from 20% to 79.25%. With the sensitivity analysis, we found that renewable energy quota and the on-grid price are the most influential parameters. The proportion will reach 76.47% if quota is 0.7 and 68.1% if on-grid price is 630 Yuan/MWh. And the influence of tradable green certificate prices and generation cost is limited in promoting renewable energy diffusion. This paper offers the Chinese government a potential implementation for the perfection of national renewable energy diffusion.

Suggested Citation

  • Fang, Yujuan & Wei, Wei & Mei, Shengwei, 2022. "How dynamic renewable portfolio standards impact the diffusion of renewable energy in China? A networked evolutionary game analysis," Renewable Energy, Elsevier, vol. 193(C), pages 778-788.
  • Handle: RePEc:eee:renene:v:193:y:2022:i:c:p:778-788
    DOI: 10.1016/j.renene.2022.04.131
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0960148122005997
    Download Restriction: Full text for ScienceDirect subscribers only

    File URL: https://libkey.io/10.1016/j.renene.2022.04.131?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. Yu, Shiwei & Zhou, Shuangshuang & Zheng, Shuhong & Li, Zhenxi & Liu, Lancui, 2019. "Developing an optimal renewable electricity generation mix for China using a fuzzy multi-objective approach," Renewable Energy, Elsevier, vol. 139(C), pages 1086-1098.
    2. Zhao, Ning & You, Fengqi, 2020. "Can renewable generation, energy storage and energy efficient technologies enable carbon neutral energy transition?," Applied Energy, Elsevier, vol. 279(C).
    3. Arias-Gaviria, Jessica & Carvajal-Quintero, Sandra Ximena & Arango-Aramburo, Santiago, 2019. "Understanding dynamics and policy for renewable energy diffusion in Colombia," Renewable Energy, Elsevier, vol. 139(C), pages 1111-1119.
    4. Aming Li & Lei Zhou & Qi Su & Sean P. Cornelius & Yang-Yu Liu & Long Wang & Simon A. Levin, 2020. "Evolution of cooperation on temporal networks," Nature Communications, Nature, vol. 11(1), pages 1-9, December.
    5. Xu, Jie & Lv, Tao & Hou, Xiaoran & Deng, Xu & Liu, Feng, 2021. "Provincial allocation of renewable portfolio standard in China based on efficiency and fairness principles," Renewable Energy, Elsevier, vol. 179(C), pages 1233-1245.
    6. Zheng, Shuhong & Yang, Juan & Yu, Shiwei, 2021. "How renewable energy technological innovation promotes renewable power generation: Evidence from China's provincial panel data," Renewable Energy, Elsevier, vol. 177(C), pages 1394-1407.
    7. Sanya Carley & Lincoln L. Davies & David B. Spence & Nikolaos Zirogiannis, 2018. "Empirical evaluation of the stringency and design of renewable portfolio standards," Nature Energy, Nature, vol. 3(9), pages 754-763, September.
    8. Fang, Debin & Zhao, Chaoyang & Kleit, Andrew N., 2019. "The impact of the under enforcement of RPS in China: An evolutionary approach," Energy Policy, Elsevier, vol. 135(C).
    9. Zhou, Shan & Solomon, Barry D., 2020. "Do renewable portfolio standards in the United States stunt renewable electricity development beyond mandatory targets?," Energy Policy, Elsevier, vol. 140(C).
    10. Yu, Biying & Zhao, Zihao & Zhao, Guangpu & An, Runying & Sun, Feihu & Li, Ru & Peng, Xiaohan, 2021. "Provincial renewable energy dispatch optimization in line with Renewable Portfolio Standard policy in China," Renewable Energy, Elsevier, vol. 174(C), pages 236-252.
    11. Horbach, Jens & Rammer, Christian, 2018. "Energy transition in Germany and regional spill-overs: The diffusion of renewable energy in firms," Energy Policy, Elsevier, vol. 121(C), pages 404-414.
    12. Shayegh, Soheil & Sanchez, Daniel L., 2021. "Impact of market design on cost-effectiveness of renewable portfolio standards," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).
    13. Yuzhuo Zhang & Xingang Zhao & Yi Zuo & Lingzhi Ren & Ling Wang, 2017. "The Development of the Renewable Energy Power Industry under Feed-In Tariff and Renewable Portfolio Standard: A Case Study of China’s Photovoltaic Power Industry," Sustainability, MDPI, vol. 9(4), pages 1-23, March.
    14. Jimenez, Maritza & Franco, Carlos J. & Dyner, Isaac, 2016. "Diffusion of renewable energy technologies: The need for policy in Colombia," Energy, Elsevier, vol. 111(C), pages 818-829.
    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. Wu, Jiaqian & Chen, Yu & Yu, Lean & Li, Guohao & Li, Jingjing, 2023. "Has the evolution of renewable energy policies facilitated the construction of a new power system for China? A system dynamics analysis," Energy Policy, Elsevier, vol. 183(C).
    2. 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).
    3. Ning, Jiajun & Xiong, Lixin, 2024. "Analysis of the dynamic evolution process of the digital transformation of renewable energy enterprises based on the cooperative and evolutionary game model," Energy, Elsevier, vol. 288(C).
    4. Guo, Xiaopeng & Zhang, Xinyue & Zhang, Xingping, 2024. "Incentive-oriented power‑carbon emissions trading-tradable green certificate integrated market mechanisms using multi-agent deep reinforcement learning," Applied Energy, Elsevier, vol. 357(C).
    5. Zhao, Jing & Zhang, Qin & Zhou, Dequn, 2023. "Can marketed on-grid price drive the realization of energy transition in China’s power industry under the background of carbon neutrality?," Energy, Elsevier, vol. 276(C).
    6. Jing Yu & Jicheng Liu & Jiakang Sun & Mengyu Shi, 2023. "Evolutionary Game of Digital-Driven Photovoltaic–Storage–Use Value Chain Collaboration: A Value Intelligence Creation Perspective," Sustainability, MDPI, vol. 15(4), pages 1-30, February.
    7. Wang, Xinru & Long, Ruyin & Chen, Hong & Wang, Yujie & Shi, Yanmin & Yang, Shuhan & Wu, Meifen, 2024. "How to promote the trading in China's green electricity market? Based on environmental perceptions, renewable portfolio standard and subsidies," Renewable Energy, Elsevier, vol. 222(C).
    8. Li, Xiaozhu & Chen, Laijun & Sun, Fan & Hao, Yibo & Du, Xili & Mei, Shenwei, 2023. "Share or not share, the analysis of energy storage interaction of multiple renewable energy stations based on the evolution game," Renewable Energy, Elsevier, vol. 208(C), pages 679-692.
    9. Wang, Delu & Li, Chunxiao & Mao, Jinqi & Yang, Qing, 2023. "What affects the implementation of the renewable portfolio standard? An analysis of the four-party evolutionary game," Renewable Energy, Elsevier, vol. 204(C), pages 250-261.

    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, Yu & Chi, Yuanying & Zhou, Wenbing & Li, Jialin & Wang, Zhengzao & Yuan, Yongke, 2023. "The interactions between renewable portfolio standards and carbon emission trading in China: An evolutionary game theory perspective," Energy, Elsevier, vol. 271(C).
    2. Chunning Na & Can Jin & Huan Pan & Lixia Ding, 2022. "Green Power Trade Behavior in China’s Renewable Portfolio Standard: An Evolutionary Game-Based System Dynamics Approach," Sustainability, MDPI, vol. 14(9), pages 1-12, April.
    3. Ying, Zhou & Xin-gang, Zhao & Lei, Xu, 2022. "Supply side incentive under the Renewable Portfolio Standards: A perspective of China," Renewable Energy, Elsevier, vol. 193(C), pages 505-518.
    4. Dong, Zhuojia & Yu, Xianyu & Chang, Ching-Ter & Zhou, Dequn & Sang, Xiuzhi, 2022. "How does feed-in tariff and renewable portfolio standard evolve synergistically? An integrated approach of tripartite evolutionary game and system dynamics," Renewable Energy, Elsevier, vol. 186(C), pages 864-877.
    5. 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.
    6. Yuanyuan He & Luxin Wan & Manli Zhang & Huijuan Zhao, 2022. "Regional Renewable Energy Installation Optimization Strategies with Renewable Portfolio Standards in China," Sustainability, MDPI, vol. 14(17), pages 1-18, August.
    7. Parrish Bergquist & Christopher Warshaw, 2023. "How climate policy commitments influence energy systems and the economies of US states," Nature Communications, Nature, vol. 14(1), pages 1-9, December.
    8. Wang, Delu & Li, Chunxiao & Mao, Jinqi & Yang, Qing, 2023. "What affects the implementation of the renewable portfolio standard? An analysis of the four-party evolutionary game," Renewable Energy, Elsevier, vol. 204(C), pages 250-261.
    9. Li, Tianyu & Gao, Ciwei & Chen, Tao & Jiang, Yu & Feng, Yingchun, 2022. "Medium and long-term electricity market trading strategy considering renewable portfolio standard in the transitional period of electricity market reform in Jiangsu, China," Energy Economics, Elsevier, vol. 107(C).
    10. Teng, Minmin & Lv, Kunfeng & Han, Chuanfeng & Liu, Pihui, 2023. "Trading behavior strategy of power plants and the grid under renewable portfolio standards in China: A tripartite evolutionary game analysis," Energy, Elsevier, vol. 284(C).
    11. López, Andrea Ruíz & Krumm, Alexandra & Schattenhofer, Lukas & Burandt, Thorsten & Montoya, Felipe Corral & Oberländer, Nora & Oei, Pao-Yu, 2020. "Solar PV generation in Colombia - A qualitative and quantitative approach to analyze the potential of solar energy market," Renewable Energy, Elsevier, vol. 148(C), pages 1266-1279.
    12. Sun, Jie & Zhou, P. & Wen, Wen, 2022. "Assessing the regional adaptive capacity to renewable portfolio standard policy in China," Energy Policy, Elsevier, vol. 162(C).
    13. Shangjia Wang & Wenhui Zhao & Shuwen Fan & Lei Xue & Zijuan Huang & Zhigang Liu, 2022. "Is the Renewable Portfolio Standard in China Effective? Research on RPS Allocation Efficiency in Chinese Provinces Based on the Zero-Sum DEA Model," Energies, MDPI, vol. 15(11), pages 1-18, May.
    14. Zhang, Mingming & Song, Wenwen & Liu, Liyun & Zhou, Dequn, 2024. "Optimal investment portfolio strategy for carbon neutrality of power enterprises," Renewable and Sustainable Energy Reviews, Elsevier, vol. 189(PA).
    15. Montoya-Duque, Laura & Arango-Aramburo, Santiago & Arias-Gaviria, Jessica, 2022. "Simulating the effect of the Pay-as-you-go scheme for solar energy diffusion in Colombian off-grid regions," Energy, Elsevier, vol. 244(PB).
    16. Tadeusz Skoczkowski & Sławomir Bielecki & Joanna Wojtyńska, 2019. "Long-Term Projection of Renewable Energy Technology Diffusion," Energies, MDPI, vol. 12(22), pages 1-24, November.
    17. Henao, Felipe & Dyner, Isaac, 2020. "Renewables in the optimal expansion of colombian power considering the Hidroituango crisis," Renewable Energy, Elsevier, vol. 158(C), pages 612-627.
    18. Xu, Jiuping & Yang, Guocan & Wang, Fengjuan & Shu, Kejing, 2022. "A provincial renewable portfolio standards-based distribution strategy for both power plant and user: A case study from Guangdong, China," Energy Policy, Elsevier, vol. 165(C).
    19. John J. García Rendón & Alex F. Pérez-Libreros, 2019. "El precio spot de la electricidad y la inclusión de energía renovable no convencional: evidencia para Colombia," Documentos de Trabajo de Valor Público 17393, Universidad EAFIT.
    20. Wu, Jiaqian & Chen, Yu & Yu, Lean & Li, Guohao & Li, Jingjing, 2023. "Has the evolution of renewable energy policies facilitated the construction of a new power system for China? A system dynamics analysis," Energy Policy, Elsevier, vol. 183(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:renene:v:193:y:2022:i:c:p:778-788. 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.