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Overall review of renewable energy subsidy policies in China – Contradictions of intentions and effects

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  • Shen, Jianfei
  • Luo, Chen

Abstract

China is vast, abundant and particularly plentiful in energy sources, due to which it has obtained remarkable achievements on economy. However, its energy structure is too simple to support the sustainable development of economy as coal still contributes to the majority of energy consumption in China. As a consequence, Renewable Energy Law was enacted in 2005, and Chinese government announced a series of policies to boom renewable energy industry. Subsidy policy is one of the major forms of these policies. This paper aims to present these subsidy policies and to analyze their effects according to relative data in energy industry 2005–2013, to find out the deficiencies and enlighten possible policy improvements. The original intentions and abstracts of 5 different levels of subsidy related policies are summarized, and the effects in reality are attentively analyzed. It can be concluded that subsidy policies have different short-term effect on different renewable energies, and they all show some negative effect to a certain extent. 6 core problems are summarized in this paper, and remedy strategies are suggested.

Suggested Citation

  • 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.
    • Handle: RePEc:eee:rensus:v:41:y:2015:i:c:p:1478-1488
    DOI: 10.1016/j.rser.2014.09.007
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