IDEAS home Printed from https://ideas.repec.org/a/gam/jsusta/v14y2022i9p5155-d801411.html
   My bibliography  Save this article

Green Power Trade Behavior in China’s Renewable Portfolio Standard: An Evolutionary Game-Based System Dynamics Approach

Author

Listed:
  • Chunning Na

    (School of Physics & Electronic-Electrical Engineering, Ningxia University, Yinchuan 750021, China)

  • Can Jin

    (School of Physics & Electronic-Electrical Engineering, Ningxia University, Yinchuan 750021, China)

  • Huan Pan

    (School of Physics & Electronic-Electrical Engineering, Ningxia University, Yinchuan 750021, China)

  • Lixia Ding

    (Eco-Tech Research Institute, State Grid Ningxia Electric Power Co., Ltd., Yinchuan 750004, China)

Abstract

To promote the consumption of renewable energy (RE), in 2019, China introduced the Renewable Portfolio Standard (RPS) and adopted the weight of consumption responsibility to replace the quota index. This paper investigates the behavioral decisions of green power plants and power sales companies using evolutionary game theory. The results show that RPS becomes effective based on two rules: (1) the unit fine is higher than the transaction cost for power sales companies; and (2) the transaction prices of RE and Trade of Green Certificate (TGC) are greater than the unit transaction cost for green power plants. Taking Ningxia Hui Autonomous Region as an example, the scenario analysis method and a simple system dynamics model are employed to investigate the impact of fines on the green power trade behavior. With different fines, power sales companies are more sensitive than green power plants. These results provide some policy recommendations to promote the consumption of RE.

Suggested Citation

  • 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.
    • Handle: RePEc:gam:jsusta:v:14:y:2022:i:9:p:5155-:d:801411
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/2071-1050/14/9/5155/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/2071-1050/14/9/5155/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. García-Álvarez, María Teresa & Cabeza-García, Laura & Soares, Isabel, 2017. "Analysis of the promotion of onshore wind energy in the EU: Feed-in tariff or renewable portfolio standard?," Renewable Energy, Elsevier, vol. 111(C), pages 256-264.
    2. Sanya Carley & Lincoln L. Davies & David B. Spence & Nikolaos Zirogiannis, 2019. "Author Correction: Empirical evaluation of the stringency and design of renewable portfolio standards," Nature Energy, Nature, vol. 4(2), pages 167-168, February.
    3. Kwon, Tae-hyeong, 2020. "Policy mix of renewable portfolio standards, feed-in tariffs, and auctions in South Korea: Are three better than one?," Utilities Policy, Elsevier, vol. 64(C).
    4. Daniel Friedman, 1998. "On economic applications of evolutionary game theory," Journal of Evolutionary Economics, Springer, vol. 8(1), pages 15-43.
    5. Fugui Dong & Lei Shi & Xiaohui Ding & Yuan Li & Yongpeng Shi, 2019. "Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard," Energies, MDPI, vol. 12(11), pages 1-23, June.
    6. Li, Wei & Lu, Can & Zhang, Yan-Wu, 2019. "Prospective exploration of future renewable portfolio standard schemes in China via a multi-sector CGE model," Energy Policy, Elsevier, vol. 128(C), pages 45-56.
    7. 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.
    8. Jiahai Yuan & Chunning Na & Yan Xu & Changhong Zhao, 2016. "Feed-In Tariff for Onshore Wind Power in China," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 52(6), pages 1427-1437, June.
    9. 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.
    10. 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.
    11. Wang, Bing & Wei, Yi-Ming & Yuan, Xiao-Chen, 2018. "Possible design with equity and responsibility in China’s renewable portfolio standards," Applied Energy, Elsevier, vol. 232(C), pages 685-694.
    12. 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).
    13. Zhu, Chaoping & Fan, Ruguo & Lin, Jinchai, 2020. "The impact of renewable portfolio standard on retail electricity market: A system dynamics model of tripartite evolutionary game," Energy Policy, Elsevier, vol. 136(C).
    14. Upton, Gregory B. & Snyder, Brian F., 2017. "Funding renewable energy: An analysis of renewable portfolio standards," Energy Economics, Elsevier, vol. 66(C), pages 205-216.
    15. Yang, Peiwen & Dong, Jun & Lin, Jin & Liu, Yao & Fang, Debin, 2021. "Analysis of offering behavior of generation-side integrated energy aggregator in electricity market:A Bayesian evolutionary approach," Energy, Elsevier, vol. 228(C).
    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. 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).
    2. Na, Chunning & Wang, Jing & Feng, Bin & Pan, Huan, 2024. "Impact analysis of the four-party evolutionary game in renewable portfolio standard under dynamic parameters," Renewable Energy, Elsevier, vol. 237(PB).
    3. Yue, Tingyi & Wang, Honglei & Li, Chengjiang & Hu, Yu-jie, 2024. "Optimization strategies for green power and certificate trading in China considering seasonality: An evolutionary game-based system dynamics," Energy, Elsevier, vol. 311(C).

    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. 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.
    2. 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.
    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. Chai, Song & Liu, Qiyun & Yang, Jin, 2023. "Renewable power generation policies in China: Policy instrument choices and influencing factors from the central and local government perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 174(C).
    5. Song, Xiao-hua & Han, Jing-jing & Zhang, Lu & Zhao, Cai-ping & Wang, Peng & Liu, Xiao-yan & Li, Qiao-chu, 2021. "Impacts of renewable portfolio standards on multi-market coupling trading of renewable energy in China: A scenario-based system dynamics model," Energy Policy, Elsevier, vol. 159(C).
    6. Na, Chunning & Wang, Jing & Feng, Bin & Pan, Huan, 2024. "Impact analysis of the four-party evolutionary game in renewable portfolio standard under dynamic parameters," Renewable Energy, Elsevier, vol. 237(PB).
    7. 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.
    8. 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).
    9. 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.
    10. 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).
    11. 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.
    12. Fugui Dong & Lei Shi & Xiaohui Ding & Yuan Li & Yongpeng Shi, 2019. "Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard," Energies, MDPI, vol. 12(11), pages 1-23, June.
    13. Wang, Ge & Zhang, Qi & Li, Yan & Mclellan, Benjamin C. & Pan, Xunzhang, 2019. "Corrective regulations on renewable energy certificates trading: Pursuing an equity-efficiency trade-off," Energy Economics, Elsevier, vol. 80(C), pages 970-982.
    14. Chunyi Ji & Xinyue Wang & Wei Zhao & Xuan Wang & Wuyong Qian, 2025. "The Impact of Environmental Policies on Renewable Energy Storage Decisions in the Power Supply Chain," Energies, MDPI, vol. 18(9), pages 1-24, April.
    15. Teng, Minmin & Lv, Kunfeng & Han, Chuanfeng & Liu, Pihui, 2025. "A tripartite stochastic evolutionary game for trading strategies under renewable portfolio standards in China’s electric power industry," Renewable Energy, Elsevier, vol. 240(C).
    16. Shiwei Yu & Chengzhu Gong & Weidong Jia & Li Ma, 2024. "A tripartite evolutionary game model for tradable green certificate transaction strategies in China," Operational Research, Springer, vol. 24(4), pages 1-29, December.
    17. Kim, Jung Eun & Tang, Tian, 2020. "Preventing early lock-in with technology-specific policy designs: The Renewable Portfolio Standards and diversity in renewable energy technologies," Renewable and Sustainable Energy Reviews, Elsevier, vol. 123(C).
    18. Wei, Shuni & Yuan, Peng & Yu, Renjie, 2025. "Can renewable portfolio standard promote renewable energy capacity utilization? Empirical evidence from China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 210(C).
    19. 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).
    20. Wang, Xianjia & Tianrun, He & Zhang, Ling, 2025. "Wind energy use under electricity supply guarantee rates: The impact of two incentive policies," Energy, Elsevier, vol. 322(C).

    More about this item

    Keywords

    ;
    ;
    ;
    ;
    ;

    Statistics

    Access and download statistics

    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:gam:jsusta:v:14:y:2022:i:9:p:5155-:d:801411. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.