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Impact Factors and Policy Effectiveness of Renewable Energy Generation in China

Author

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  • Songyuan Liu

    (State Grid Economic and Technological Research Institute, Co., Ltd., Beijing 102209, China)

  • Shuaiqi Hu

    (State Grid Economic and Technological Research Institute, Co., Ltd., Beijing 102209, China)

  • Mei Wang

    (College of Economics and Management, Nanjing University of Aeronautics and Astronautics, Nanjing 211106, China)

  • Yue Song

    (State Grid Commercial Big Data Co., Ltd., Xiongan New Area, Xiongan 071700, China)

  • Yichuan Jin

    (State Grid Corporation of China Co., Ltd., Beijing 100031, China)

  • Lingfeng Tan

    (State Grid Economic and Technological Research Institute, Co., Ltd., Beijing 102209, China)

Abstract

As China accelerates toward carbon neutrality, decrypting the causal drivers of renewable energy expansion is paramount for effective policy design. We develop a hybrid analytical framework bridging data-driven K2 structural learning with expert-informed Bayesian Networks to map the intricate interdependencies between policy instruments, resource endowments, and socio-economic variables. This causal mapping reveals a fundamental paradigm shift from resource-bound growth to institutional-steered expansion, particularly in the solar sector where the Renewable Portfolio Standard (RPS) has superseded natural radiation as the primary determinant for capacity scaling. Forward sensitivity and backward diagnostic analyses demonstrate that achieving high-growth milestones requires a synergistic convergence of technological cost reductions and mandatory consumption quotas; conversely, the absence of RPS leads to a 64% degradation in systemic causal connectivity. These findings underscore the necessity of transitioning from price-side stimuli to structural consumption-side mandates to ensure a resilient energy transition. Ultimately, this framework and the identified causal pathways provide a strategic blueprint for other emerging economies navigating the complex transition from subsidy-dependent to market-resilient renewable energy landscapes under stringent climate constraints.

Suggested Citation

  • Songyuan Liu & Shuaiqi Hu & Mei Wang & Yue Song & Yichuan Jin & Lingfeng Tan, 2026. "Impact Factors and Policy Effectiveness of Renewable Energy Generation in China," Sustainability, MDPI, vol. 18(7), pages 1-26, April.
  • Handle: RePEc:gam:jsusta:v:18:y:2026:i:7:p:3519-:d:1913476
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