IDEAS home Printed from https://ideas.repec.org/a/sae/enejou/v37y2016i1_supplp195-210.html
   My bibliography  Save this article

Market and Non-market Policies for Renewable Energy Diffusion: A Unifying Framework and Empirical Evidence from China’s Wind Power Sector

Author

Listed:
  • Yang Liu
  • Taoyuan Wei

Abstract

We provide a comprehensive framework of analyzing the diffusion process of renewable technology, incorporating epidemic and pecuniary effects. Relying on a panel dataset consisting of information from 1207 CDM wind projects in thirty provinces over the period 2004-2011, we find strong evidence on the dominant role of the epidemic effect and new evidence on pecuniary effects that generate a diminishing marginal effect of profitability in inducing technology adoption. Our numerical simulation demonstrates that the epidemic effect can play a quantitatively important role in the spread of renewable energy technology and markedly enhance the optimal social welfare. Our findings convey important policy implications for regulators when choosing policy instruments to enhance the diffusion and adoption of clean technology. Price instruments should be complemented by a wide range of non-market instruments to address non-market barriers.

Suggested Citation

  • Yang Liu & Taoyuan Wei, 2016. "Market and Non-market Policies for Renewable Energy Diffusion: A Unifying Framework and Empirical Evidence from China’s Wind Power Sector," The Energy Journal, , vol. 37(1_suppl), pages 195-210, January.
    • Handle: RePEc:sae:enejou:v:37:y:2016:i:1_suppl:p:195-210
    DOI: 10.5547/01956574.37.SI1.lyan
    as

    Download full text from publisher

    File URL: https://journals.sagepub.com/doi/10.5547/01956574.37.SI1.lyan
    Download Restriction: no
    File URL: https://libkey.io/10.5547/01956574.37.SI1.lyan?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
    ---><---

    References listed on IDEAS

    as
    1. Dan Andrews & Chiara Criscuolo & Peter N. Gal, 2015. "Frontier Firms, Technology Diffusion and Public Policy: Micro Evidence from OECD Countries," OECD Productivity Working Papers 2, OECD Publishing.
    Full references (including those not matched with items on IDEAS)

    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. Kariem Soliman, 2021. "Are Industrial Robots a new GPT? A Panel Study of Nine European Countries with Capital and Quality-adjusted Industrial Robots as Drivers of Labour Productivity Growth," EIIW Discussion paper disbei307, Universitätsbibliothek Wuppertal, University Library.
    2. Cette, Gilbert & Corde, Simon & Lecat, Rémy, 2018. "Firm-level productivity dispersion and convergence," Economics Letters, Elsevier, vol. 166(C), pages 76-78.
    3. V. Vandenberghe, 2018. "The Contribution of Educated Workers to Firms’ Efficiency Gains: The Key Role of Proximity to the ‘Local’ Frontier," De Economist, Springer, vol. 166(3), pages 259-283, September.
    4. Javier Papa & Luke Rehill & Brendan O'Connor, 2021. "Patterns of Firm-Level Productivity in Ireland," The Economic and Social Review, Economic and Social Studies, vol. 52(3), pages 241-268.
    5. DUERNECKER Georg & SANCHEZ MARTINEZ Miguel, 2021. "Structural change and productivity growth in the European Union: Past, present and future," JRC Working Papers on Territorial Modelling and Analysis 2021-09, Joint Research Centre.
    6. Alexander Schiersch & Irene Bertschek & Thomas Niebel, 2025. "To diversify or not? The link between global sourcing of ICT goods and firm performance," Economics of Innovation and New Technology, Taylor & Francis Journals, vol. 34(1), pages 94-116, January.
    7. Pardesi, Mantej, 2024. "Productivity convergence and firm’s training strategy," ROA Research Memorandum 003, Maastricht University, Research Centre for Education and the Labour Market (ROA).
    8. Themann, Michael & Koch, Nicolas, 2021. "Catching up and falling behind: Cross-country evidence on the impact of the EU ETS on firm productivity," Ruhr Economic Papers 904, RWI - Leibniz-Institut für Wirtschaftsforschung, Ruhr-University Bochum, TU Dortmund University, University of Duisburg-Essen.
    9. Kose,Ayhan & Ohnsorge,Franziska Lieselotte & Ye,Lei Sandy & Islamaj,Ergys, 2017. "Weakness in investment growth : causes, implications and policy responses," Policy Research Working Paper Series 7990, The World Bank.
    10. Steffen Elstner & Lars P. Feld & Christoph M. Schmidt, 2018. "The German Productivity Paradox - Facts and Explanations," CESifo Working Paper Series 7231, CESifo.
    11. Broszeit Sandra & Laible Marie-Christine & Görg Holger & Fritsch Ursula, 2019. "Management Practices and Productivity in Germany," German Economic Review, De Gruyter, vol. 20(4), pages 657-705, December.
    12. Catherine L. Mann, 2024. "Could Domestic Industrial Policies, Even With Global Fragmentation, Revive Productivity?," International Productivity Monitor, Centre for the Study of Living Standards, vol. 47, pages 3-19, Fall.
    13. Nieto-Carrillo, Ernesto & Carreira, Carlos & Teixeira, Paulino, 2024. "Industrial dynamics in the ICT technological paradigm: The case of Portugal, 1986–2018," Structural Change and Economic Dynamics, Elsevier, vol. 69(C), pages 155-170.
    14. Hoxha, Sergei & Kleinknecht, Alfred, 2020. "When labour market rigidities are useful for innovation. Evidence from German IAB firm-level data," Research Policy, Elsevier, vol. 49(7).
    15. Cette, Gilbert & Fernald, John & Mojon, Benoît, 2016. "The pre-Great Recession slowdown in productivity," European Economic Review, Elsevier, vol. 88(C), pages 3-20.
    16. Davide Castellani & Mariacristina Piva & Torben Schubert & Marco Vivarelli, 2018. "The source of the US /EU Productivity Gap:Less and less effective R&D," LEM Papers Series 2018/16, Laboratory of Economics and Management (LEM), Sant'Anna School of Advanced Studies, Pisa, Italy.
    17. James Fudurich & Lena Suchanek & Lise Pichette, 2021. "Adoption of digital technologies: Insights from a global survey initiative," Discussion Papers 2021-7, Bank of Canada.
    18. Alessandro Ferrari & Francisco Queirós, 2021. "Firm Heterogeneity, Market Power and Macroeconomic Fragility," CSEF Working Papers 627, Centre for Studies in Economics and Finance (CSEF), University of Naples, Italy.
    19. Bessonova, Evguenia, 2023. "Firms’ efficiency, exits and government procurement contracts," European Journal of Political Economy, Elsevier, vol. 76(C).
    20. S. Shumska, 2017. "Growth prospects of Ukrainian economy against the background of global trends," Economy and Forecasting, Valeriy Heyets, issue 3, pages 7-30.

    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:sae:enejou:v:37:y:2016:i:1_suppl:p:195-210. 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: SAGE Publications (email available below). General contact details of provider: .

    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.