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Impact of the Feed-in Tariff Policy on Renewable Innovation: Evidence from Wind Power Industry and Photovoltaic Power Industry in China

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  • Boqiang Lin
  • Yufang Chen

Abstract

Technological innovation is the key to develop wind power and photovoltaic power industries. The feed-in tariff (FIT) policy, as a demand-pull policy, is important to support renewable energy technological innovation. Using the “difference-in-differences†method, this paper investigates the impact of FIT policy of wind power and the impact of the FIT policy designed according to differences in the distribution of resources on wind power technological innovation. The findings show that the FIT policy can drive patenting in wind power technologies during the implementation period, but may play a relatively weak promoting role in technological innovation in the latter term, and the FIT policy designed according to differences in the distribution of resources also stimulates more patent counts. Finally, based on the fixed effect negative binomial regression model, this paper finds that the higher feed-in tariffs can increase the patent counts in photovoltaic power technologies.

Suggested Citation

  • Boqiang Lin & Yufang Chen, 2023. "Impact of the Feed-in Tariff Policy on Renewable Innovation: Evidence from Wind Power Industry and Photovoltaic Power Industry in China," The Energy Journal, , vol. 44(2), pages 29-46, March.
    • Handle: RePEc:sae:enejou:v:44:y:2023:i:2:p:29-46
    DOI: 10.5547/01956574.44.2.blin
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    References listed on IDEAS

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    1. Lin, Boqiang & Chen, Yufang, 2019. "Does electricity price matter for innovation in renewable energy technologies in China?," Energy Economics, Elsevier, vol. 78(C), pages 259-266.
    2. Nicolli, Francesco & Vona, Francesco, 2016. "Heterogeneous policies, heterogeneous technologies: The case of renewable energy," Energy Economics, Elsevier, vol. 56(C), pages 190-204.
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    4. Nick Johnstone & Ivan Haščič & David Popp, 2017. "Erratum to: Renewable Energy Policies and Technological Innovation: Evidence Based on Patent Counts," Environmental & Resource Economics, Springer;European Association of Environmental and Resource Economists, vol. 68(2), pages 441-444, October.
    5. Xia, Fang & Song, Feng, 2017. "The uneven development of wind power in China: Determinants and the role of supporting policies," Energy Economics, Elsevier, vol. 67(C), pages 278-286.
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    Cited by:

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    2. Lin, Tao & Zhang, Ling & Wan, Jun & Chen, Chien-Ming & Li, Jianglong, 2025. "Energy price uncertainty and renewable energy technological innovation: Evidence from listed Chinese firms," Renewable and Sustainable Energy Reviews, Elsevier, vol. 213(C).
    3. Habib, Md. Ahasan & Hossain, M.J., 2025. "Smart Grid, Smart FiT: A data-driven approach to optimize microgrid energy market," Energy Policy, Elsevier, vol. 203(C).
    4. Wang, Tianchi & Sun, Ting & Chen, Qiuling, 2024. "Curvilinear effect of policy intensity on innovation performance in the integrated circuit industry: Too much of a good thing?," Economic Analysis and Policy, Elsevier, vol. 82(C), pages 1337-1352.

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