IDEAS home Printed from https://ideas.repec.org/a/spt/admaec/v15y2025i4f15_4_3.html
   My bibliography  Save this article

The Impact of Renewable Energy Subsidy Policies on Indirect Carbon Emissions in the Power System

Author

Listed:
  • Yuanying Chi
  • Chenfeng Zhang
  • Mengwan Zhang
  • Yanzhao Zhang
  • Yuxi Wu

Abstract

As a core policy instrument for low-carbon transition in China's power systems, the mechanism through which renewable energy subsidies mitigate indirect carbon emissions remains underexplored. This study empirically examines the impact of renewable energy generation subsidy policies on indirect carbon emissions in power systems using panel data from 30 Chinese provinces (2011-2020). The findings reveal that: (1) Renewable energy subsidies directly suppress indirect carbon emissions and reduce emissions indirectly by curbing energy consumption. (2) Regional heterogeneity shows stronger emission reduction effects in central and western China due to heavy industry agglomeration and reliance on electricity transmission. (3) Electricity consumption heterogeneity indicates significant emission reductions in medium-to-high consumption areas constrained by rigid energy demand. Policy recommendations include establishing a dynamic subsidy mechanism for central/western China, implementing "energy storage-quota" differentiated strategies for high/low consumption areas, and reorienting subsidies toward technological innovations such as hydrogen energy and energy storage. Â JEL classification numbers: P28.

Suggested Citation

  • Yuanying Chi & Chenfeng Zhang & Mengwan Zhang & Yanzhao Zhang & Yuxi Wu, 2025. "The Impact of Renewable Energy Subsidy Policies on Indirect Carbon Emissions in the Power System," Advances in Management and Applied Economics, SCIENPRESS Ltd, vol. 15(4), pages 1-3.
    • Handle: RePEc:spt:admaec:v:15:y:2025:i:4:f:15_4_3
    as

    Download full text from publisher

    File URL: http://www.scienpress.com/Upload/AMAE%2fVol%2015_4_3.pdf
    Download Restriction: no
    ---><---

    More about this item

    Keywords

    Renewable Energy; Subsidy Policy; Power Systems; Indirect Carbon Emissions; Carbon Neutrality Goals.;
    All these keywords.

    JEL classification:

    • P28 - Political Economy and Comparative Economic Systems - - Socialist and Transition Economies - - - Natural Resources; Environment

    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:spt:admaec:v:15:y:2025:i:4:f:15_4_3. 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.

    We have no bibliographic references for this item. You can help adding them by using 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: Eleftherios Spyromitros-Xioufis (email available below). General contact details of provider: http://www.scienpress.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.