Optimal policy supports for renewable energy technology development: A dynamic programming model

Hao Ding, Dequn Zhou and P. Zhou
Authors registered in the RePEc Author Service: Peng Zhou

Energy Economics, 2020, vol. 92, issue C

Abstract: Policy support has played a significant role in driving the rapid development of renewable energy technologies (RETs). This study constructed a dynamic programming model to derive the optimal policy supports for RETs, integrating both supply and demand sides. The sensitivity of policy performance on the cost and price elasticities of RET diffusion was also analyzed. The results show that policy supports could be a main force for RET development in their initial periods. In the long run, policy makers need to decrease the support level faster than the decrease in RET cost to maintain a high policy efficiency. Further improving the efficiency of policy is possible considering the influences of technical change on RET development.

Keywords: Renewable energy technology; Dynamic optimization; Energy system optimization (search for similar items in EconPapers)
JEL-codes: C61 C73 D04 K32 L11 L52 (search for similar items in EconPapers)
Date: 2020
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

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Persistent link: https://EconPapers.repec.org/RePEc:eee:eneeco:v:92:y:2020:i:c:s0140988320301055

DOI: 10.1016/j.eneco.2020.104765

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