Is the Renewable Portfolio Standard in China Effective? Research on RPS Allocation Efficiency in Chinese Provinces Based on the Zero-Sum DEA Model

Shangjia Wang, Wenhui Zhao, Shuwen Fan, Lei Xue, Zijuan Huang and Zhigang Liu
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Shangjia Wang: College of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, China
Wenhui Zhao: College of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, China
Shuwen Fan: College of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, China
Lei Xue: State Grid Shanxi Economic Research Institute, Taiyuan 030021, China
Zijuan Huang: Shanghai Envision Digital Technology Co., Ltd., Shanghai 200011, China
Zhigang Liu: Beijing Bojin Hengxin Technology Consulting Company, Beijing 100080, China

Energies, 2022, vol. 15, issue 11, 1-18

Abstract: As one of the countries with the most rapid development of new energy, China has been committed to exploring countermeasures to the challenges of new energy consumption. After more than ten years of consideration and consultation, the “renewable portfolio standard“(RPS) for “renewable energy power consumption responsibility weighting” has landed in China. However, in the official affirmation issued by the National Energy Administration, theoretical support for the basis of the initial quota allocation is still lacking. In this study, we examine the efficiency of the weight allocation scheme for renewable energy power consumption responsibilities, which was announced by the National Energy Administration in 2018 and which is based on the BCC-DEA efficiency model. The results indicate that most provinces have low allocation efficiency under this allocation scheme. Therefore, we propose an optimal allocation scheme for a renewable energy consumption quota, based on the ZSG-DEA model. With the achievement of its target, this study’s allocation scheme would ensure 100% efficiency in all provinces, improve provincial economic efficiency, and simultaneously bring economic growth. After analyzing the fairness before and after adjustment of the RPS, our findings suggest that the adjusted RPS allocation scheme can promote equity in per capita renewable electricity consumption.

Keywords: renewable portfolio standards; China’s renewable energy consumption; zero-sum DEA model; ZSG-DEA model (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2022
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

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