The Development of the Renewable Energy Power Industry under Feed-In Tariff and Renewable Portfolio Standard: A Case Study of China’s Photovoltaic Power Industry

Yuzhuo Zhang, Xingang Zhao, Yi Zuo, Lingzhi Ren and Ling Wang
Additional contact information
Yuzhuo Zhang: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Xingang Zhao: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Yi Zuo: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Lingzhi Ren: School of Economics and Management, North China Electric Power University, Beijing 102206, China
Ling Wang: State Grid Liaoning Electric Power Co., Ltd., Benxi Power Supply Company, Benxi 117020, China

Sustainability, 2017, vol. 9, issue 4, 1-23

Abstract: Among the regulatory policies, feed-in tariffs (FIT) and renewable portfolio standards (RPS) are the most popular to promote the development of renewable energy power industry. They can significantly contribute to the expansion of domestic industrial activities in terms of sustainable energy. In this paper, we synthetically consider various important factors with the analysis of the existing literature, and use system dynamics (SD) to establish models of long-term development of the renewable energy power industry under FIT and RPS schemes. The model not only clearly shows the complex logical relationship between the factors but also reveals the process of coordination between the two policy tools in the development of the renewable energy power industry. In addition, as an example of development of renewable energy industry, the paper studies the development of China’s photovoltaic power industry under different scenarios. The models proposed in this paper can provide a reference for scholars to study development of the renewable energy power industry in different countries, thereby facilitating an understanding of the renewable energy power’s long-term sustainable development pattern under FIT and RPS schemes, and helping to provide references for policy-making institutions. The results show that in the perfect competitive market, the implementation of RPS can promote long-term and rapid development of China’s photovoltaic power industry given the constraints and actions of the mechanisms of RPS quota proportion, the TGC valid period, and fines, compared with FIT. At the end of the paper, policy implications are offered as references for the government.

Keywords: renewable energy power; sustainable development of industry; feed-in tariff; renewable portfolio standard; system dynamics (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2017
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (19)

Downloads: (external link)
https://www.mdpi.com/2071-1050/9/4/532/pdf (application/pdf)
https://www.mdpi.com/2071-1050/9/4/532/ (text/html)

Related works:
This item may be available elsewhere in EconPapers: Search for items with the same title.

Export reference: BibTeX RIS (EndNote, ProCite, RefMan) HTML/Text

Persistent link: https://EconPapers.repec.org/RePEc:gam:jsusta:v:9:y:2017:i:4:p:532-:d:94618

Access Statistics for this article

Sustainability is currently edited by Ms. Alexandra Wu

More articles in Sustainability from MDPI
Bibliographic data for series maintained by MDPI Indexing Manager ().