Does a Small Difference Make a Difference? Impact of Feed-in Tariff on Renewable Power Generation in China

Yimeng Du () and Kenji Takeuchi
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Yimeng Du: Graduate School of Economics, Kobe University

No 1828, Discussion Papers from Graduate School of Economics, Kobe University

Abstract: This study investigates the effectiveness of regionally differentiated feed-in tariffs (FIT) for the development of renewable energy in China. By using a spatial regression discontinuity design, we estimate the impacts of regionally differentiated FITs on the outcome indicators of wind and solar power generation, such as utilization rate, installed capacity, power generation, and hours of operation. Our findings show that FIT implementation plays a role in promoting renewable energy development in resourcepoor regions. A small difference in the tariff rate leads to statistically significant differences in outcome indicators among regions. Our results suggest that regionally differentiated FITs might help mitigate the overproduction of wind electricity in regions with abundant wind resources but low electricity demand.

Keywords: Feed-in Tariff; Renewable Energy; Renewable Curtailment; Spatial Regression Discontinuity Design (search for similar items in EconPapers)
JEL-codes: Q42 Q48 (search for similar items in EconPapers)
Pages: 37 pages
Date: 2018-11
New Economics Papers: this item is included in nep-cna, nep-ene, nep-reg and nep-tra
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Journal Article: Does a small difference make a difference? Impact of feed-in tariff on renewable power generation in China (2020)
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