Policy design for renewable energy development based on government support: A system dynamics model

Ali Hashemizadeh, Yanbing Ju and Faezeh Zareian Baghdad Abadi

Applied Energy, 2024, vol. 376, issue PB, No S0306261924017148

Abstract: Energy's centrality to life, work, and progress underscores its indispensable role in modern society. However, burgeoning energy consumption and finite resources have prompted concerns regarding resource sustainability. Consequently, renewable energy sources have gained prominence as alternatives, integral to societal advancement. Therefore, with the increase in the price of fossil fuels and its limitations and the attention to renewable energies, in this research, we decided to study the implementation processes of the development of this type of energy about possible future scenarios and possible implementation policies at the time of each scenario. Let's pay Considering the dynamic complexities of this issue over time and the involvement of government sectors in policy discussions and private sectors in the implementation and participation of these two groups simultaneously, using dynamic system modeling to design a dynamic model that economic aspects, technical, political and environmental aspects should be evaluated simultaneously in a causal-disability manner. To implement this model, two scenarios of government support and non-support for this industry were taken into consideration, and in each scenario two policies of workforce training and technology import for the use of private sector managers and in the best scenario two policies of tax exemption and reduction of technology import tariff for Government decision-making was reviewed. The results showed that when this industry enjoys government support, the speed of development of renewable energy projects can be greatly increased by importing equipment. Without governmental backing, expedited progress is achievable through skilled labor training and employment. Tax exemptions are the most effective policy tool for stimulating renewable energy project processes, production, and sales. The findings underscore the pivotal role of strategic governmental intervention in facilitating renewable energy development, which is essential for meeting energy demands while mitigating environmental impact.

Keywords: Renewable energy; Energy development; System dynamics; Government support; Energy policy (search for similar items in EconPapers)
Date: 2024
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Citations: View citations in EconPapers (3)

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DOI: 10.1016/j.apenergy.2024.124331

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