Economy-equity equilibrium based bi-level provincial renewable portfolio standard target allocation: Perspective from China

Chuandang Zhao and Fengjuan Wang

Energy, 2024, vol. 290, issue C

Abstract: Renewable portfolio standards (RPS) are policy tools used in many countries to promote the use of renewable energy. However, balancing the equity and costs of RPS target allocations is very difficult. Therefore, this study proposed a bi-level framework to characterize this dilemma, in which the upper-level government, as the RPS target allocator, focuses on policy equity and maximizing global renewable energy utilization, and the lower-level government, as the policy implementer, considers the costs to achieve the RPS target. Only when the two types of decision-makers fully interact can they establish economical and equitable goals for a successful implementation. The bi-level mathematical model uses responsibility, capacity, and equality principles to measure equity and optimize the RPS target allocations. The proposed approach was applied to a Chinese case, from which it was found that the inclusion of hydropower in the RPS targets made equitable allocations more challenging, and equitable RPS target allocations have higher costs. Besides, central governments can determine equity principle weights to encourage greater renewable energy generation.

Keywords: Renewable portfolio standard; Equitable and economic allocation; Bi-level programming (search for similar items in EconPapers)
Date: 2024
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (1)

Downloads: (external link)
http://www.sciencedirect.com/science/article/pii/S0360544224000197
Full text for ScienceDirect subscribers only

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:eee:energy:v:290:y:2024:i:c:s0360544224000197

DOI: 10.1016/j.energy.2024.130248

Access Statistics for this article

Energy is currently edited by Henrik Lund and Mark J. Kaiser

More articles in Energy from Elsevier
Bibliographic data for series maintained by Catherine Liu ().