The Impact of Environmental Policies on Renewable Energy Storage Decisions in the Power Supply Chain

Chunyi Ji (), Xinyue Wang, Wei Zhao, Xuan Wang and Wuyong Qian
Additional contact information
Chunyi Ji: School of Business, Jiangnan University, Wuxi 214122, China
Xinyue Wang: School of Business, Jiangnan University, Wuxi 214122, China
Wei Zhao: School of Business, Jiangnan University, Wuxi 214122, China
Xuan Wang: School of Business, Jiangnan University, Wuxi 214122, China
Wuyong Qian: School of Business, Jiangnan University, Wuxi 214122, China

Energies, 2025, vol. 18, issue 9, 1-24

Abstract: Energy storage is a proficient means of enhancing power supply reliability and facilitating the use of renewable energy. To study the impact of policies on energy storage decisions in the power supply chain, this paper constructs an electricity supply chain and compares the equilibrium results under four scenarios based on the Stackelberg game theory. The research reveals that both discharge subsidy and investment subsidy play a beneficial role in improving the level of energy storage technology, regardless of whether power producers choose to invest in or lease energy storage equipment. Furthermore, when combined with the implementation of a renewable portfolio standard, these subsidies can have beneficial outcomes. During the early stages of development in the energy storage industry, investment subsidy proves more advantageous for enhancing both technology levels and electricity demand. Conversely, at later stages of industry development, discharge subsidies become increasingly advantageous for enhancing technological advancements and fulfilling electricity demand. Furthermore, implementing a strategy in which power generators invest in energy storage can enhance their profitability while concurrently advancing technological standards and satisfying electricity demand.

Keywords: power supply chain; energy storage subsidy; renewable portfolio standard; energy storage investment (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: 2025
References: View complete reference list from CitEc
Citations:

Downloads: (external link)
https://www.mdpi.com/1996-1073/18/9/2152/pdf (application/pdf)
https://www.mdpi.com/1996-1073/18/9/2152/ (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:jeners:v:18:y:2025:i:9:p:2152-:d:1639974

Access Statistics for this article

Energies is currently edited by Ms. Agatha Cao

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