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The role of rural cooperatives in the development of rural household photovoltaics: An evolutionary game study

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  • Su, Xiaoning
  • Liu, Pengfei
  • Mei, Yingdan
  • Chen, Jiaru

Abstract

Promoting photovoltaics (PV) in rural households is a crucial step towards green development and rural revitalization. The current practice negatively affects the profit margins of rural households, creating a challenge in balancing efficiency and equity. This paper utilizes evolutionary game theory to construct a bipartite evolutionary game model involving enterprise and rural households, and a tripartite model involving enterprise, rural households, and rural PV cooperatives. We then investigate the strategic behavior and choices of stakeholders and examine the evolutionary trajectory of the system under different parameters based on numerical simulations. Results show that the rural PV cooperatives can increase the strategic choices of enterprises by reducing their market entry costs. The rural PV cooperatives also increase the expected profits of enterprises, rural households, and total social welfare. Our findings suggest that rural PV cooperatives may encourage the adoption of rural household PV and provide insights to balance efficiency and equity.

Suggested Citation

  • Su, Xiaoning & Liu, Pengfei & Mei, Yingdan & Chen, Jiaru, 2023. "The role of rural cooperatives in the development of rural household photovoltaics: An evolutionary game study," Energy Economics, Elsevier, vol. 126(C).
    • Handle: RePEc:eee:eneeco:v:126:y:2023:i:c:s0140988323004607
    DOI: 10.1016/j.eneco.2023.106962
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    More about this item

    Keywords

    Household photovoltaic; Evolutionary game; Rural PV cooperatives;
    All these keywords.

    JEL classification:

    • C73 - Mathematical and Quantitative Methods - - Game Theory and Bargaining Theory - - - Stochastic and Dynamic Games; Evolutionary Games
    • O13 - Economic Development, Innovation, Technological Change, and Growth - - Economic Development - - - Agriculture; Natural Resources; Environment; Other Primary Products
    • Q4 - Agricultural and Natural Resource Economics; Environmental and Ecological Economics - - Energy

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