IDEAS home Printed from https://ideas.repec.org/a/eee/enepol/v156y2021ics030142152100255x.html
   My bibliography  Save this article

A network-based evolutionary analysis of the diffusion of cleaner energy substitution in enterprises: The roles of PEST factors

Author

Listed:
  • Li, Fangyi
  • Cao, Xin
  • Ou, Rui

Abstract

In countries highly dependent on coal and oil, the substitution of relatively cleaner energy for fossil fuels in industrial and residential sectors (cleaner energy substitution, or CES) is conducive to technology advancement and pollution abatement. Since CES is a process met with resistance by a portion of enterprises in China, this study will investigate the roles of external factors by simulating CES diffusion in enterprise networks. The PEST (political, economic, social, and technological factors) analysis framework, referencing corporation strategy management, is employed to select potential external factors of CES diffusion. The results show that factors will affect the diffusion of CES by changing the payoffs of different enterprises. Reducing the costs of cleaner energy and related equipment will promote diffusion. Besides, improving consumer preferences for green products, consolidating responses to public complaints on pollution and promoting information exchange among enterprises are beneficial to diffusion. It is novel that this paper demonstrates that diffusion will be hindered by supply interruptions of cleaner energy, which means that stable supply after a wide range of adoption is important. Focusing on PEST factors, this study introduces a useful framework to investigate the potential factors of enterprises’ green decisions and behaviours and offers fresh insights into promoting CES adoption and energy transition in developing countries.

Suggested Citation

  • Li, Fangyi & Cao, Xin & Ou, Rui, 2021. "A network-based evolutionary analysis of the diffusion of cleaner energy substitution in enterprises: The roles of PEST factors," Energy Policy, Elsevier, vol. 156(C).
    • Handle: RePEc:eee:enepol:v:156:y:2021:i:c:s030142152100255x
    DOI: 10.1016/j.enpol.2021.112385
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S030142152100255X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.enpol.2021.112385?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    As the access to this document is restricted, you may want to search for a different version of it.

    References listed on IDEAS

    as
    1. Wang, Ge & Li, Yang & Zuo, Jian & Hu, Wenbo & Nie, Qingwei & Lei, Heqian, 2021. "Who drives green innovations? Characteristics and policy implications for green building collaborative innovation networks in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 143(C).
    2. Dong, Xiaoqing & Li, Chaolin & Li, Ji & Wang, Jia & Huang, Wantao, 2010. "A game-theoretic analysis of implementation of cleaner production policies in the Chinese electroplating industry," Resources, Conservation & Recycling, Elsevier, vol. 54(12), pages 1442-1448.
    3. Li, Meng & Jin, Tianyu & Liu, Shenglong & Zhou, Shaojie, 2021. "The cost of clean energy transition in rural China: Evidence based on marginal treatment effects," Energy Economics, Elsevier, vol. 97(C).
    4. Chen, Han & Chen, Wenying, 2019. "Potential impact of shifting coal to gas and electricity for building sectors in 28 major northern cities of China," Applied Energy, Elsevier, vol. 236(C), pages 1049-1061.
    5. Li, Jingjing & Jiao, Jianling & Tang, Yunshu, 2019. "An evolutionary analysis on the effect of government policies on electric vehicle diffusion in complex network," Energy Policy, Elsevier, vol. 129(C), pages 1-12.
    6. Niu, Dong-xiao & Song, Zong-yun & Xiao, Xin-li, 2017. "Electric power substitution for coal in China: Status quo and SWOT analysis," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 610-622.
    7. Özdemir, Özge & Hobbs, Benjamin F. & van Hout, Marit & Koutstaal, Paul R., 2020. "Capacity vs energy subsidies for promoting renewable investment: Benefits and costs for the EU power market," Energy Policy, Elsevier, vol. 137(C).
    8. Daniel Friedman, 1998. "On economic applications of evolutionary game theory," Journal of Evolutionary Economics, Springer, vol. 8(1), pages 15-43.
    9. Liu, HuiHui & Zhang, ZhongXiang & Chen, Zhan-Ming & Dou, DeSheng, 2019. "The impact of China's electricity price deregulation on coal and power industries: Two-stage game modeling," Energy Policy, Elsevier, vol. 134(C).
    10. Fan, Ruguo & Dong, Lili, 2018. "The dynamic analysis and simulation of government subsidy strategies in low-carbon diffusion considering the behavior of heterogeneous agents," Energy Policy, Elsevier, vol. 117(C), pages 252-262.
    11. Halleck Vega, Solmaria & Mandel, Antoine, 2018. "Technology Diffusion and Climate Policy: A Network Approach and its Application to Wind Energy," Ecological Economics, Elsevier, vol. 145(C), pages 461-471.
    12. Athanasios Kolios & George Read, 2013. "A Political, Economic, Social, Technology, Legal and Environmental (PESTLE) Approach for Risk Identification of the Tidal Industry in the United Kingdom," Energies, MDPI, vol. 6(10), pages 1-23, September.
    13. Zhang, Yanfang & Zhang, Ming & Liu, Yue & Nie, Rui, 2017. "Enterprise investment, local government intervention and coal overcapacity: The case of China," Energy Policy, Elsevier, vol. 101(C), pages 162-169.
    14. Liu, Dehai & Xiao, Xingzhi & Li, Hongyi & Wang, Weiguo, 2015. "Historical evolution and benefit–cost explanation of periodical fluctuation in coal mine safety supervision: An evolutionary game analysis framework," European Journal of Operational Research, Elsevier, vol. 243(3), pages 974-984.
    15. Zhao, Tian & Liu, Zhixin, 2019. "A novel analysis of carbon capture and storage (CCS) technology adoption: An evolutionary game model between stakeholders," Energy, Elsevier, vol. 189(C).
    16. Ding, Song, 2018. "A novel self-adapting intelligent grey model for forecasting China's natural-gas demand," Energy, Elsevier, vol. 162(C), pages 393-407.
    17. Petter Holme, 2019. "Rare and everywhere: Perspectives on scale-free networks," Nature Communications, Nature, vol. 10(1), pages 1-3, December.
    18. Nunes, L.J.R. & Matias, J.C.O. & Catalão, J.P.S., 2015. "Analysis of the use of biomass as an energy alternative for the Portuguese textile dyeing industry," Energy, Elsevier, vol. 84(C), pages 503-508.
    19. Ang, James B. & Fredriksson, Per G. & Sharma, Swati, 2020. "Individualism and the adoption of clean energy technology," Resource and Energy Economics, Elsevier, vol. 61(C).
    20. Li, Jingjing & Jiao, Jianling & Tang, Yunshu, 2020. "Analysis of the impact of policies intervention on electric vehicles adoption considering information transmission—based on consumer network model," Energy Policy, Elsevier, vol. 144(C).
    21. Wang, Qun & Wang, Hanchen & Zhang, Zhuxi & Li, Yumeng & Liu, Yu & Perc, Matjaž, 2018. "Heterogeneous investments promote cooperation in evolutionary public goods games," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 502(C), pages 570-575.
    22. Zhao, Rui & Zhou, Xiao & Han, Jiaojie & Liu, Chengliang, 2016. "For the sustainable performance of the carbon reduction labeling policies under an evolutionary game simulation," Technological Forecasting and Social Change, Elsevier, vol. 112(C), pages 262-274.
    23. Lixia Liu & Yuchao Zhu & Shubing Guo, 2020. "The Evolutionary Game Analysis of Multiple Stakeholders in the Low-Carbon Agricultural Innovation Diffusion," Complexity, Hindawi, vol. 2020, pages 1-12, February.
    24. Bing Zhu & Wenping Wang, 2014. "The Evolution of the Strategies of Innovation Cooperation in Scale-Free Network," Discrete Dynamics in Nature and Society, Hindawi, vol. 2014, pages 1-10, March.
    Full references (including those not matched with items on IDEAS)

    Citations

    Citations are extracted by the CitEc Project, subscribe to its RSS feed for this item.
    as


    Cited by:

    1. Ruguo Fan & Rongkai Chen, 2022. "Promotion Policies for Electric Vehicle Diffusion in China Considering Dynamic Consumer Preferences: A Network-Based Evolutionary Analysis," IJERPH, MDPI, vol. 19(9), pages 1-21, April.
    2. Zhao, Tian & Liu, Zhixin & Jamasb, Tooraj, 2022. "Developing hydrogen refueling stations: An evolutionary game approach and the case of China," Energy Economics, Elsevier, vol. 115(C).
    3. Zeng, Yongchao & Shi, Yingying & Shahbaz, Muhammad & Liu, Qin, 2024. "Scenario-based policy representative exploration: A novel approach to analyzing policy portfolios and its application to low-carbon energy diffusion," Energy, Elsevier, vol. 296(C).
    4. Shi, Yingying & Wei, Zixiang & Shahbaz, Muhammad & Zeng, Yongchao, 2021. "Exploring the dynamics of low-carbon technology diffusion among enterprises: An evolutionary game model on a two-level heterogeneous social network," Energy Economics, Elsevier, vol. 101(C).
    5. Dongming Jiang & Fang Jia, 2022. "Extreme Spillover between Green Bonds and Clean Energy Markets," Sustainability, MDPI, vol. 14(10), pages 1-15, May.
    6. Nishant Sapra & Imlak Shaikh & Ashutosh Dash, 2023. "Impact of Proof of Work (PoW)-Based Blockchain Applications on the Environment: A Systematic Review and Research Agenda," JRFM, MDPI, vol. 16(4), pages 1-29, March.
    7. El Khoury, Rim & Alshater, Muneer M. & Li, Yanshuang & Xiong, Xiong, 2024. "Quantile time-frequency connectedness among G7 stock markets and clean energy markets," The Quarterly Review of Economics and Finance, Elsevier, vol. 93(C), pages 71-90.
    8. Xingwei Li & Jiachi Dai & Jinrong He & Jingru Li & Yicheng Huang & Xiang Liu & Qiong Shen, 2022. "Mechanism of Enterprise Green Innovation Behavior Considering Coevolution Theory," IJERPH, MDPI, vol. 19(16), pages 1-19, August.
    9. Jia Xue & Youshi He & Peng Gao & Yin Tang & Hanyang Xu, 2022. "Multi-Agent Evolutionary Game Model: Corporate Low-Carbon Manufacturing, Chinese Government Supervision, and Public Media Investigation," Sustainability, MDPI, vol. 14(9), pages 1-24, May.
    10. Zhang, Mingming & Pang, Zhichao & Liu, Liyun & Yang, Zikun & Zhou, Dequn, 2024. "Risk assessment of China's overseas energy investments considering the response ability to major risk events: A case study of COVID-19," Energy, Elsevier, vol. 288(C).
    11. Chen, Rongkai & Fan, Ruguo & Wang, Dongxue & Yao, Qianyi, 2023. "Effects of multiple incentives on electric vehicle charging infrastructure deployment in China: An evolutionary analysis in complex network," Energy, Elsevier, vol. 264(C).
    12. Wang, Yitong & Fan, Ruguo & Du, Kang & Bao, Xuguang, 2023. "Exploring incentives to promote electric vehicles diffusion under subsidy abolition: An evolutionary analysis on multiplex consumer social networks," Energy, Elsevier, vol. 276(C).
    13. Nur Arifatul Ulya & Edwin Martin & Mamat Rahmat & Bambang Tejo Premono & Leo Rio Ependi Malau & Efendi Agus Waluyo & Andika Imanullah & Abdul Hakim Lukman & Asmaliyah & Armansyah & Dani Saputra & Etik, 2022. "Enabling Factors of NTFP Business Development for Ecosystem Restoration: The Case of Tamanu Oil in Indonesian Degraded Peatland," Sustainability, MDPI, vol. 14(17), pages 1-26, August.

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Li, Jingjing & Jiao, Jianling & Tang, Yunshu, 2019. "An evolutionary analysis on the effect of government policies on electric vehicle diffusion in complex network," Energy Policy, Elsevier, vol. 129(C), pages 1-12.
    2. Liu, Jicheng & Sun, Jiakang & Yuan, Hanying & Su, Yihan & Feng, Shuxian & Lu, Chaoran, 2022. "Behavior analysis of photovoltaic-storage-use value chain game evolution in blockchain environment," Energy, Elsevier, vol. 260(C).
    3. Jin, Tao & Jiang, Yulian & Liu, Xingwen, 2023. "Evolutionary game analysis of the impact of dynamic dual credit policy on new energy vehicles after subsidy cancellation," Applied Mathematics and Computation, Elsevier, vol. 440(C).
    4. Ruguo Fan & Rongkai Chen, 2022. "Promotion Policies for Electric Vehicle Diffusion in China Considering Dynamic Consumer Preferences: A Network-Based Evolutionary Analysis," IJERPH, MDPI, vol. 19(9), pages 1-21, April.
    5. Yuechao Chao & Gang Wang, 2023. "Analyzing the Effects of Governmental Policy and Solar Power on Facilitating Carbon Neutralization in the Context of Energy Transition: A Four-Party Evolutionary Game Study," Sustainability, MDPI, vol. 15(6), pages 1-21, March.
    6. Shi, Yingying & Wei, Zixiang & Shahbaz, Muhammad & Zeng, Yongchao, 2021. "Exploring the dynamics of low-carbon technology diffusion among enterprises: An evolutionary game model on a two-level heterogeneous social network," Energy Economics, Elsevier, vol. 101(C).
    7. Sun, Bo & Fan, Boyang & Wu, Chun & Xie, Jingdong, 2024. "Exploring incentive mechanisms for the CCUS project in China's coal-fired power plants: An option-game approach," Energy, Elsevier, vol. 288(C).
    8. Xingyi Yang & Xiaopei Dai & Zhenyu Liu, 2023. "Retailers’ Audit Strategies for Green Agriculture Based on Dynamic Evolutionary Game," Sustainability, MDPI, vol. 15(4), pages 1-17, February.
    9. Li, Ke & Yuan, Weihong & Li, Jianglong & Ai, Hongshan, 2021. "Effects of time-dependent environmental regulations on air pollution: Evidence from the Changsha-Zhuzhou-Xiangtan region, China," World Development, Elsevier, vol. 138(C).
    10. Wenke Wang & Xiaoqiong You & Kebei Liu & Yenchun Jim Wu & Daming You, 2020. "Implementation of a Multi-Agent Carbon Emission Reduction Strategy under the Chinese Dual Governance System: An Evolutionary Game Theoretical Approach," IJERPH, MDPI, vol. 17(22), pages 1-21, November.
    11. He, Yong & Jiang, Ruipeng & Liao, Nuo, 2023. "How to promote the Chinese Certified Emission Reduction scheme in the carbon market? A study based on tripartite evolutionary game model," Energy, Elsevier, vol. 285(C).
    12. Yang, Yunpeng & Yang, Weixin & Chen, Hongmin & Li, Yin, 2020. "China’s energy whistleblowing and energy supervision policy: An evolutionary game perspective," Energy, Elsevier, vol. 213(C).
    13. Chen, Feng & Wu, Bin & Lou, Wenqian, 2021. "An evolutionary analysis on the effect of government policies on green R & D of photovoltaic industry diffusion in complex network," Energy Policy, Elsevier, vol. 152(C).
    14. Li-cai Lei & Shang Gao & En-yu Zeng, 2020. "Regulation strategies of ride-hailing market in China: an evolutionary game theoretic perspective," Electronic Commerce Research, Springer, vol. 20(3), pages 535-563, September.
    15. Liu, Dandan & Wang, Delu & Mao, Jinqi, 2023. "Study on policy synergy strategy of the central government and local governments in the process of coal de-capacity: Based on a two-stage evolutionary game method," Resources Policy, Elsevier, vol. 80(C).
    16. Liu, Weihua & Long, Shangsong & Xie, Dong & Liang, Yanjie & Wang, Jinkun, 2021. "How to govern the big data discriminatory pricing behavior in the platform service supply chain?An examination with a three-party evolutionary game model," International Journal of Production Economics, Elsevier, vol. 231(C).
    17. Wang, Xueyang & Sun, Xiumei & Ahmad, Mahmood & Zhang, Haotian, 2023. "Does low carbon energy transition impede air pollution? Evidence from China's coal-to-gas policy," Resources Policy, Elsevier, vol. 83(C).
    18. Chen, Shangrong & Bravo-Melgarejo, Sai & Mongeau, Romain & Malavolti, Estelle, 2023. "Adopting and diffusing hydrogen technology in air transport: An evolutionary game theory approach," Energy Economics, Elsevier, vol. 125(C).
    19. Wang, Yitong & Fan, Ruguo & Du, Kang & Bao, Xuguang, 2023. "Exploring incentives to promote electric vehicles diffusion under subsidy abolition: An evolutionary analysis on multiplex consumer social networks," Energy, Elsevier, vol. 276(C).
    20. Keke Sun & Xia Cao & Zeyu Xing, 2021. "Can the Diffusion Modes of Green Technology Affect the Enterprise’s Technology Diffusion Network towards Sustainable Development of Hospitality and Tourism Industry in China?," Sustainability, MDPI, vol. 13(16), pages 1-18, August.

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:eee:enepol:v:156:y:2021:i:c:s030142152100255x. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Catherine Liu (email available below). General contact details of provider: http://www.elsevier.com/locate/enpol .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.