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Evaluation of contagious effects of China's wind power industrial policies

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  • Yu-Ling Hsiao, Cody
  • Sheng, Ni
  • Fu, Shenze
  • Wei, Xinyang

Abstract

In order to promote the sustainable development of the wind power industry, the Chinese Government has issued a series of related industrial policies. The promulgation of these policies not only greatly promotes the development of China's wind power sector, but may also generate potential contagion effects on other industries. This paper uses contagion tests based on linear dependence and higher-order co-moment statistics, such as co-skewness, co-volatility, and co-kurtosis, etc., to examine the contagion impacts of 8 relevant policies on 10 major economic industries in China for the period 2001–2018. The empirical results show that the wind power notices provide significant evidence of policy contagion than the national energy policies. Tail risk is more important in driving policy transmission as evident by third and fourth order co-moments which are significantly stronger than the correlation channel. It is not surprising that the financial sector is the industry most affected by the wind power sector in China, followed by the sectors of industrials and utilities which are closely related to the wind power.

Suggested Citation

  • Yu-Ling Hsiao, Cody & Sheng, Ni & Fu, Shenze & Wei, Xinyang, 2022. "Evaluation of contagious effects of China's wind power industrial policies," Energy, Elsevier, vol. 238(PB).
    • Handle: RePEc:eee:energy:v:238:y:2022:i:pb:s0360544221020089
    DOI: 10.1016/j.energy.2021.121760
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    Cited by:

    1. Bangjun Wang & Qiaoqiao Xing, 2022. "Evaluation of the Wind Power Industry Policy in China (2010–2021): A Quantitative Analysis Based on the PMC Index Model," Energies, MDPI, vol. 15(21), pages 1-14, November.
    2. Fuquan Zhao & Fanlong Bai & Xinglong Liu & Zongwei Liu, 2022. "A Review on Renewable Energy Transition under China’s Carbon Neutrality Target," Sustainability, MDPI, vol. 14(22), pages 1-27, November.
    3. Li, Aitong & Sun, Ying & Song, Xiaobin, 2023. "Gradual improvement and reactive intervention: China's policy pathway for developing the wind power industry," Renewable Energy, Elsevier, vol. 216(C).
    4. Hao Yue & Yagebai Zhao & Dabo Xin & Gaowa Xu, 2023. "Seasons Effects of Field Measurement of Near-Ground Wind Characteristics in a Complex Terrain Forested Region," Sustainability, MDPI, vol. 15(14), pages 1-33, July.
    5. Ou, Yinlin & Hsiao, Cody Yu-Ling & Chui, Chin Man, 2024. "How does the supply chain market respond to policy shocks? Evidence from solar photovoltaic sectors in China," Renewable Energy, Elsevier, vol. 232(C).
    6. Xu, Bin & Lin, Boqiang, 2024. "Green finance, green technology innovation, and wind power development in China: Evidence from spatial quantile model," Energy Economics, Elsevier, vol. 132(C).
    7. Jiang, Zihao & Shi, Jiarong, 2023. "Government intervention and technological innovation in the wind power industry in China: The role of industrial environmental turbulence," Applied Energy, Elsevier, vol. 344(C).
    8. Hsiao, Cody Yu-Ling & Yang, Rui & Zheng, Xin & Chiu, Yi-Bin, 2023. "Evaluations of policy contagion for new energy vehicle industry in China," Energy Policy, Elsevier, vol. 173(C).

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