IDEAS home Printed from https://ideas.repec.org/a/eee/energy/v297y2024ics0360544224009769.html
   My bibliography  Save this article

Renewable energy and carbon-neutral gaming: A holistic approach to sustainable electricity

Author

Listed:
  • Lee, Chien-Chiang
  • Hussain, Jafar
  • Mu, Xian

Abstract

Carbon emissions are a global issue around the world due to energy consumption, and to resolve this, increasing focus has been placed on attaining carbon neutrality. This research bridges the gap in related literature by considering perspectives on electricity. We develop a regression model from renewable energy consumption and production and apply game theory to get different decisions on electricity production from renewable energy (RE) production-consumption and subsidies on RE resources. Subsequently, a simulation-driven optimization method is employed to generate various scenarios. Various experiments are manipulated to find the optimal decisions of carbon-neutral indicators. Results indicate that subsidies on renewable energy that generate electricity exhibit a significant role in maximizing CO2 emission reduction. It is found that subsidies on wind energy consumption and production play a pivotal role in mitigating carbon emissions. This study elaborates on a valuable contribution in providing optimal decisions for achieving carbon neutrality in RE production and consumption. It offers guidelines to pay attention to the policies about RE resources to make the environment clean. Ultimately, this research not only presents optimal pathways for attaining carbon neutrality but also marks the necessity of targeted policies focused on RE resources to promote a cleaner and sustainable environment globally.

Suggested Citation

  • Lee, Chien-Chiang & Hussain, Jafar & Mu, Xian, 2024. "Renewable energy and carbon-neutral gaming: A holistic approach to sustainable electricity," Energy, Elsevier, vol. 297(C).
    • Handle: RePEc:eee:energy:v:297:y:2024:i:c:s0360544224009769
    DOI: 10.1016/j.energy.2024.131203
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0360544224009769
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.energy.2024.131203?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. Roy, S. & Lam, Y.F. & Hossain, M.U. & Chan, J.C.L., 2022. "Comprehensive evaluation of electricity generation and emission reduction potential in the power sector using renewable alternatives in Vietnam," Renewable and Sustainable Energy Reviews, Elsevier, vol. 157(C).
    2. Lee, Chien-Chiang & Hussain, Jafar, 2023. "An assessment of socioeconomic indicators and energy consumption by considering green financing," Resources Policy, Elsevier, vol. 81(C).
    3. Wang, En-Ze & Lee, Chien-Chiang, 2022. "The impact of clean energy consumption on economic growth in China: Is environmental regulation a curse or a blessing?," International Review of Economics & Finance, Elsevier, vol. 77(C), pages 39-58.
    4. Li, Xingguang, 2023. "Farmland rental market participation and residential energy consumption: Evidence from rural areas in China," Energy, Elsevier, vol. 268(C).
    5. Li, Huanhuan & Zhang, Runfan & Mahmud, Md. Apel & Hredzak, Branislav, 2022. "A novel coordinated optimization strategy for high utilization of renewable energy sources and reduction of coal costs and emissions in hybrid hydro-thermal-wind power systems," Applied Energy, Elsevier, vol. 320(C).
    6. Li, Yingcheng, 2022. "Path-breaking industrial development reduces carbon emissions: Evidence from Chinese Provinces, 1999–2011," Energy Policy, Elsevier, vol. 167(C).
    7. Lee, Chien-Chiang & Wang, Fuhao & Chang, Yu-Fang, 2023. "Towards net-zero emissions: Can green bond policy promote green innovation and green space?," Energy Economics, Elsevier, vol. 121(C).
    8. Zhang, Chongchong & Lin, Boqiang, 2024. "Impact of introducing Chinese certified emission reduction scheme to the carbon market: Promoting renewable energy," Renewable Energy, Elsevier, vol. 222(C).
    9. Yu, Yanghao & Du, Ershun & Chen, Zhichao & Su, Yibo & Zhang, Xianfeng & Yang, Hongbin & Wang, Peng & Zhang, Ning, 2022. "Optimal portfolio of a 100% renewable energy generation base supported by concentrating solar power," Renewable and Sustainable Energy Reviews, Elsevier, vol. 170(C).
    10. Xing, Zongyi & Zhu, Junlin & Zhang, Zhenyu & Qin, Yong & Jia, Limin, 2022. "Energy consumption optimization of tramway operation based on improved PSO algorithm," Energy, Elsevier, vol. 258(C).
    11. Lee, Chien-Chiang & Hussain, Jafar, 2022. "Carbon neutral sustainability and green development during energy consumption," Innovation and Green Development, Elsevier, vol. 1(1).
    12. Selcuk, O. & Acar, B. & Dastan, S.A., 2022. "System integration costs of wind and hydropower generations in Turkey," Renewable and Sustainable Energy Reviews, Elsevier, vol. 156(C).
    13. Kettner, Claudia & Böheim, Michael & Sommer, Mark & Gaugl, Robert & Bachhiesl, Udo & Gruber, Lia & Klatzer, Thomas Florian & Wogrin, Sonja & Kratena, Kurt, 2024. "Transformation to a renewable electricity system in Austria: Insights from an integrated model analysis," Renewable Energy, Elsevier, vol. 223(C).
    14. Islam, Md. Monirul & Sohag, Kazi & Mariev, Oleg, 2023. "Geopolitical risks and mineral-driven renewable energy generation in China: A decomposed analysis," Resources Policy, Elsevier, vol. 80(C).
    15. Wu, Zemin & Wu, Qiuwei & Yu, Xianyu & Wang, Qunwei & Tan, Jin, 2024. "Exploring phase-out path of China's coal power plants with its dynamic impact on electricity balance," Energy Policy, Elsevier, vol. 187(C).
    16. Zhou, Zhanhang & Zeng, Chen & Li, Keke & Yang, Yuemin & Zhao, Kuokuo & Wang, Zhen, 2024. "Decomposition of the decoupling between electricity CO2 emissions and economic growth: A production and consumption perspective," Energy, Elsevier, vol. 293(C).
    17. Adefarati, T. & Bansal, R.C., 2019. "Reliability, economic and environmental analysis of a microgrid system in the presence of renewable energy resources," Applied Energy, Elsevier, vol. 236(C), pages 1089-1114.
    18. Sun, Bo & Li, Mingzhe & Wang, Fan & Xie, Jingdong, 2023. "An incentive mechanism to promote residential renewable energy consumption in China's electricity retail market: A two-level Stackelberg game approach," Energy, Elsevier, vol. 269(C).
    19. Mundaca, Gabriela & Strand, Jon & Young, Ian R., 2021. "Carbon pricing of international transport fuels: Impacts on carbon emissions and trade activity," Journal of Environmental Economics and Management, Elsevier, vol. 110(C).
    20. Pan, Xunzhang & Ma, Xueqing & Zhang, Yanru & Shao, Tianming & Peng, Tianduo & Li, Xiang & Wang, Lining & Chen, Wenying, 2023. "Implications of carbon neutrality for power sector investments and stranded coal assets in China," Energy Economics, Elsevier, vol. 121(C).
    21. Tselika, Kyriaki & Tselika, Maria & Demetriades, Elias, 2024. "Quantifying the short-term asymmetric effects of renewable energy on the electricity merit-order curve," Energy Economics, Elsevier, vol. 132(C).
    22. Doğan, Buhari & Chu, Lan Khanh & Ghosh, Sudeshna & Diep Truong, Huong Hoang & Balsalobre-Lorente, Daniel, 2022. "How environmental taxes and carbon emissions are related in the G7 economies?," Renewable Energy, Elsevier, vol. 187(C), pages 645-656.
    23. Lee, Chien-Chiang & Wang, Chih-Wei & Thinh, Bui Tien & Purnama, Muhammad Yusuf Indra & Sharma, Susan Sunila, 2024. "Corporate leverage and leverage speed of adjustment: Does environmental policy stringency matter?," Pacific-Basin Finance Journal, Elsevier, vol. 85(C).
    24. Masoumzadeh, Amin & Alpcan, Tansu & Nekouei, Ehsan, 2020. "Designing tax and subsidy incentives towards a green and reliable electricity market," Energy, Elsevier, vol. 195(C).
    25. Zhao, Ziwen & Ding, Xinjun & Behrens, Paul & Li, Jianling & He, Mengjiao & Gao, Yuanqiang & Liu, Gongcheng & Xu, Beibei & Chen, Diyi, 2023. "The importance of flexible hydropower in providing electricity stability during China’s coal phase-out," Applied Energy, Elsevier, vol. 336(C).
    26. Yan Wu & Chunlai Chen & Cong Hu, 2021. "Does the Belt and Road Initiative Increase the Carbon Emission Intensity of Participating Countries?," China & World Economy, Institute of World Economics and Politics, Chinese Academy of Social Sciences, vol. 29(3), pages 1-25, May.
    27. Atems, Bebonchu & Mette, Jehu & Lin, Guoyu & Madraki, Golshan, 2023. "Estimating and forecasting the impact of nonrenewable energy prices on US renewable energy consumption," Energy Policy, Elsevier, vol. 173(C).
    28. Haider, Salman & Zafar, Shadman & Jindal, Abhinav, 2024. "Socioeconomic drivers of residential electricity expenditures in India," Utilities Policy, Elsevier, vol. 88(C).
    29. Li, Songran & Shao, Qinglong, 2022. "Greening the finance for climate mitigation: An ARDL–ECM approach," Renewable Energy, Elsevier, vol. 199(C), pages 1469-1481.
    30. Hou, Xiang & Hu, Qianlin & Liang, Xin & Xu, Jingxuan, 2023. "How do low-carbon city pilots affect carbon emissions? Staggered difference in difference evidence from Chinese firms," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 664-686.
    31. Meng, Xin & Yu, Yanni, 2023. "Can renewable energy portfolio standards and carbon tax policies promote carbon emission reduction in China's power industry?," Energy Policy, Elsevier, vol. 174(C).
    32. Dehghani-sanij, A.R. & Soltani, M. & Raahemifar, K., 2015. "A new design of wind tower for passive ventilation in buildings to reduce energy consumption in windy regions," Renewable and Sustainable Energy Reviews, Elsevier, vol. 42(C), pages 182-195.
    33. Lv, Chengchao & Shao, Changhua & Lee, Chien-Chiang, 2021. "Green technology innovation and financial development: Do environmental regulation and innovation output matter?," Energy Economics, Elsevier, vol. 98(C).
    34. Itiki, Rodney & Manjrekar, Madhav & Di Santo, Silvio Giuseppe & Itiki, Cinthia, 2023. "Method for spatiotemporal wind power generation profile under hurricanes: U.S.-Caribbean super grid proposition," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    35. Afzal, Asif & Buradi, Abdulrajak & Jilte, Ravindra & Shaik, Saboor & Kaladgi, Abdul Razak & Arıcı, Muslum & Lee, Chew Tin & Nižetić, Sandro, 2023. "Optimizing the thermal performance of solar energy devices using meta-heuristic algorithms: A critical review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 173(C).
    36. Wu, Yizhong & Lee, Chien-Chiang & Lee, Chi-Chuan & Peng, Diyun, 2022. "Geographic proximity and corporate investment efficiency: Evidence from high-speed rail construction in China," Journal of Banking & Finance, Elsevier, vol. 140(C).
    37. Sun, Chuanwang & Khan, Anwar & Liu, Yongzhe & Lei, Ni, 2022. "An analysis of the impact of fiscal and monetary policy fluctuations on the disaggregated level renewable energy generation in the G7 countries," Renewable Energy, Elsevier, vol. 189(C), pages 1154-1165.
    38. Zha, Donglan & Jiang, Pansong & Zhang, Chaoqun & Xia, Dan & Cao, Yang, 2023. "Positive synergy or negative synergy: An assessment of the carbon emission reduction effect of renewable energy policy mixes on China's power sector," Energy Policy, Elsevier, vol. 183(C).
    39. Lee, Chien-Chiang & Yan, Jingyang, 2024. "Will artificial intelligence make energy cleaner? Evidence of nonlinearity," Applied Energy, Elsevier, vol. 363(C).
    40. Sachan, Anshita & Sahu, Udit Kumar & Pradhan, Ashis Kumar & Thomas, Ronny, 2023. "Examining the drivers of renewable energy consumption: Evidence from BRICS nations," Renewable Energy, Elsevier, vol. 202(C), pages 1402-1411.
    41. Abbas, Khizar & Butt, Khalid Manzoor & Xu, Deyi & Baz, Khan & Sheraz, Muhammad & Kharl, Sanwal Hussain, 2023. "Dynamic prognostic interaction between social development and energy consumption optimization: Evidence from european union member countries," Energy, Elsevier, vol. 278(C).
    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. Zhu, Qingyuan & Xu, Chengzhen & Lee, Chien-Chiang, 2024. "Trade-induced carbon-economic inequality within China: Measurement, sources, and determinants," Energy Economics, Elsevier, vol. 136(C).

    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. Hussain, Jafar & Lee, Chien-Chiang & Hu, Danting, 2023. "Maximizing load capacity factor through a carbon-neutral environment via a simulation of carbon peak," Economic Analysis and Policy, Elsevier, vol. 79(C), pages 746-764.
    2. Lee, Chien-Chiang & Hussain, Jafar, 2023. "Energy sustainability under the COVID-19 outbreak: Electricity break-off policy to minimize electricity market crises," Energy Economics, Elsevier, vol. 125(C).
    3. Hussain, Jafar & Lee, Chien-Chiang & Chen, Yongxiu, 2022. "Optimal green technology investment and emission reduction in emissions generating companies under the support of green bond and subsidy," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    4. Lee, Chien-Chiang & Hussain, Jafar, 2022. "Carbon neutral sustainability and green development during energy consumption," Innovation and Green Development, Elsevier, vol. 1(1).
    5. Lee, Chien-Chiang & He, Zhi-Wen, 2022. "Natural resources and green economic growth: An analysis based on heterogeneous growth paths," Resources Policy, Elsevier, vol. 79(C).
    6. Lee, Chien-Chiang & Yahya, Farzan, 2024. "Mitigating energy instability: The influence of trilemma choices, financial development, and technology advancements," Energy Economics, Elsevier, vol. 133(C).
    7. Lee, Chien-Chiang & Hussain, Jafar & Chen, Yongxiu, 2022. "The optimal behavior of renewable energy resources and government's energy consumption subsidy design from the perspective of green technology implementation," Renewable Energy, Elsevier, vol. 195(C), pages 670-680.
    8. Wen, Huwei & Wen, Changyong & Lee, Chien-Chiang, 2022. "Impact of digitalization and environmental regulation on total factor productivity," Information Economics and Policy, Elsevier, vol. 61(C).
    9. Zhu, Chen & Lee, Chien-Chiang, 2022. "The effects of low-carbon pilot policy on technological innovation: Evidence from prefecture-level data in China," Technological Forecasting and Social Change, Elsevier, vol. 183(C).
    10. Yahya, Farzan & Lee, Chien-Chiang, 2023. "Disentangling the asymmetric effect of financialization on the green output gap," Energy Economics, Elsevier, vol. 125(C).
    11. Zhu, Chen & Jin, Zhuo & Lee, Chien-Chiang, 2022. "The impact of informal care from children to their elderly parents on self-employment? Evidence from China," Economic Modelling, Elsevier, vol. 117(C).
    12. Tian, Jinfang & Sun, Siyang & Cao, Wei & Bu, Di & Xue, Rui, 2024. "Make every dollar count: The impact of green credit regulation on corporate green investment efficiency," Energy Economics, Elsevier, vol. 130(C).
    13. Xu, Deyi & Abbas, Shah & Rafique, Kalsoom & Ali, Najabat, 2023. "The race to net-zero emissions: Can green technological innovation and environmental regulation be the potential pathway to net-zero emissions?," Technology in Society, Elsevier, vol. 75(C).
    14. Zhang, Weike & Luo, Qian & Liu, Shiyuan, 2022. "Is government regulation a push for corporate environmental performance? Evidence from China," Economic Analysis and Policy, Elsevier, vol. 74(C), pages 105-121.
    15. Zeng, Shihong & Li, Tengfei & Wu, Shaomin & Gao, Weijun & Li, Gen, 2024. "Does green technology progress have a significant impact on carbon dioxide emissions?," Energy Economics, Elsevier, vol. 133(C).
    16. Wen, Huwei & Zhong, Qiming & Lee, Chien-Chiang, 2022. "Digitalization, competition strategy and corporate innovation: Evidence from Chinese manufacturing listed companies," International Review of Financial Analysis, Elsevier, vol. 82(C).
    17. Tiwari, Aviral Kumar & Abakah, Emmanuel Joel Aikins & Adewuyi, Adeolu O. & Lee, Chien-Chiang, 2022. "Quantile risk spillovers between energy and agricultural commodity markets: Evidence from pre and during COVID-19 outbreak," Energy Economics, Elsevier, vol. 113(C).
    18. Xu Wang & Xu Chu & Chien-Chiang Lee, 2023. "How does anti-corruption policy affect the sensitivity of green innovation to executive incentives?," Economic Change and Restructuring, Springer, vol. 56(1), pages 79-109, February.
    19. Alsagr, Naif, 2023. "How environmental policy stringency affects renewable energy investment? Implications for green investment horizons," Utilities Policy, Elsevier, vol. 83(C).
    20. Lee, Chien-Chiang & Wang, Chang-song, 2022. "Financial development, technological innovation and energy security: Evidence from Chinese provincial experience," Energy Economics, Elsevier, vol. 112(C).

    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:energy:v:297:y:2024:i:c:s0360544224009769. 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.journals.elsevier.com/energy .

    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.