IDEAS home Printed from https://ideas.repec.org/a/eee/juipol/v69y2021ics0957178720301557.html
   My bibliography  Save this article

Service quality and the share of renewable energy in electricity generation

Author

Listed:
  • Yao, Jingyuan
  • Xiao, Erliang
  • Jian, Xianzhong
  • Shu, Lingli

Abstract

The government's policy on the proportion of renewable energy in power generation significantly affects consumers and all companies. Few studies have considered the implications for service quality. A model based on the Stackelberg-game theory is developed to obtain the optimal strategies and profits of all companies in equilibrium. Contracts are proposed to help all agents maximize their profits. We find that when the government gradually increases the proportion of renewable energy generation, and the cost of renewable energy generation decreases, the changes in profits for all companies and electricity prices are minimal.

Suggested Citation

  • Yao, Jingyuan & Xiao, Erliang & Jian, Xianzhong & Shu, Lingli, 2021. "Service quality and the share of renewable energy in electricity generation," Utilities Policy, Elsevier, vol. 69(C).
    • Handle: RePEc:eee:juipol:v:69:y:2021:i:c:s0957178720301557
    DOI: 10.1016/j.jup.2020.101164
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S0957178720301557
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.jup.2020.101164?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. Pineda, Salvador & Bock, Andreas, 2016. "Renewable-based generation expansion under a green certificate market," Renewable Energy, Elsevier, vol. 91(C), pages 53-63.
    2. Lipp, Judith, 2007. "Lessons for effective renewable electricity policy from Denmark, Germany and the United Kingdom," Energy Policy, Elsevier, vol. 35(11), pages 5481-5495, November.
    3. D’Amico, Guglielmo & Petroni, Filippo & Prattico, Flavio, 2017. "Insuring wind energy production," Physica A: Statistical Mechanics and its Applications, Elsevier, vol. 467(C), pages 542-553.
    4. Woodman, B. & Mitchell, C., 2011. "Learning from experience? The development of the Renewables Obligation in England and Wales 2002-2010," Energy Policy, Elsevier, vol. 39(7), pages 3914-3921, July.
    5. Pedro A. Neto & Terry L. Friesz & Ke Han, 2016. "Electric Power Network Oligopoly as a Dynamic Stackelberg Game," Networks and Spatial Economics, Springer, vol. 16(4), pages 1211-1241, December.
    6. Wang, Qiang & Chen, Xi, 2012. "China's electricity market-oriented reform: From an absolute to a relative monopoly," Energy Policy, Elsevier, vol. 51(C), pages 143-148.
    7. Cherni, Judith A. & Kentish, Joanna, 2007. "Renewable energy policy and electricity market reforms in China," Energy Policy, Elsevier, vol. 35(7), pages 3616-3629, July.
    8. Yu, Mengmeng & Hong, Seung Ho, 2016. "Supply–demand balancing for power management in smart grid: A Stackelberg game approach," Applied Energy, Elsevier, vol. 164(C), pages 702-710.
    9. Gitizadeh, Mohsen & Kaji, Mahdi & Aghaei, Jamshid, 2013. "Risk based multiobjective generation expansion planning considering renewable energy sources," Energy, Elsevier, vol. 50(C), pages 74-82.
    10. Midttun, Atle & Thomas, Steve, 1998. "Theoretical ambiguity and the weight of historical heritage: a comparative study of the British and Norwegian electricity liberalisation," Energy Policy, Elsevier, vol. 26(3), pages 179-197, February.
    11. Zhang, Yue-Jun & Wei, Yi-Ming, 2010. "An overview of current research on EU ETS: Evidence from its operating mechanism and economic effect," Applied Energy, Elsevier, vol. 87(6), pages 1804-1814, June.
    12. Yuyan Wang & Zhaoqing Yu & Liang Shen, 2019. "Study on the decision-making and coordination of an e-commerce supply chain with manufacturer fairness concerns," International Journal of Production Research, Taylor & Francis Journals, vol. 57(9), pages 2788-2808, May.
    13. Zhang, Lirong & Li, Yakun & Jia, Zhijie, 2018. "Impact of carbon allowance allocation on power industry in China’s carbon trading market: Computable general equilibrium based analysis," Applied Energy, Elsevier, vol. 229(C), pages 814-827.
    14. Williams, J.H. & Ghanadan, R., 2006. "Electricity reform in developing and transition countries: A reappraisal," Energy, Elsevier, vol. 31(6), pages 815-844.
    15. Maria Mansanet-Bataller & Ángel Pardo, 2008. "What You Should Know About Carbon Markets," Energies, MDPI, vol. 1(3), pages 1-34, December.
    16. Ajodhia, Virendra & Hakvoort, Rudi, 2005. "Economic regulation of quality in electricity distribution networks," Utilities Policy, Elsevier, vol. 13(3), pages 211-221, September.
    17. Gérard P. Cachon & Martin A. Lariviere, 2005. "Supply Chain Coordination with Revenue-Sharing Contracts: Strengths and Limitations," Management Science, INFORMS, vol. 51(1), pages 30-44, January.
    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. Amiri-Pebdani, Sima & Alinaghian, Mahdi & Safarzadeh, Soroush, 2022. "Time-Of-Use pricing in an energy sustainable supply chain with government interventions: A game theory approach," Energy, Elsevier, vol. 255(C).
    2. Xu, Jiuping & Yang, Guocan & Wang, Fengjuan & Shu, Kejing, 2022. "A provincial renewable portfolio standards-based distribution strategy for both power plant and user: A case study from Guangdong, China," Energy Policy, Elsevier, vol. 165(C).
    3. Li, He & Fang, Debin & Zhao, Chaoyang, 2024. "Retail competition among multi-type retail electric providers in social networks," Energy Economics, Elsevier, vol. 132(C).
    4. Amiri-Pebdani, Sima & Alinaghian, Mahdi & Khosroshahi, Hossein, 2023. "A game theoretic approach for time-of-use pricing with considering renewable portfolio standard effects and investment in energy storage technologies under government interventions," Energy, Elsevier, vol. 282(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. Polzin, Friedemann & Egli, Florian & Steffen, Bjarne & Schmidt, Tobias S., 2019. "How do policies mobilize private finance for renewable energy?—A systematic review with an investor perspective," Applied Energy, Elsevier, vol. 236(C), pages 1249-1268.
    2. Brown, Marilyn A. & Li, Yufei & Soni, Anmol, 2020. "Are all jobs created equal? Regional employment impacts of a U.S. carbon tax," Applied Energy, Elsevier, vol. 262(C).
    3. Xiang-Yu Wang & Bao-Jun Tang, 2018. "Review of comparative studies on market mechanisms for carbon emission reduction: a bibliometric analysis," Natural Hazards: Journal of the International Society for the Prevention and Mitigation of Natural Hazards, Springer;International Society for the Prevention and Mitigation of Natural Hazards, vol. 94(3), pages 1141-1162, December.
    4. Oyedepo, Sunday Olayinka, 2014. "Towards achieving energy for sustainable development in Nigeria," Renewable and Sustainable Energy Reviews, Elsevier, vol. 34(C), pages 255-272.
    5. Jiang, Kai & Yan, Xiaohe & Liu, Nian & Wang, Peng, 2022. "Energy trade-offs in coupled ICM and electricity market under dynamic carbon emission intensity," Energy, Elsevier, vol. 260(C).
    6. Li, Jinke & Liu, Guy & Shao, Jing, 2020. "Understanding the ROC transfer payment in the renewable obligation with the recycling mechanism in the United Kingdom," Energy Economics, Elsevier, vol. 87(C).
    7. Palao, Fernando & Pardo, Angel, 2012. "Assessing price clustering in European Carbon Markets," Applied Energy, Elsevier, vol. 92(C), pages 51-56.
    8. Wang, Zhaohua & Li, Hao & Deng, Nana & Cheng, Kaiwei & Lu, Bin & Zhang, Bin & Wang, Bo, 2020. "How to effectively implement an incentive-based residential electricity demand response policy? Experience from large-scale trials and matching questionnaires," Energy Policy, Elsevier, vol. 141(C).
    9. Lu, Qing & Lü, Shuaikang & Leng, Yajun, 2019. "A Nash-Stackelberg game approach in regional energy market considering users’ integrated demand response," Energy, Elsevier, vol. 175(C), pages 456-470.
    10. del Río, Pablo & Bleda, Mercedes, 2012. "Comparing the innovation effects of support schemes for renewable electricity technologies: A function of innovation approach," Energy Policy, Elsevier, vol. 50(C), pages 272-282.
    11. Erdogdu, Erkan, 2010. "Electricity Market Reform: Lessons for developing countries," MPRA Paper 27317, University Library of Munich, Germany.
    12. Verbruggen, Aviel & Lauber, Volkmar, 2012. "Assessing the performance of renewable electricity support instruments," Energy Policy, Elsevier, vol. 45(C), pages 635-644.
    13. Connor, Peter & Bürger, Veit & Beurskens, Luuk & Ericsson, Karin & Egger, Christiane, 2013. "Devising renewable heat policy: Overview of support options," Energy Policy, Elsevier, vol. 59(C), pages 3-16.
    14. Mezher, Toufic & Dawelbait, Gihan & Abbas, Zeina, 2012. "Renewable energy policy options for Abu Dhabi: Drivers and barriers," Energy Policy, Elsevier, vol. 42(C), pages 315-328.
    15. Andrianesis, Panagiotis & Biskas, Pandelis & Liberopoulos, George, 2021. "Evaluating the cost of emissions in a pool-based electricity market," Applied Energy, Elsevier, vol. 298(C).
    16. Gaffney, F. & Deane, J.P. & Gallachóir, B.P.Ó, 2017. "A 100 year review of electricity policy in Ireland (1916–2015)," Energy Policy, Elsevier, vol. 105(C), pages 67-79.
    17. Tian, Xiaoge & Chen, Weiming & Hu, Jinglu, 2023. "Game-theoretic modeling of power supply chain coordination under demand variation in China: A case study of Guangdong Province," Energy, Elsevier, vol. 262(PA).
    18. Clement Bonnet, 2014. "Revue Internationale des Politiques de Soutien aux Energies Renouvelables : les Enseignements du Danemark, de l'Allemagne et de la Chine," Post-Print hal-02971669, HAL.
    19. Schallenberg-Rodriguez, Julieta, 2017. "Renewable electricity support systems: Are feed-in systems taking the lead?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 76(C), pages 1422-1439.
    20. Wang, Yunfei & Li, Jinke & O'Leary, Nigel & Shao, Jing, 2024. "Excess demand or excess supply? A comparison of renewable energy certificate markets in the United Kingdom and Australia," Utilities Policy, Elsevier, vol. 86(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:juipol:v:69:y:2021:i:c:s0957178720301557. 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: https://www.sciencedirect.com/journal/utilities-policy .

    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.