IDEAS home Printed from https://ideas.repec.org/a/eee/rensus/v164y2022ics136403212200435x.html
   My bibliography  Save this article

Empirical evidence based effectiveness assessment of policy regimes for wind power development in China

Author

Listed:
  • Liu, Tingting
  • Chen, Zhe
  • Xu, Jiuping

Abstract

As a renewable energy, wind power has been improving energy structures and assisting in the maintenance of strategic energy security. Based on provincial level panel data from 2000 to 2018, this paper developed models to evaluate the effects of different policies on newly installed wind power capacity and investigated the market reform influences on wind development in eight spot market pilots. It was found that on a national level, while the pricing and government guideline policies significantly promoted wind power growth, present market reforms were having an opposite effect. The results also suggested that from a resource endowment heterogeneity perspective, there was a significant difference in the wind capacity promotion policy performances. Additionally, of the eight spot market pilots, market designs had led to a significant reduction in new wind power installations in Gansu and Inner Mongolia, and no significant wind power development effects were found in the other pilots. Based on the research results, a discussion on policy use and suggestions on policy improvements are given.

Suggested Citation

  • Liu, Tingting & Chen, Zhe & Xu, Jiuping, 2022. "Empirical evidence based effectiveness assessment of policy regimes for wind power development in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 164(C).
    • Handle: RePEc:eee:rensus:v:164:y:2022:i:c:s136403212200435x
    DOI: 10.1016/j.rser.2022.112535
    as

    Download full text from publisher

    File URL: http://www.sciencedirect.com/science/article/pii/S136403212200435X
    Download Restriction: Full text for ScienceDirect subscribers only
    File URL: https://libkey.io/10.1016/j.rser.2022.112535?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. Esmaieli, M. & Ahmadian, M., 2018. "The effect of research and development incentive on wind power investment, a system dynamics approach," Renewable Energy, Elsevier, vol. 126(C), pages 765-773.
    2. Hong, Lixuan & Zhou, Nan & Fridley, David & Raczkowski, Chris, 2013. "Assessment of China's renewable energy contribution during the 12th Five Year Plan," Energy Policy, Elsevier, vol. 62(C), pages 1533-1543.
    3. Jenner, Steffen & Groba, Felix & Indvik, Joe, 2013. "Assessing the strength and effectiveness of renewable electricity feed-in tariffs in European Union countries," Energy Policy, Elsevier, vol. 52(C), pages 385-401.
    4. Bersalli, Germán & Menanteau, Philippe & El-Methni, Jonathan, 2020. "Renewable energy policy effectiveness: A panel data analysis across Europe and Latin America," Renewable and Sustainable Energy Reviews, Elsevier, vol. 133(C).
    5. Aized, Tauseef & Shahid, Muhammad & Bhatti, Amanat Ali & Saleem, Muhammad & Anandarajah, Gabrial, 2018. "Energy security and renewable energy policy analysis of Pakistan," Renewable and Sustainable Energy Reviews, Elsevier, vol. 84(C), pages 155-169.
    6. Hausman, Jerry, 2015. "Specification tests in econometrics," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 38(2), pages 112-134.
    7. Menz, Fredric C. & Vachon, Stephan, 2006. "The effectiveness of different policy regimes for promoting wind power: Experiences from the states," Energy Policy, Elsevier, vol. 34(14), pages 1786-1796, September.
    8. Song, Yan & Liu, Jun & Wei, Yuanchao & Zhang, Ming, 2021. "Study on the direct and indirect effectiveness of wind power policy: Empirical evidence from 30 provinces in China," Renewable Energy, Elsevier, vol. 170(C), pages 749-763.
    9. Shrimali, Gireesh & Srinivasan, Sandhya & Goel, Shobhit & Nelson, David, 2017. "The effectiveness of federal renewable policies in India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 70(C), pages 538-550.
    10. Linna Hou, 2015. "System Dynamics Simulation of Large-Scale Generation System for Designing Wind Power Policy in China," Discrete Dynamics in Nature and Society, Hindawi, vol. 2015, pages 1-11, June.
    11. Michael Pollitt, 2021. "Measuring the Impact of Electricity Market Reform in a Chinese Context," Working Papers EPRG2111, Energy Policy Research Group, Cambridge Judge Business School, University of Cambridge.
    12. Liu, Wenfeng & Zhang, Xingping & Feng, Sida, 2019. "Does renewable energy policy work? Evidence from a panel data analysis," Renewable Energy, Elsevier, vol. 135(C), pages 635-642.
    13. Sahu, Bikash Kumar, 2018. "Wind energy developments and policies in China: A short review," Renewable and Sustainable Energy Reviews, Elsevier, vol. 81(P1), pages 1393-1405.
    14. Michael G. Pollitt & Karim L. Anaya, 2021. "Competition in Markets for Ancillary Services? The Implications of Rising Distributed Generation," The Energy Journal, , vol. 42(1_suppl), pages 1-2, June.
    15. Shrimali, Gireesh & Kniefel, Joshua, 2011. "Are government policies effective in promoting deployment of renewable electricity resources?," Energy Policy, Elsevier, vol. 39(9), pages 4726-4741, September.
    16. Xu, Jiuping & Liu, Tingting, 2020. "Technological paradigm-based approaches towards challenges and policy shifts for sustainable wind energy development," Energy Policy, Elsevier, vol. 142(C).
    17. Stokes, Leah C., 2013. "The politics of renewable energy policies: The case of feed-in tariffs in Ontario, Canada," Energy Policy, Elsevier, vol. 56(C), pages 490-500.
    18. Alolo, Mutaka & Azevedo, Alcino & El Kalak, Izidin, 2020. "The effect of the feed-in-system policy on renewable energy investments: Evidence from the EU countries," Energy Economics, Elsevier, vol. 92(C).
    19. Djørup, Søren & Thellufsen, Jakob Zinck & Sorknæs, Peter, 2018. "The electricity market in a renewable energy system," Energy, Elsevier, vol. 162(C), pages 148-157.
    20. Liu, Xuemei, 2013. "The value of holding scarce wind resource—A cause of overinvestment in wind power capacity in China," Energy Policy, Elsevier, vol. 63(C), pages 97-100.
    21. Nicolli, Francesco & Vona, Francesco, 2016. "Heterogeneous policies, heterogeneous technologies: The case of renewable energy," Energy Economics, Elsevier, vol. 56(C), pages 190-204.
    22. Zhang, Sufang & Andrews-Speed, Philip & Zhao, Xiaoli, 2013. "Political and institutional analysis of the successes and failures of China’s wind power policy," Energy Policy, Elsevier, vol. 56(C), pages 331-340.
    23. Paul L Joskow, 2019. "Challenges for wholesale electricity markets with intermittent renewable generation at scale: the US experience," Oxford Review of Economic Policy, Oxford University Press and Oxford Review of Economic Policy Limited, vol. 35(2), pages 291-331.
    24. Xu, Xiaomin & Niu, Dongxiao & Xiao, Bowen & Guo, Xiaodan & Zhang, Lihui & Wang, Keke, 2020. "Policy analysis for grid parity of wind power generation in China," Energy Policy, Elsevier, vol. 138(C).
    25. Song, Feng & Yu, Zichao & Zhuang, Weiting & Lu, Ao, 2021. "The institutional logic of wind energy integration: What can China learn from the United States to reduce wind curtailment?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 137(C).
    26. Jeffrey M Wooldridge, 2010. "Econometric Analysis of Cross Section and Panel Data," MIT Press Books, The MIT Press, edition 2, volume 1, number 0262232588, April.
    27. Zhao, Yong & Tang, Kam Ki & Wang, Li-li, 2013. "Do renewable electricity policies promote renewable electricity generation? Evidence from panel data," Energy Policy, Elsevier, vol. 62(C), pages 887-897.
    28. Antweiler, Werner & Muesgens, Felix, 2021. "On the long-term merit order effect of renewable energies," Energy Economics, Elsevier, vol. 99(C).
    29. Kolb, Sebastian & Dillig, Marius & Plankenbühler, Thomas & Karl, Jürgen, 2020. "The impact of renewables on electricity prices in Germany - An update for the years 2014–2018," Renewable and Sustainable Energy Reviews, Elsevier, vol. 134(C).
    30. Menanteau, Philippe & Finon, Dominique & Lamy, Marie-Laure, 2003. "Prices versus quantities: choosing policies for promoting the development of renewable energy," Energy Policy, Elsevier, vol. 31(8), pages 799-812, June.
    31. Schmid, Gisèle, 2012. "The development of renewable energy power in India: Which policies have been effective?," Energy Policy, Elsevier, vol. 45(C), pages 317-326.
    32. McGreevy, Dr Michael & MacDougall, Colin & Fisher, Dr Matt & Henley, Mark & Baum, Fran, 2021. "Expediting a renewable energy transition in a privatised market via public policy: The case of south Australia 2004-18," Energy Policy, Elsevier, vol. 148(PA).
    33. Liu, Tingting & Xu, Jiuping, 2021. "Equilibrium strategy based policy shifts towards the integration of wind power in spot electricity markets: A perspective from China," Energy Policy, Elsevier, vol. 157(C).
    34. Liu, Dunnan & Liu, Mingguang & Xu, Erfeng & Pang, Bo & Guo, Xiaodan & Xiao, Bowen & Niu, Dongxiao, 2018. "Comprehensive effectiveness assessment of renewable energy generation policy: A partial equilibrium analysis in China," Energy Policy, Elsevier, vol. 115(C), pages 330-341.
    35. Park, Jaehee & Kim, Bumsuk, 2019. "An analysis of South Korea's energy transition policy with regards to offshore wind power development," Renewable and Sustainable Energy Reviews, Elsevier, vol. 109(C), pages 71-84.
    36. Wenfeng Liu & Xingping Zhang & Yinhe Bu & Sida Feng, 2021. "The Effectiveness of China’s Renewable Energy Policy: An Empirical Evaluation of Wind Power Based on the Framework of Renewable Energy Law and Its Accompanying Policies," Emerging Markets Finance and Trade, Taylor & Francis Journals, vol. 57(3), pages 757-772, February.
    37. He, Gang & Kammen, Daniel M., 2014. "Where, when and how much wind is available? A provincial-scale wind resource assessment for China," Energy Policy, Elsevier, vol. 74(C), pages 116-122.
    38. Schuman, Sara & Lin, Alvin, 2012. "China's Renewable Energy Law and its impact on renewable power in China: Progress, challenges and recommendations for improving implementation," Energy Policy, Elsevier, vol. 51(C), pages 89-109.
    39. Li, Shin-Je & Chang, Ting-Huan & Chang, Ssu-Li, 2017. "The policy effectiveness of economic instruments for the photovoltaic and wind power development in the European Union," Renewable Energy, Elsevier, vol. 101(C), pages 660-666.
    40. Wei, Youzhou & Zou, Qing-Ping & Lin, Xianghong, 2021. "Evolution of price policy for offshore wind energy in China: Trilemma of capacity, price and subsidy," Renewable and Sustainable Energy Reviews, Elsevier, vol. 136(C).
    41. Grover, David & Daniels, Benjamin, 2017. "Social equity issues in the distribution of feed-in tariff policy benefits: A cross sectional analysis from England and Wales using spatial census and policy data," Energy Policy, Elsevier, vol. 106(C), pages 255-265.
    42. Shen, Xingchi & Lyu, Shoujun, 2019. "Wind power development, government regulation structure, and vested interest groups: Analysis based on panel data of Province of China," Energy Policy, Elsevier, vol. 128(C), pages 487-494.
    43. Saed Alizamir & Francis de Véricourt & Peng Sun, 2016. "Efficient Feed-In-Tariff Policies for Renewable Energy Technologies," Operations Research, INFORMS, vol. 64(1), pages 52-66, February.
    44. Wang, Xiaozhen & Zou, Honghui, 2018. "Study on the effect of wind power industry policy types on the innovation performance of different ownership enterprises: Evidence from China," Energy Policy, Elsevier, vol. 122(C), pages 241-252.
    45. Lin, Boqiang & Chen, Yufang, 2019. "Impacts of policies on innovation in wind power technologies in China," Applied Energy, Elsevier, vol. 247(C), pages 682-691.
    46. Xia, Fang & Lu, Xi & Song, Feng, 2020. "The role of feed-in tariff in the curtailment of wind power in China," Energy Economics, Elsevier, vol. 86(C).
    47. Argentiero, Amedeo & Bollino, Carlo Andrea & Micheli, Silvia & Zopounidis, Constantin, 2018. "Renewable energy sources policies in a Bayesian DSGE model," Renewable Energy, Elsevier, vol. 120(C), pages 60-68.
    48. Christoph Hanck, 2011. "Joshua D. Angrist and Jörn-Steffen Pischke (2009): Mostly Harmless Econometrics: An Empiricist’s Companion," Statistical Papers, Springer, vol. 52(2), pages 503-504, May.
    49. Lin, Jiang & Kahrl, Fredrich & Yuan, Jiahai & Chen, Qixin & Liu, Xu, 2019. "Economic and carbon emission impacts of electricity market transition in China: A case study of Guangdong Province," Applied Energy, Elsevier, vol. 238(C), pages 1093-1107.
    50. Guo, Yue & Ru, Peng & Su, Jun & Anadon, Laura Diaz, 2015. "Not in my backyard, but not far away from me: Local acceptance of wind power in China," Energy, Elsevier, vol. 82(C), pages 722-733.
    51. Panse, Riddhi & Kathuria, Vinish, 2016. "Role of policy in deployment of wind energy: evidence across states of India," Renewable and Sustainable Energy Reviews, Elsevier, vol. 53(C), pages 422-432.
    52. Li, Shaomao & Park, Chan S., 2018. "Wind power bidding strategy in the short-term electricity market," Energy Economics, Elsevier, vol. 75(C), pages 336-344.
    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. 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. Liu, Jinpeng & Lin, Yingwen & Jiang, Mingyue & Guo, Xia, 2024. "Exploring policy support for wind power development from a balancing perspective - A study of dynamic strategies based on evolutionary game," Energy Policy, Elsevier, vol. 188(C).
    3. Chai, Song & Liu, Qiyun & Yang, Jin, 2023. "Renewable power generation policies in China: Policy instrument choices and influencing factors from the central and local government perspectives," Renewable and Sustainable Energy Reviews, Elsevier, vol. 174(C).
    4. Xu, Bin, 2023. "Exploring the sustainable growth pathway of wind power in China: Using the semiparametric regression model," Energy Policy, Elsevier, vol. 183(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. Guillaume Bourgeois & Sandrine Mathy & Philippe Menanteau, 2017. "The effect of climate policies on renewable energies : a review of econometric studies [L’effet des politiques climatiques sur les énergies renouvelables : une revue des études économétriques]," Post-Print hal-01585906, HAL.
    2. Dania Ortiz & Vítor Leal, 2020. "Energy Policy Concerns, Objectives and Indicators: A Review towards a Framework for Effectiveness Assessment," Energies, MDPI, vol. 13(24), pages 1-26, December.
    3. 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.
    4. Justyna Godawska & Joanna Wyrobek, 2021. "The Impact of Environmental Policy Stringency on Renewable Energy Production in the Visegrad Group Countries," Energies, MDPI, vol. 14(19), pages 1-23, September.
    5. Chen, Hao & Chen, Jiachuan & Han, Guoyi & Cui, Qi, 2022. "Winding down the wind power curtailment in China: What made the difference?," Renewable and Sustainable Energy Reviews, Elsevier, vol. 167(C).
    6. 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).
    7. Marques, António Cardoso & Fuinhas, José Alberto & Pereira, Diogo Santos, 2019. "The dynamics of the short and long-run effects of public policies supporting renewable energy: A comparative study of installed capacity and electricity generation," Economic Analysis and Policy, Elsevier, vol. 63(C), pages 188-206.
    8. Thapar, Sapan & Sharma, Seema & Verma, Ashu, 2018. "Key determinants of wind energy growth in India: Analysis of policy and non-policy factors," Energy Policy, Elsevier, vol. 122(C), pages 622-638.
    9. Consolación Quintana-Rojo & Fernando-Evaristo Callejas-Albiñana & Miguel-Ángel Tarancón & Isabel Martínez-Rodríguez, 2020. "Econometric Studies on the Development of Renewable Energy Sources to Support the European Union 2020–2030 Climate and Energy Framework: A Critical Appraisal," Sustainability, MDPI, vol. 12(12), pages 1-26, June.
    10. Zhao, Xiaoli & Li, Shujie & Zhang, Sufang & Yang, Rui & Liu, Suwei, 2016. "The effectiveness of China's wind power policy: An empirical analysis," Energy Policy, Elsevier, vol. 95(C), pages 269-279.
    11. Che, Xiao-Jing & Zhou, P. & Chai, Kah-Hin, 2022. "Regional policy effect on photovoltaic (PV) technology innovation: Findings from 260 cities in China," Energy Policy, Elsevier, vol. 162(C).
    12. Qiao, Qiao & Zeng, Xianhai & Lin, Boqiang, 2024. "Mitigating wind curtailment risk in China: The impact of subsidy reduction policy," Applied Energy, Elsevier, vol. 368(C).
    13. Hille, Erik & Oelker, Thomas J., 2023. "International expansion of renewable energy capacities: The role of innovation and choice of policy instruments," Ecological Economics, Elsevier, vol. 204(PA).
    14. Hu, Xing & Guo, Yingying & Zheng, Yali & Liu, Lan-cui & Yu, Shiwei, 2022. "Which types of policies better promote the development of renewable energy? Evidence from China's provincial data," Renewable Energy, Elsevier, vol. 198(C), pages 1373-1382.
    15. Che, Xiao-Jing & Zhou, P. & Wang, M., 2022. "The policy effect on photovoltaic technology innovation with regional heterogeneity in China," Energy Economics, Elsevier, vol. 115(C).
    16. Kersey, Jessica & Blechinger, Philipp & Shirley, Rebekah, 2021. "A panel data analysis of policy effectiveness for renewable energy expansion on Caribbean islands," Energy Policy, Elsevier, vol. 155(C).
    17. Nicolini, Marcella & Tavoni, Massimo, 2017. "Are renewable energy subsidies effective? Evidence from Europe," Renewable and Sustainable Energy Reviews, Elsevier, vol. 74(C), pages 412-423.
    18. Barnea, Gil & Hagemann, Christian & Wurster, Stefan, 2022. "Policy instruments matter: Support schemes for renewable energy capacity in worldwide comparison," Energy Policy, Elsevier, vol. 168(C).
    19. Hu, Xing & Yu, Shiwei & Fang, Xu & Ovaere, Marten, 2023. "Which combinations of renewable energy policies work better? Insights from policy text synergies in China," Energy Economics, Elsevier, vol. 127(PA).
    20. Farah Roslan & Ștefan Cristian Gherghina & Jumadil Saputra & Mário Nuno Mata & Farah Diana Mohmad Zali & José Moleiro Martins, 2022. "A Panel Data Approach towards the Effectiveness of Energy Policies in Fostering the Implementation of Solar Photovoltaic Technology: Empirical Evidence for Asia-Pacific," Energies, MDPI, vol. 15(10), pages 1-22, May.

    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:rensus:v:164:y:2022:i:c:s136403212200435x. 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/wps/find/journaldescription.cws_home/600126/description#description .

    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.