IDEAS home Printed from https://ideas.repec.org/a/gam/jeners/v15y2022i11p3949-d825309.html
   My bibliography  Save this article

Is the Renewable Portfolio Standard in China Effective? Research on RPS Allocation Efficiency in Chinese Provinces Based on the Zero-Sum DEA Model

Author

Listed:
  • Shangjia Wang

    (College of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, China)

  • Wenhui Zhao

    (College of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, China)

  • Shuwen Fan

    (College of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, China)

  • Lei Xue

    (State Grid Shanxi Economic Research Institute, Taiyuan 030021, China)

  • Zijuan Huang

    (Shanghai Envision Digital Technology Co., Ltd., Shanghai 200011, China)

  • Zhigang Liu

    (Beijing Bojin Hengxin Technology Consulting Company, Beijing 100080, China)

Abstract

As one of the countries with the most rapid development of new energy, China has been committed to exploring countermeasures to the challenges of new energy consumption. After more than ten years of consideration and consultation, the “renewable portfolio standard“(RPS) for “renewable energy power consumption responsibility weighting” has landed in China. However, in the official affirmation issued by the National Energy Administration, theoretical support for the basis of the initial quota allocation is still lacking. In this study, we examine the efficiency of the weight allocation scheme for renewable energy power consumption responsibilities, which was announced by the National Energy Administration in 2018 and which is based on the BCC-DEA efficiency model. The results indicate that most provinces have low allocation efficiency under this allocation scheme. Therefore, we propose an optimal allocation scheme for a renewable energy consumption quota, based on the ZSG-DEA model. With the achievement of its target, this study’s allocation scheme would ensure 100% efficiency in all provinces, improve provincial economic efficiency, and simultaneously bring economic growth. After analyzing the fairness before and after adjustment of the RPS, our findings suggest that the adjusted RPS allocation scheme can promote equity in per capita renewable electricity consumption.

Suggested Citation

  • Shangjia Wang & Wenhui Zhao & Shuwen Fan & Lei Xue & Zijuan Huang & Zhigang Liu, 2022. "Is the Renewable Portfolio Standard in China Effective? Research on RPS Allocation Efficiency in Chinese Provinces Based on the Zero-Sum DEA Model," Energies, MDPI, vol. 15(11), pages 1-18, May.
    • Handle: RePEc:gam:jeners:v:15:y:2022:i:11:p:3949-:d:825309
    as

    Download full text from publisher

    File URL: https://www.mdpi.com/1996-1073/15/11/3949/pdf
    Download Restriction: no
    File URL: https://www.mdpi.com/1996-1073/15/11/3949/
    Download Restriction: no
    ---><---

    References listed on IDEAS

    as
    1. Zhiqi Chen, 2020. "Symposium on the Economic Impact of the COVID-19 Pandemic: An Introduction," Frontiers of Economics in China-Selected Publications from Chinese Universities, Higher Education Press, vol. 15(4), pages 475-477, December.
    2. 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).
    3. Ying, Zhou & Xin-gang, Zhao & Xue-feng, Jia & Zhen, Wang, 2021. "Can the Renewable Portfolio Standards improve social welfare in China's electricity market？," Energy Policy, Elsevier, vol. 152(C).
    4. Changlin Zhou & Lang Zhou & Fei Liu & Weihua Chen & Qian Wang & Keliang Liang & Wenqiu Guo & Liying Zhou & M. Irfan Uddin, 2021. "A Novel Stacking Heterogeneous Ensemble Model with Hybrid Wrapper-Based Feature Selection for Reservoir Productivity Predictions," Complexity, Hindawi, vol. 2021, pages 1-12, January.
    5. Thanasis Bouzidis & Giannis Karagiannis, 2022. "A note on the zero-sum gains data envelopment analysis model," Operational Research, Springer, vol. 22(3), pages 1737-1758, July.
    6. Xin-gang, Zhao & Pei-ling, Li & Ying, Zhou, 2020. "Which policy can promote renewable energy to achieve grid parity? Feed-in tariff vs. renewable portfolio standards," Renewable Energy, Elsevier, vol. 162(C), pages 322-333.
    7. 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.
    8. Zhang, Qi & Wang, Ge & Li, Yan & Li, Hailong & McLellan, Benjamin & Chen, Siyuan, 2018. "Substitution effect of renewable portfolio standards and renewable energy certificate trading for feed-in tariff," Applied Energy, Elsevier, vol. 227(C), pages 426-435.
    9. Anthony Oliver & Madhu Khanna, 2018. "The spatial distribution of welfare costs of Renewable Portfolio Standards in the United States electricity sector," Letters in Spatial and Resource Sciences, Springer, vol. 11(3), pages 269-287, October.
    10. Zhao, Zhen-Yu & Chen, Yu-Long & Chang, Rui-Dong, 2016. "How to stimulate renewable energy power generation effectively? – China's incentive approaches and lessons," Renewable Energy, Elsevier, vol. 92(C), pages 147-156.
    11. Xu, Jie & Lv, Tao & Hou, Xiaoran & Deng, Xu & Liu, Feng, 2021. "Provincial allocation of renewable portfolio standard in China based on efficiency and fairness principles," Renewable Energy, Elsevier, vol. 179(C), pages 1233-1245.
    12. Choi, Gobong & Huh, Sung-Yoon & Heo, Eunnyeong & Lee, Chul-Yong, 2018. "Prices versus quantities: Comparing economic efficiency of feed-in tariff and renewable portfolio standard in promoting renewable electricity generation," Energy Policy, Elsevier, vol. 113(C), pages 239-248.
    13. Dongmin Son & Joonrak Kim & Bongju Jeong, 2019. "Optimal Operational Strategy for Power Producers in Korea Considering Renewable Portfolio Standards and Emissions Trading Schemes," Energies, MDPI, vol. 12(9), pages 1-24, May.
    14. Fang, Debin & Zhao, Chaoyang & Kleit, Andrew N., 2019. "The impact of the under enforcement of RPS in China: An evolutionary approach," Energy Policy, Elsevier, vol. 135(C).
    15. Jamal Mamkhezri & Leonard A. Malczynski & Janie M. Chermak, 2021. "Assessing the Economic and Environmental Impacts of Alternative Renewable Portfolio Standards: Winners and Losers," Energies, MDPI, vol. 14(11), pages 1-23, June.
    16. Zhao, Wenhui & Zhang, Jiuyang & Li, Ruan & Zha, Ruiming, 2021. "A transaction case analysis of the development of generation rights trading and existing shortages in China," Energy Policy, Elsevier, vol. 149(C).
    17. Lins, Marcos P. Estellita & Gomes, Eliane G. & Soares de Mello, Joao Carlos C. B. & Soares de Mello, Adelino Jose R., 2003. "Olympic ranking based on a zero sum gains DEA model," European Journal of Operational Research, Elsevier, vol. 148(2), pages 312-322, July.
    18. Johnson, Erik Paul, 2014. "The cost of carbon dioxide abatement from state renewable portfolio standards," Resource and Energy Economics, Elsevier, vol. 36(2), pages 332-350.
    19. Pang, Jun & Timilsina, Govinda, 2021. "How would an emissions trading scheme affect provincial economies in China: Insights from a computable general equilibrium model," Renewable and Sustainable Energy Reviews, Elsevier, vol. 145(C).
    20. Ying, Zhou & Xin-gang, Zhao & Zhen, Wang, 2020. "Demand side incentive under renewable portfolio standards: A system dynamics analysis," Energy Policy, Elsevier, vol. 144(C).
    21. Fugui Dong & Lei Shi & Xiaohui Ding & Yuan Li & Yongpeng Shi, 2019. "Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard," Energies, MDPI, vol. 12(11), pages 1-23, June.
    22. Sun, Peng & Nie, Pu-yan, 2015. "A comparative study of feed-in tariff and renewable portfolio standard policy in renewable energy industry," Renewable Energy, Elsevier, vol. 74(C), pages 255-262.
    23. Li, Canbing & Shi, Haiqing & Cao, Yijia & Wang, Jianhui & Kuang, Yonghong & Tan, Yi & Wei, Jing, 2015. "Comprehensive review of renewable energy curtailment and avoidance: A specific example in China," Renewable and Sustainable Energy Reviews, Elsevier, vol. 41(C), pages 1067-1079.
    24. Wang, Juan & Zhang, Sulan & Zhang, Qingjun, 2021. "The relationship of renewable energy consumption to financial development and economic growth in China," Renewable Energy, Elsevier, vol. 170(C), pages 897-904.
    25. Xin-gang, Zhao & Zhen, Wei, 2019. "The technical efficiency of China's wind power list enterprises: An estimation based on DEA method and micro-data," Renewable Energy, Elsevier, vol. 133(C), pages 470-479.
    26. Yuan Liu & Qinliang Tan & Jian Han & Mingxin Guo, 2021. "Energy-Water-Carbon Nexus Optimization for the Path of Achieving Carbon Emission Peak in China Considering Multiple Uncertainties: A Case Study in Inner Mongolia," Energies, MDPI, vol. 14(4), pages 1-21, February.
    27. Xin-gang, Zhao & Ling, Wu & Ying, Zhou, 2020. "How to achieve incentive regulation under renewable portfolio standards and carbon tax policy? A China's power market perspective," Energy Policy, Elsevier, vol. 143(C).
    28. Fan, Jing-Li & Wang, Jia-Xing & Hu, Jia-Wei & Wang, Yu & Zhang, Xian, 2019. "Optimization of China’s provincial renewable energy installation plan for the 13th five-year plan based on renewable portfolio standards," Applied Energy, Elsevier, vol. 254(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. Yang Tang & Yifeng Liu & Weiqiang Huo & Meng Chen & Shilong Ye & Lei Cheng, 2023. "Optimal Allocation Scheme of Renewable Energy Consumption Responsibility Weight under Renewable Portfolio Standards: An Integrated Evolutionary Game and Stochastic Optimization Approach," Energies, MDPI, vol. 16(7), pages 1-22, March.

    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. Fan, Jing-Li & Wang, Jia-Xing & Hu, Jia-Wei & Yang, Yang & Wang, Yu, 2021. "Will China achieve its renewable portfolio standard targets? An analysis from the perspective of supply and demand," Renewable and Sustainable Energy Reviews, Elsevier, vol. 138(C).
    2. Wang, Delu & Li, Chunxiao & Mao, Jinqi & Yang, Qing, 2023. "What affects the implementation of the renewable portfolio standard? An analysis of the four-party evolutionary game," Renewable Energy, Elsevier, vol. 204(C), pages 250-261.
    3. Yang Tang & Yifeng Liu & Weiqiang Huo & Meng Chen & Shilong Ye & Lei Cheng, 2023. "Optimal Allocation Scheme of Renewable Energy Consumption Responsibility Weight under Renewable Portfolio Standards: An Integrated Evolutionary Game and Stochastic Optimization Approach," Energies, MDPI, vol. 16(7), pages 1-22, March.
    4. Amiri-Pebdani, Sima & Alinaghian, Mahdi & Khosroshahi, Hossein, 2023. "Pricing in competitive energy supply chains considering government interventions to support CCS under cap-and-trade regulations: A game-theoretic approach," Energy Policy, Elsevier, vol. 179(C).
    5. Teng, Minmin & Lv, Kunfeng & Han, Chuanfeng & Liu, Pihui, 2023. "Trading behavior strategy of power plants and the grid under renewable portfolio standards in China: A tripartite evolutionary game analysis," Energy, Elsevier, vol. 284(C).
    6. Chunning Na & Can Jin & Huan Pan & Lixia Ding, 2022. "Green Power Trade Behavior in China’s Renewable Portfolio Standard: An Evolutionary Game-Based System Dynamics Approach," Sustainability, MDPI, vol. 14(9), pages 1-12, April.
    7. Yu, Xianyu & Ge, Shengxian & Zhou, Dequn & Wang, Qunwei & Chang, Ching-Ter & Sang, Xiuzhi, 2022. "Whether feed-in tariff can be effectively replaced or not? An integrated analysis of renewable portfolio standards and green certificate trading," Energy, Elsevier, vol. 245(C).
    8. Libo Zhang & Qian Du & Dequn Zhou, 2021. "Grid Parity Analysis of China’s Centralized Photovoltaic Generation under Multiple Uncertainties," Energies, MDPI, vol. 14(7), pages 1-19, March.
    9. Lin, Boqiang & Li, Minyang, 2022. "Understanding the investment of renewable energy firms in the face of economic policy uncertainty – Micro-evidence from listed companies in China," China Economic Review, Elsevier, vol. 75(C).
    10. Fugui Dong & Lei Shi & Xiaohui Ding & Yuan Li & Yongpeng Shi, 2019. "Study on China’s Renewable Energy Policy Reform and Improved Design of Renewable Portfolio Standard," Energies, MDPI, vol. 12(11), pages 1-23, June.
    11. Ying, Zhou & Xin-gang, Zhao & Xue-feng, Jia & Zhen, Wang, 2021. "Can the Renewable Portfolio Standards improve social welfare in China's electricity market？," Energy Policy, Elsevier, vol. 152(C).
    12. Wang, Ge & Zhang, Qi & Li, Yan & Mclellan, Benjamin C. & Pan, Xunzhang, 2019. "Corrective regulations on renewable energy certificates trading: Pursuing an equity-efficiency trade-off," Energy Economics, Elsevier, vol. 80(C), pages 970-982.
    13. Zhou, Shan & Solomon, Barry D., 2020. "Do renewable portfolio standards in the United States stunt renewable electricity development beyond mandatory targets?," Energy Policy, Elsevier, vol. 140(C).
    14. 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).
    15. Dong, Zhuojia & Yu, Xianyu & Chang, Ching-Ter & Zhou, Dequn & Sang, Xiuzhi, 2022. "How does feed-in tariff and renewable portfolio standard evolve synergistically? An integrated approach of tripartite evolutionary game and system dynamics," Renewable Energy, Elsevier, vol. 186(C), pages 864-877.
    16. Zeng, Lijun & Wang, Jiafeng & Zhao, Laijun, 2022. "An inter-provincial tradable green certificate futures trading model under renewable portfolio standard policy," Energy, Elsevier, vol. 257(C).
    17. Bangjun, Wang & Feng, Zhaolei & Feng, Ji & Yu, Pan & Cui, Linyu, 2022. "Decision making on investments in photovoltaic power generation projects based on renewable portfolio standard: Perspective of real option," Renewable Energy, Elsevier, vol. 189(C), pages 1033-1045.
    18. Liu, Da & Jiang, Yan & Peng, Chuan & Jian, Jianhui & Zheng, Jing, 2024. "Can green certificates substitute for renewable electricity subsidies? A Chinese experience," Renewable Energy, Elsevier, vol. 222(C).
    19. Zhang, Xian & Wang, Jia-Xing & Cao, Zhe & Shen, Shuo & Meng, Shuo & Fan, Jing-Li, 2021. "What is driving the remarkable decline of wind and solar power curtailment in China? Evidence from China and four typical provinces," Renewable Energy, Elsevier, vol. 174(C), pages 31-42.
    20. Ying, Zhou & Xin-gang, Zhao & Zhen, Wang, 2020. "Demand side incentive under renewable portfolio standards: A system dynamics analysis," Energy Policy, Elsevier, vol. 144(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:gam:jeners:v:15:y:2022:i:11:p:3949-:d:825309. 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: MDPI Indexing Manager (email available below). General contact details of provider: https://www.mdpi.com .

    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.