The Study Of The Application Of CDM And TGC Mechanism In The Renewable Energy Program In China

With the increasing development of economy in China, oil shortage will be one of the most important reasons that can prevent the economy from developing. So it is very important for us to study how to push the scale development of renewable energy.According to the externalities of renewable energy, and its higher initial investment and operating cost, renewable energy have the obstacle of financing and lack the competence.To attain the sustainable development of renewable energy, the author focus on the economic mechanics to push the development of it. The two main mechanics are TGC and CDM, from which renewable energy enterprise can directly get financial support from the society instead of from the government. Also, the renewable enterprises can get the compensation for their externalities. Besides, the author analyze the experiences in applying CDM and TGC in India and some European countries, then, the author give us some useful methods on how to apply these two mechanics in our country and how to combine them to cater to the practical economic environment in China.