Influencing Factors And Policy Effectiveness Evaluation Of Renewable Energy Generation

With the increasingly serious environmental issue, renewable energy generation plays a more and more important role in China’s electric power structure. China12th five year plan for Renewable energy has established ambitious targets for renewable energy generation. However, the achievement of these challenging targets requires improving relevant regimes from many aspects. China has promulgated a series of policies to stimulate renewable energy generation. Evaluating policy effectiveness and identifying barriers in the relevant regimes can further promote renewable energy generation development and provide practical basis for the formulation of policies.This paper analyzes the current situation of China’s renewable energy generation and the influencing factors divided into non-policy factors and policy factors. The study finds barriers of the non-policy factors in the natural, economic, demand, technological and social aspects can be effectively eliminated by policies with the regulatory measures to some extent. Due to the important role of policies, this paper established provincial panel data model to evaluate policy effectiveness. And with the consideration of policy effectiveness differences in various resource areas, these differences are reflected by introducing cross-term of policy variables and resources variables. Based on the established models, this paper conducts empirical analysis of effectiveness of price and non-price regulatory policy on China’s wind power development. The results show these two policies have significant effects on wind power development, and price regulatory policy has a more significant effectiveness. In addition, the results with the consideration of the resource differences demonstrate that, policy effectiveness is different in various resource areas, which means price regulatory policy’s effectiveness in non-rich wind area are more significant, and the result for non-price regulatory policy is opposite; and these two policy also have different effectiveness for one resource area, which means the non-price regulatory policy has more significant effectiveness in wind rich area, and result for non-rich wind area is opposite. Therefore, it is necessary to formulate flexible and refined policies according to local conditions. Finally, to further improve renewable energy generation, this paper explores current institutional barriers in terms of subsidies and tax, feed-in tariff, electricity trading, incentives to stakeholders and overall planning, and then provides the corresponding countermeasures and suggestions.