Optimal policy design for photovoltaic power industry with positive externality in China

doi:10.1016/j.resconrec.2016.08.029

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	Optimal policy design for photovoltaic power industry with positive externality in China
	Wu, Tian1,2,3 ; Zhou, Wei 4; Yan, Xiaoyu 5; Ou, Xunmin 6
刊名	RESOURCES CONSERVATION AND RECYCLING
	2016-12-01
卷号	115 页码:22-30
关键词	Photovoltaic power industry Investment model Positive externality China
ISSN号	0921-3449
DOI	10.1016/j.resconrec.2016.08.029
英文摘要	China's photovoltaic power (PV) power industry currently faces a challenge in excessive production capacity. The aim of this study is to determine how the Chinese government should regulate this industry with positive externalities in order to achieve equilibrium and maximize social welfare in a market economy. This paper formulates an investment model in corporate government theory that includes government, bank systems, and private-and state-owned enterprises. Using the model developed, the relationships between the government's preferred investment strategy and its budget constraints, and the related tax rate or subsidy level are analyzed in the context of China's PV power sector. Main findings of this study are as follows: Firstly, both types of enterprises can achieve optimal social investment if the budget constraints are not excessively binding as the government will have sufficient financial resources to subsidize both types regardless of how funds are obtained. Secondly, state-owned enterprises will choose a higher investment level when government budget constraints are binding because the government lacks money. Thirdly, if the tax rate is so low that the government cannot raise adequate tax to ensure production, raising funds from profits is a better choice. Due to the fact that the positive externality and incremental cost of the PV power technology compared to the local grid's mainstream power technology Vary spatially and temporally, which type of enterprises is favored depends on the local real-time situation. This paper also finds that assigning PV power production to a state-owned enterprise is always the favored strategy in areas where the solar resource is not abundant and the PV sector is in its early stage, which helps to accomplish strong positive externality as early as possible in a few years. In areas where solar resource is abundant, private enterprises are supported to develop PV power. Furthermore, as the incremental cost of PV over conventional power to grid decreases with China's grid electricity becoming cleaner and more expensive, subsidy to PV power sector should be decreased and a wider range of private enterprises should be encouraged to make investment in this industry. (C) 2016 Elsevier B.V. All rights reserved.
资助项目	National Natural Science Foundation of China[71203119] ; National Natural Science Foundation of China[71373142] ; National Natural Science Foundation of China[71673165]
WOS研究方向	Engineering ; Environmental Sciences & Ecology
语种	英语
出版者	ELSEVIER SCIENCE BV
WOS记录号	WOS:000384852500003
内容类型	期刊论文
源URL	[http://ir.amss.ac.cn/handle/2S8OKBNM/23955]
专题	国家数学与交叉科学中心
通讯作者	Ou, Xunmin
作者单位	1.Chinese Acad Sci, Acad Math & Syst Sci, Beijing 100190, Peoples R China 2.Univ Chinese Acad Sci, Sch Econ & Management, Beijing 100190, Peoples R China 3.Chinese Acad Sci, Key Lab Big Data Min & Knowledge Management, Beijing 100190, Peoples R China 4.Renmin Univ China, Sch Econ, Beijing 100872, Peoples R China 5.Univ Exeter Penryn Campus, Environm & Sustainabil Inst, Penryn TR10 9FE, Cornwall, England 6.Tsinghua Univ, Inst Energy Environm & Econ, Beijing 100084, Peoples R China
推荐引用方式 GB/T 7714	Wu, Tian,Zhou, Wei,Yan, Xiaoyu,et al. Optimal policy design for photovoltaic power industry with positive externality in China[J]. RESOURCES CONSERVATION AND RECYCLING,2016,115:22-30.
APA	Wu, Tian,Zhou, Wei,Yan, Xiaoyu,&Ou, Xunmin.(2016).Optimal policy design for photovoltaic power industry with positive externality in China.RESOURCES CONSERVATION AND RECYCLING,115,22-30.
MLA	Wu, Tian,et al."Optimal policy design for photovoltaic power industry with positive externality in China".RESOURCES CONSERVATION AND RECYCLING 115(2016):22-30.