The Effects of Energy Policies on Stimulating Clean Electricity Production of Individual Suppliers

Abstract

This research addresses the effect of 6 different types of energy policies to individual suppliers in realistic electricity production. To evaluate the profits of different suppliers under certain policy combinations, models are developed on a 2-period 2-department economy. Empirical study on Guangdong Province, China shows that policies do promote usage of RES-E, but should be adjusted to stimulate fossil departments implementing researches on decarbonization. This research provides a micro perspective of how individuals would react to energy policies and how should government set policy combinations that would bring the biggest stimulation to market participants to adopt cleaner production path.