A Comparative Study of Renewable Energy Industry Regulation on Feed-In Tariffs Based on Pricing Strategy of Value Standard Method
Based on pricing strategy of value standard method, we establish a three-stage game model of energy production to compare the differences of optimal regulated price and social welfare under three regulation types of feed-in tariffs. We show that the optimal price levels under three main regulation t...
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| Format: | Article |
| Language: | English |
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Wiley
2013-01-01
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| Series: | Journal of Applied Mathematics |
| Online Access: | http://dx.doi.org/10.1155/2013/368296 |
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| _version_ | 1832552939668897792 |
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| author | Peng Sun |
| author_facet | Peng Sun |
| author_sort | Peng Sun |
| collection | DOAJ |
| description | Based on pricing strategy of value standard method, we establish a three-stage game model of energy production to compare the differences of optimal regulated price and social welfare under three regulation types of feed-in tariffs. We show that the optimal price levels under three main regulation types are different. But the choice of regulation type does not impact the optimal social welfare. So policymakers with different preferences may make regulation decisions in different ways. This successfully explains why many regulation types exist in different countries. Moreover, although it is difficult to determine the optimal price by the value standard method in practice, the conclusions of this paper also provide a judgment criterion for other pricing strategies on how to choose a suboptimal regulation type. |
| format | Article |
| id | doaj-art-b8c7633fad1f4241906d176f3bf7cab1 |
| institution | Kabale University |
| issn | 1110-757X 1687-0042 |
| language | English |
| publishDate | 2013-01-01 |
| publisher | Wiley |
| record_format | Article |
| series | Journal of Applied Mathematics |
| spelling | doaj-art-b8c7633fad1f4241906d176f3bf7cab12025-02-03T05:57:32ZengWileyJournal of Applied Mathematics1110-757X1687-00422013-01-01201310.1155/2013/368296368296A Comparative Study of Renewable Energy Industry Regulation on Feed-In Tariffs Based on Pricing Strategy of Value Standard MethodPeng Sun0Institute of Industrial Economics, Jinan University, Guangzhou 510632, ChinaBased on pricing strategy of value standard method, we establish a three-stage game model of energy production to compare the differences of optimal regulated price and social welfare under three regulation types of feed-in tariffs. We show that the optimal price levels under three main regulation types are different. But the choice of regulation type does not impact the optimal social welfare. So policymakers with different preferences may make regulation decisions in different ways. This successfully explains why many regulation types exist in different countries. Moreover, although it is difficult to determine the optimal price by the value standard method in practice, the conclusions of this paper also provide a judgment criterion for other pricing strategies on how to choose a suboptimal regulation type.http://dx.doi.org/10.1155/2013/368296 |
| spellingShingle | Peng Sun A Comparative Study of Renewable Energy Industry Regulation on Feed-In Tariffs Based on Pricing Strategy of Value Standard Method Journal of Applied Mathematics |
| title | A Comparative Study of Renewable Energy Industry Regulation on Feed-In Tariffs Based on Pricing Strategy of Value Standard Method |
| title_full | A Comparative Study of Renewable Energy Industry Regulation on Feed-In Tariffs Based on Pricing Strategy of Value Standard Method |
| title_fullStr | A Comparative Study of Renewable Energy Industry Regulation on Feed-In Tariffs Based on Pricing Strategy of Value Standard Method |
| title_full_unstemmed | A Comparative Study of Renewable Energy Industry Regulation on Feed-In Tariffs Based on Pricing Strategy of Value Standard Method |
| title_short | A Comparative Study of Renewable Energy Industry Regulation on Feed-In Tariffs Based on Pricing Strategy of Value Standard Method |
| title_sort | comparative study of renewable energy industry regulation on feed in tariffs based on pricing strategy of value standard method |
| url | http://dx.doi.org/10.1155/2013/368296 |
| work_keys_str_mv | AT pengsun acomparativestudyofrenewableenergyindustryregulationonfeedintariffsbasedonpricingstrategyofvaluestandardmethod AT pengsun comparativestudyofrenewableenergyindustryregulationonfeedintariffsbasedonpricingstrategyofvaluestandardmethod |