What Is the Effect of China’s Renewable Energy Market-Based Coupling Policy?—A System Dynamics Analysis Based on the Coupling of Electricity Market, Green Certificate Market and Carbon Market
In the context of China’s electricity market reform, green certificate trading and carbon trading, as important policy tools to promote the development of renewable energy and energy conservation and emission reduction in the power industry, will inevitably be coupled with the electricity market. In...
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| Format: | Article |
| Language: | English |
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MDPI AG
2024-12-01
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| Series: | Systems |
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| Online Access: | https://www.mdpi.com/2079-8954/12/12/545 |
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| author | Wenhui Zhao Yanghui Lin Hua Pan |
| author_facet | Wenhui Zhao Yanghui Lin Hua Pan |
| author_sort | Wenhui Zhao |
| collection | DOAJ |
| description | In the context of China’s electricity market reform, green certificate trading and carbon trading, as important policy tools to promote the development of renewable energy and energy conservation and emission reduction in the power industry, will inevitably be coupled with the electricity market. In order to study whether the coupled market can successfully achieve the goals of power supply structure adjustment and carbon emission reduction, this paper establishes a system dynamics (SD) model, analyzes the correlation and coordination mechanism among the green certificate market (TGC), carbon market (ET) and electricity market, including generation right trading, and simulates the changes of market price and power supply structure. The results show that (1) the power price under the coupling of three markets includes the TGC price and the ET price, so it is influenced by the ratio of renewable portfolio standards (RPS) and carbon reduction policy; (2) the combination of the TGC mechanism and the ET mechanism will be conducive to the optimization of long-term market power supply structure, so as to promote the realization of emission reduction targets; and (3) power generation rights trading, as a carbon reduction policy, will reduce the power generation of fossil energy in the short-term market, but in the long run, it will lead to the loss of momentum for the development of renewable energy. Therefore, regulators need to reasonably adjust different policies in order to give full play to the comprehensive regulatory role and help the energy and power industry and the low-carbon transformation of society. |
| format | Article |
| id | doaj-art-fb0dbe7c77a84c76b10b4046dc841a21 |
| institution | Kabale University |
| issn | 2079-8954 |
| language | English |
| publishDate | 2024-12-01 |
| publisher | MDPI AG |
| record_format | Article |
| series | Systems |
| spelling | doaj-art-fb0dbe7c77a84c76b10b4046dc841a212024-12-27T14:55:45ZengMDPI AGSystems2079-89542024-12-01121254510.3390/systems12120545What Is the Effect of China’s Renewable Energy Market-Based Coupling Policy?—A System Dynamics Analysis Based on the Coupling of Electricity Market, Green Certificate Market and Carbon MarketWenhui Zhao0Yanghui Lin1Hua Pan2College of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, ChinaCollege of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, ChinaCollege of Economics and Management, Shanghai University of Electric Power, Shanghai 200090, ChinaIn the context of China’s electricity market reform, green certificate trading and carbon trading, as important policy tools to promote the development of renewable energy and energy conservation and emission reduction in the power industry, will inevitably be coupled with the electricity market. In order to study whether the coupled market can successfully achieve the goals of power supply structure adjustment and carbon emission reduction, this paper establishes a system dynamics (SD) model, analyzes the correlation and coordination mechanism among the green certificate market (TGC), carbon market (ET) and electricity market, including generation right trading, and simulates the changes of market price and power supply structure. The results show that (1) the power price under the coupling of three markets includes the TGC price and the ET price, so it is influenced by the ratio of renewable portfolio standards (RPS) and carbon reduction policy; (2) the combination of the TGC mechanism and the ET mechanism will be conducive to the optimization of long-term market power supply structure, so as to promote the realization of emission reduction targets; and (3) power generation rights trading, as a carbon reduction policy, will reduce the power generation of fossil energy in the short-term market, but in the long run, it will lead to the loss of momentum for the development of renewable energy. Therefore, regulators need to reasonably adjust different policies in order to give full play to the comprehensive regulatory role and help the energy and power industry and the low-carbon transformation of society.https://www.mdpi.com/2079-8954/12/12/545power marketemission trading marketgreen certificate marketpower generation rights tradingrenewable energysystem dynamics |
| spellingShingle | Wenhui Zhao Yanghui Lin Hua Pan What Is the Effect of China’s Renewable Energy Market-Based Coupling Policy?—A System Dynamics Analysis Based on the Coupling of Electricity Market, Green Certificate Market and Carbon Market Systems power market emission trading market green certificate market power generation rights trading renewable energy system dynamics |
| title | What Is the Effect of China’s Renewable Energy Market-Based Coupling Policy?—A System Dynamics Analysis Based on the Coupling of Electricity Market, Green Certificate Market and Carbon Market |
| title_full | What Is the Effect of China’s Renewable Energy Market-Based Coupling Policy?—A System Dynamics Analysis Based on the Coupling of Electricity Market, Green Certificate Market and Carbon Market |
| title_fullStr | What Is the Effect of China’s Renewable Energy Market-Based Coupling Policy?—A System Dynamics Analysis Based on the Coupling of Electricity Market, Green Certificate Market and Carbon Market |
| title_full_unstemmed | What Is the Effect of China’s Renewable Energy Market-Based Coupling Policy?—A System Dynamics Analysis Based on the Coupling of Electricity Market, Green Certificate Market and Carbon Market |
| title_short | What Is the Effect of China’s Renewable Energy Market-Based Coupling Policy?—A System Dynamics Analysis Based on the Coupling of Electricity Market, Green Certificate Market and Carbon Market |
| title_sort | what is the effect of china s renewable energy market based coupling policy a system dynamics analysis based on the coupling of electricity market green certificate market and carbon market |
| topic | power market emission trading market green certificate market power generation rights trading renewable energy system dynamics |
| url | https://www.mdpi.com/2079-8954/12/12/545 |
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