TY - JOUR
T1 - Energy Transition Dynamics Amid Policy Uncertainty, Environmental Regulations and Geopolitics: Evidence from China
AU - Dogah, Kingsley
AU - Lan, Hao
AU - Zhao, Sheng
PY - 2024/6/23
Y1 - 2024/6/23
N2 - The time-varying dynamics of the transition to renewable energy reflect the effectiveness and efficiency of energy policy. This paper investigates renewable energy transition behavior in China using Markov regime-switching models. Two distinct phases, expansion and contraction, are identified based on the growth rates of renewable energy consumption share. We find that since China started its new-energy national strategy in 2005, there has been an extended period in which it has been in the expansion state, although it occasionally reverts to a contraction state. Intriguingly, we uncover that the timing of transition state changes can be explained by the changes in policy-related, market-based instruments and risk-related indexes. These findings present implications for policymakers in developing more precise and effective policies, that drives investment choices to align with the goal of a sustainable energy system.
AB - The time-varying dynamics of the transition to renewable energy reflect the effectiveness and efficiency of energy policy. This paper investigates renewable energy transition behavior in China using Markov regime-switching models. Two distinct phases, expansion and contraction, are identified based on the growth rates of renewable energy consumption share. We find that since China started its new-energy national strategy in 2005, there has been an extended period in which it has been in the expansion state, although it occasionally reverts to a contraction state. Intriguingly, we uncover that the timing of transition state changes can be explained by the changes in policy-related, market-based instruments and risk-related indexes. These findings present implications for policymakers in developing more precise and effective policies, that drives investment choices to align with the goal of a sustainable energy system.
M3 - Article
SN - 0959-6526
JO - Journal of Cleaner Production
JF - Journal of Cleaner Production
ER -