Journal
CHINESE JOURNAL OF POPULATION RESOURCES AND ENVIRONMENT
Volume 17, Issue 3, Pages 197-202Publisher
ROUTLEDGE JOURNALS, TAYLOR & FRANCIS LTD
DOI: 10.1080/10042857.2019.1639470
Keywords
Energy transition; capital deepening; China; electricity market
Categories
Ask authors/readers for more resources
This paper provides a theoretical model to explain the causality between China's energy transition and capital deepening found by the empirical study. We prove that in the equilibrium, China's energy transition is endogenously determined by capital deepening due to the homogeneity of electricity and the monopolistic competition features of China's electricity market. Price effect, which is the effect of change in relative factor price, will affect energy transition only if the policy intervenes electricity price in terms of the primary sources from which it is generated. We propose that investment can promote energy transition by stimulating capital deepening which is biased to clean energy development. In this regard, our paper provides a new way of thinking for other developing countries to design an effective energy transition policy.
Authors
I am an author on this paper
Click your name to claim this paper and add it to your profile.
Reviews
Recommended
No Data Available