Policy and market mechanisms for promoting sustainable energy transition: role of government and private sector

• Published in: Economic change and restructuring 2024-08, Vol.57 (4), p.153, Article 153
• Main Authors: Song, Tingting, Li, Hongyue, Feng, Ziyang
• Format: Article
• Language: English
• Subjects: Adoption of innovations; Air pollution; Air pollution control; Alternative energy; Ambition; Carbon dioxide; Carbon dioxide emissions; Case studies; Climate change; Coal; Development Economics; Economic Growth; Economic Policy; Economics; Economics and Finance; Energy transition; Government; Green energy; Innovations; Instrumentation; International Economics; Legislation; Macroeconomics/Monetary Economics//Financial Economics; Markets; Political Economy/Economic Systems; Private sector; Public sector; Renewable energy; Renewable energy technologies; Renewable resources; Sustainability; Sustainable energy; Transformation
• ISSN: 1573-9414; 1574-0277
• DOI: 10.1007/s10644-024-09734-6

This study looks at China’s supportive market and regulatory frameworks for a sustainable energy transition. It examines how public and commercial sectors help shift to cleaner, more sustainable energy. We use both methods to evaluate the effectiveness of policies, legislation, and incentives in boosting green energy adoption. This inquiry also examines how governments and businesses collaborate to meet China’s ambitious energy transformation objectives. Climate change and China’s air pollution need a shift away from coal-based energy generation. The historical study shows two policy mix temporal variations: rules and instruments configurations and regulatory intensity and concentration. The strategy combination has moved from authority-based instrumentation to the current response, resulting in a lot of instrumentation and several device kinds. The Chinese government is experimenting with new rules to minimize carbon dioxide emissions while enforcing air pollution reduction and renewable energy assistance initiatives. This study explores the complicated relationship between policy frameworks and market dynamics to understand better how government-crafted strategic plans may align with market processes and capitalize on private-sector innovation and investment. Through case studies and theoretical models, it outlines each industry’s mutually beneficial role in supporting sustainable energy. New legislative tools, calibrated ones, and policies that replace and sequence all evolutionary traits are needed. The study shows that China has used a complex set of regulatory mechanisms to reduce coal-based power sector pollution and encourage renewable energy technology.