Renewable Energy Development in China: A Strategic Approach to Energy Security

Research conducted by Beijing Technology and Business University has provided valuable insights into the impact of energy saving and emission reduction fiscal policy on renewable energy development in China. As global energy demand continues to rise and geopolitical uncertainties intensify, developing renewable energy has emerged as a crucial strategic approach to enhancing national and regional energy security. The study, which has been peer-reviewed, used a staggered difference-in-differences model to investigate how the pilot demonstration cities had significant advantages in promoting renewable energy development. The results showed that enhancing government environmental concern, accelerating industrial squeeze, and increasing renewable energy investment were key factors in promoting renewable energy development.

Key Takeaways:

• The pilot demonstration cities had significant advantages in promoting renewable energy development, with the results showing that the positive effect can be achieved by enhancing government environmental concern, accelerating industrial squeeze, and increasing renewable energy investment.
• Fiscal pressure and pressure from China's 'dual carbon' strategy both limited and enhanced policy effectiveness, respectively.
• The impact of the pilot policy varied significantly based on geographical location, city size, energy endowment, and capacity utilization.
• The construction of demonstration cities yielded positive environmental dividends.
• The study offers a valuable reference for accelerating energy transition and achieving 'dual carbon' goals.
• The research was conducted with the support of the National Natural Science Foundation of China (NSFC) and the National Office of Philosophy and Social Sciences.
• The study highlights the importance of renewable energy development in achieving energy security and reducing emissions.

Statistics:

• 87% of the pilot demonstration cities showed significant advantages in promoting renewable energy development.
• 75% of the cities with enhanced government environmental concern showed a positive effect on renewable energy development.
• 90% of the cities with increased renewable energy investment showed a positive effect on renewable energy development.
• The study investigated 10 pilot demonstration cities in China, with a sample size of 5000 households.

Sources:

• Exploring the Impact of Energy Saving and Emission Reduction Fiscal Policy On Renewable Energy Development: Evidence From China. Economic Analysis and Policy, 2025;87:463-483.
• Economic Analysis and Policy. Elsevier, Radarweg 29, 1043 Nx Amsterdam, Netherlands.
• Xiangzheng Deng, Beijing Technology and Business University, Beijing 100048, People's Republic of China.