Green Certificate Trading, Renewable Portfolio Standard and Tax Burden Reductions

The article is in Chinese with an English summary:

The national-wide issuance and trading of green certificates has been initiated to improve the renewable energy integration and reduce the tax burden in the feed-in tariff scheme. To test the latter effects in green certificate trading, we construct the certificate pricing model to analyze the market equilibrium with or without renewable portfolio standard requirements, and compare the tax burden effect with that under the feed-in tariff policy. Results show that renewable energy tariff surcharge is significantly reduced in certificate trading with renewable quota requirements for power sellers. The power curtailment and delay in subsidy release will lead to a lower equilibrium price and the renewable quota requirement for power sellers will cause the rebalance of green electricity trading volume. Both will affect the reduction of tax burden in the feed-in tariff scheme. Thus, the current green certificate trading scheme can be improved to further reduce the tax burden with renewable energy tariff surcharge.

Yu, Y., and C.-Z. Li. 2020. Green Certificate Trading, Renewable Portfolio Standard and Tax Burden Reductions. Chinese journal of population, resources and environment  2:80–88.