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Quantifying the nonlinear relationships between environmental policy components and share energy from renewable
Yixin Chang1, Long Zhou2, Sihong Li2
1School of Business, Macau University of Science and Technology, Macau SAR, China.
Journal of Environmental Management
|March 26, 2025
Summary
Environmental policies significantly impact renewable energy. A study found carbon taxes and R&D spending are key drivers, while policy combinations create synergistic or antagonistic effects for renewable energy transitions.
Area of Science:
- Environmental Policy Analysis
- Renewable Energy Economics
- Econometrics
Background:
- Understanding the complex interplay between environmental policies and renewable energy adoption is crucial for effective climate action.
- Existing research often overlooks the nonlinear relationships and interaction effects of various policy components.
Purpose of the Study:
- To analyze the nonlinear relationships between 13 environmental policy components and the share of renewable energy in 19 OECD countries (2004-2020).
- To identify the most influential policy components and their interaction effects on renewable energy transitions.
Main Methods:
- Utilized Random Forest models to explore relationships between policy components and renewable energy share.
- Conducted a comprehensive analysis of market-based, non-market-based, and technology support policies.
Main Results:
- Identified nonlinear relationships and varying impacts of policy components.
- Carbon dioxide tax, low-carbon R&D expenditure, and particulate matter emission limits were most influential.
- Synergistic effects observed between carbon dioxide tax and solar energy support; antagonistic effects between carbon dioxide tax and particulate matter emission limits.
Conclusions:
- Quantified relative policy importance, threshold effects, and interactions to bridge knowledge gaps in renewable energy transitions.
- Highlighted the need for coordinated policy mixes, considering synergistic and antagonistic effects, to achieve renewable energy targets effectively.
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