Toward Renewable Energy in China: Revisiting Driving Factors of Chinese Wind Power Generation Development and Spatial Distribution

Abstract

As the biggest renewable energy installation and generation country globally, it is important to deeply understand China’s wind power production determinants and draw implications for energy policy. This paper analyzes local electricity deployment, electricity consumption, investment in wind power, and price of wind power electricity on-grid apart from traditional GDP and CO2 factors in the panel data regression model, and some interesting results are found. The investment of installation and the price of wind power electricity on-grid have negative impacts on wind power generation, while local electricity consumption and inter-provincial power transmission capacity significantly impact wind power generation positively. GDP and CO2 emission per capita have negative and positive impacts on wind power production, respectively. As for different wind power zones, the most influencing factors are local electricity consumption. Hence, this paper concludes that local absorbing capacity is still an important limiting factor to Chinese renewable energy development. At last, some policies are suggested to enhance the local absorbing capacity of renewable energy.