Evaluatiom Of Renewable Energy Power Incentive Policy Based On Social Welfare

The extensive exploitation and utilization of non-renewable energy sources such as coal and oil has led to air pollution in various countries around the world,as well as water pollution and various other types of pollution.The global ecological environment has been destroyed nowadays.Wind,solar and other types of renewable energy sources can reduce the pollution to the environment,and can save the resources in the world.So our country need to vigorously develop the utilization of the renewable energy to alleviate the pressure of energy and solve the problem of environmental pollution in our country.Therefore,It is essential for the government to formulate effective policies to stimulate the development of renewable energy.In this paper,the theory and method of power game is put forward to applied in the research and development of the renewable energy investment of the renewable energy enterprises.We study two renewable energy companies with different research and development capabilities.These two enterprises play the option games and we get the calculation of the investment threshold and net present value of the investment in the different situations,respectively in competitive and cooperative situations.We also construct the model of consumer surplus and the positive externality of the renewable energy which is conform to the renewable energy market to get the model of social welfare.We simulate the dynamic characteristics of social welfare,consumer surplus,the positive externality and net present value of investment with some of the factors.The results show that if the government's aim is to maximize the social welfare:When the government have both the R&D subsidy electricity and the price subsidies for renewable energy companies,the larger the gap between two technology asymmetric renewable energy enterprise's R&D ability,the greater the initial value of renewable energy technology R&D,and the more the cost of the technology R&D,the more the government should encourage renewable energy enterprises to carry out cooperative R&D,While the bigger the government's electricity subsidies,the more the government should encourage competition between the renewable energy companies;When the government only have the price subsidies for renewable energy companies,the larger the gap between two technology asymmetric renewable energy enterprise's R&D ability,the greater the initial value of renewable energy technology R&D,the more thegovernment should encourage renewable energy enterprises to carry out cooperative R&D,While the bigger the government's electricity subsidies and the more the cost of the technology R&D,the more the government should encourage competition between the renewable energy companies;When the government have no R&D subsidy electricity neither the price subsidies for renewable energy companies,the larger the gap between two technology asymmetric renewable energy enterprise's R&D ability,the greater the initial value of renewable energy technology R&D and the more the cost of the technology R&D,the more the government should encourage renewable energy enterprises to carry out cooperative R&D,While the bigger the government's electricity subsidies,the more the government should encourage competition between the renewable energy companies.And government electricity price subsidy and technology R&D subsidy policy can improve social welfare.Therefore,it is better for the government to make a policy of subsidies for both electricity price and renewable energy technology to maximize the social welfare.