The policy effects of feed-in tariff and renewable portfolio standard: A case study of China's waste incineration power industry

Waste Manag. 2017 Oct;68:711-723. doi: 10.1016/j.wasman.2017.06.009. Epub 2017 Jul 29.


Among the regulatory policies, feed-in tariffs (FIT) and renewable portfolio standards (RPS) are the most popular to promote the development of renewable energy power industry. They can significantly contribute to the expansion of domestic industrial activities in terms of sustainable energy. This paper uses system dynamics (SD) to establish models of long-term development of China's waste incineration power industry under FIT and RPS schemes, and provides a case study by using scenario analysis method. The model, on the one hand, not only clearly shows the complex logical relationship between the factors but also assesses policy effects of the two policy tools in the development of the industry. On the other hand, it provides a reference for scholars to study similar problems in different countries, thereby facilitating an understanding of waste incineration power's long-term sustainable development pattern under FIT and RPS schemes, and helping to provide references for policy-making institutions. The results show that in the perfect competitive market, the implementation of RPS can promote long-term and rapid development of China's waste incineration power industry given the constraints and actions of the mechanisms of RPS quota proportion, the TGC valid period, and fines, compared with FIT. At the end of the paper, policy implications are offered as references for the government.

Keywords: Feed-in tariff; Policy effects; Renewable portfolio standard; System dynamics; Waste incineration power industry.

MeSH terms

  • China
  • Conservation of Natural Resources*
  • Environmental Policy
  • Incineration*
  • Industry