Why invest in wind energy? Career incentives and Chinese renewable energy politics. (December 2016)

• Record Type: Journal Article
• Authors: Cao, Xun; Kleit, Andrew; Liu, Chuyu
• Is Part Of: Energy policy. Volume 99(2016)
• Page Start: 120
• Page End: 131
• Publication Date: 2016-12
• Subjects: Environment -- Energy -- Renewables -- Career incentives -- China; Energy policy -- Periodicals; Politique énergétique -- Périodiques; Electronic journals; 333.79
• DOI: 10.1016/j.enpol.2016.09.015
• Languages: English
• ISSNs: 0301-4215

Abstract

Abstract: We study wind development at the provincial level in China, modelling installed wind capacities as a function of both economics and politics. We assume that the top provincial officials desire to maximize their chances of promotion under the Chinese cadre evaluation system. We expect that those with the strongest incentives to perform in order to achieve promotion would work harder to comply with the central government's policy agenda to promote renewable energy. Collecting and testing data on provincial leaders' characteristics, we find that provinces governed by party secretaries who were approaching the age of 65 are associated with significantly higher level of wind installed capacities. This result supports the political tournaments theory of Chinese politics. We also find that better educated party secretaries are likely to be more supportive of renewable energy, implying that education acts to encourage provincial leaders to support the central government's policy. Highlights: No negative association between fossil fuel production and wind energy development. Provinces with party secretaries approaching the age of 65 have more installed capacities. Better educated party secretaries are likely to be more supportive of renewable energy.