Exploring Clean Energy Technology Diffusion and Development in the Yellow River Basin Amid Water Resource Constraints

Abstract

Clean energy serves as a crucial means to alleviate water resource shortages and ensure power production safety. This study delves into clean energy diffusion and development within the confines of the Yellow River Basin, considering water resource constraints. It examines the dynamic evolution of the strategic choices made by local governments and the expansion of clean energy businesses among power generation groups using an evolutionary game model. Additionally, the study employs the L-V model to elucidate the diffusion and competition dynamics between fossil fuel power generation technology (FFGT) and clean energy generation technology (CEGT). To provide a more scientific elucidation of this process, actual values are utilized for simulation. The findings indicate that: (1) The strategic decisions of power generation groups are influenced not only by local government guidance but also by advancement in clean energy technology and cost reduction efforts; (2) the implementation of water resource tax guidance strategies yields noticeable effects, with higher taxes correlating to increased willingness among power generation groups to expand clean energy businesses; (3) in contrast to diffusion speed, the final state of equilibrium attained by the two technologies is more closely tied to the competition coefficient. A higher competition coefficient leads clean energy generation technology to gain a competitive advantage in the market, potentially dominating it entirely. Based on these conclusions, pertinent policy suggestions are proposed to drive the advancement of clean energy and facilitate energy structure transformation in the Yellow River Basin.