The role of policy design and market forces to achieve an effective energy transition: A comparative analysis between the UK and Chinese models

Abstract

This chapter analyses how China and the UK have implemented policies transitioning away from fossil fuels to renewable energy. The UK pioneered renewable energy incentives and various government policy instruments have been applied, including direct subsidies, green certificates and feed-in-tariffs. The country now looks to move away from government incentives towards greater corporate involvement. Policies have also been introduced in transportation and other sectors, to decarbonise the economy by 2050. China represents an example of a government-led, top-down approach to energy transitioning building the world’s largest installed capacity of hydropower, solar PV and wind power. In other sectors such as e-mobility, decarbonisation policies and initiatives by local and central government are driving a shift in favour of the use of electric vehicles.