Mechanisms and motivations: Green electricity trading in China's high-energy-consuming industries

Abstract

Green electricity trading is an effective means to promote the energy transition and sustainable development. The promotion of green electricity trading can strengthen the rigid requirements for specific industries, especially high-energy-consuming industries. Most previous studies have considered only the influence of individual characteristic factors on green electricity purchase intentions and have not investigated the influence of external green electricity trading mechanisms. To address these limitations, this study takes enterprises in high energy-consuming industries as the research objects and uses the choice experiment method to conduct a questionnaire survey. Using data from 200 enterprises in China's high energy-consuming industries, logit models are applied to examine the impact of changes in the design of the enterprise green electricity trading mechanism on the participation willingness of enterprises in high energy-consuming industries to purchase green power. The results show that the green electricity trading attributes that affect the participation willingness in descending order are as follows: transaction object > participating market > penalty mechanism > supplementary mechanism. In addition, an increase in the annual energy consumption of enterprises has a negative effect on their participation willingness. Finally, policy suggestions such as green electricity trading mechanism refinement and demand forecasting are proposed to improve China's green power trading market and provide a reference for the construction of green power trading in other countries.