Construction of Competitive Electricity Markets and Green Energy Technology Innovation — Evidence from Power Sector Reform

Speaker：Zhao Renjie, Professor, Northwest University

Host：Bi Qingmiao, Associate Professor, Lingnan College

Time and Date：9:30, March 27, 2026 (Friday)

Venue：Room 104, Mayingbiao Hall

Language：Chinese

Abstract：

Green energy technology innovation is a key pillar for building a new-type energy system and for steadily advancing carbon peaking and carbon neutrality. However, insufficient absorption of green electricity has led to the curtailment of wind and solar power, which not only results in wasted renewable energy but also severely constrains firms' incentives to innovate.

Based on China's new round of power sector reform, this paper uses data from the National Tax Survey (2010–2020) and text-mined green energy patent matching data. The results show that the electricity market reform characterized by "liberalizing both ends while regulating the middle" effectively enhances production incentives for green power enterprises and promotes both the quantity and quality of green energy technology innovation. This is achieved by breaking the monopoly over grid access, facilitating cross-regional electricity trading, and alleviating cost pressures associated with green electricity.

Mechanism tests indicate that increased green electricity consumption improves the operating revenues of green power firms and their access to external financing, thereby boosting R&D investment and fostering competition in green energy technologies among firms. Heterogeneity analysis shows that the innovation effects of electricity market reform are more pronounced for firms with a stronger technological base in green energy, those located downstream in the supply chain, and medium- to large-sized enterprises. In terms of technological categories, the reform exerts a stronger positive impact on downstream power generation technologies.

This paper not only provides policy insights from the perspective of deepening power sector reform to support the development of a new-type energy system and the high-quality growth of the green energy industry, but also offers important references for accelerating market-oriented reforms in competitive segments of natural monopoly industries to promote firms' key technological innovation during the 15th Five-Year Plan period.

Profile:

Zhao Renjie is a Professor and Ph.D. Supervisor at the School of Economics and Management, Northwest University. His primary research areas include Public Economics and the Political Economy of Socialism with Chinese Characteristics.

He has been selected for the National Young Talent Program and the Shaanxi Provincial High-Level Talent Recruitment Program. He has led multiple research projects, including General and Young Scientist Grants from the National Natural Science Foundation of China, as well as the Youth Innovation Team Program for universities in Shaanxi Province. He has published more than 30 papers in leading journals such as Economic Research Journal, Management World, China Economic Quarterly, The Journal of World Economy, as well as international journals including Regional Science and Urban Economics, Economic Inquiry, and The Leadership Quarterly.

He also serves as a member of the Xi’an Decision-Making Advisory Committee, and his policy reports have received endorsements from national leaders. His research achievements have been awarded the First Prize for Outstanding Achievements in Philosophy and Social Sciences of Shaanxi Province (16th and 17th sessions). In addition, he has led key provincial teaching reform projects, and his teaching achievements have received both the Grand Prize and First Prize of the Shaanxi Provincial Teaching Achievement Awards.