Comparative analysis on the policy effects of fixed-price subsidies for renewable energy trading and quota-free market

At present, China has established fixed-price subsidies and the cost-sharing system. Although this policy benefits the development of renewable energy, it is not conducive to reduce the cost of renewable energy and renewable energy consumptive. This paper analyses dynamic impact mechanism of fixed-price subsidies and quota-free market to renewable energy costs and consumptive on the basis of basic assumption quota market transactions. According to empirical analysis we find that: First, Compared with fixed price subsidies, quota market transactions can better reduce production cost of renewable energy. second, Quota trading market can better realize full acquisition of renewable energy comparing with fixed-price subsidies achieve, and can increase the social welfare.