Economic incentive mechanism of renewable energy generation

Energy is the important foundation of the national economy development, but the conventional energy will tend to be exhausted, and is the primary factor of the environmental pollution. The renewable energy can supplement or substitute the conventional energy source. Thus, it can reduce the pollution, protect and improve the environment. Compared with the traditional mechanism, such as the compulsory administration means, the economic incentive mechanism has the superiority in promoting the renewable energy development. The present situation and the incentive measures of international renewable energy development are discussed; the environmental cost and the substitute cost of new energy are analyzed; the economical incentive mechanism of renewable energy generation is elaborated from the government subsidy, the financing support, the tax revenue method and the renewable energy electrovalence mechanism.