RESEARCH ON THE CHINESE FOSSIL ENERGY AND NEW ENERGY SUBSIDY POLICY FROM THE PERSPECTIVE OF GAME THEORY

Ju Keyi, Li Changle

ABSTRACT: At present, despite the government have higher subsidies for the energies, the efficient energy subsidies are not adequate. In this paper, Cournot game was built based on the government subsidies for fossil energy and new energy power generation enterprises, about electricity production from fossil energy and new energy enterprises and market prices using the game analysis. The subsidies according to relationship of size among national level of carbon emissions M0 and fossil energy carbon emission levels M1 and new energy carbon emission levels M2, can be classified three situation: M0>M1>M2,M1>M0>M2,M1>M2>M0.Then compare three situations, so that provide basis and reference for the government subsidies.

Keywords: Energy subsidies, Fossil energy, New energy, Cournot game