Green Power Certificates in China: A Study on Pricing and Transaction Decisions

The Chinese government has made many adjustments regarding the original green power certificate policies. Under the new policy, renewable energy power generation enterprises will face new green certificate pricing dilemmas and the quota subject will also face new transaction decision-making problems. Based on the existing market problems, this paper analyzes the positive impact of the new policy on the green certificate market and the main factors affecting green certificate pricing and trade decision-making under the new policy. It also establishes a dynamic marginal price model for quota subjects participating in green certificate trading. Finally, it puts forward relevant decision-making suggestions for promoting the vigorous development of the green certificate market in China.