Article: The impact of tax burden reduction for electricity quota trading system in China Journal: International Journal of Global Energy Issues (IJGEI) 2026 Vol.48 No.8 pp.63 - 89 Abstract: In order to promote the consumption and utilisation of clean energy and reduce the tax burden of benchmark electricity pricing policy, China has implemented a nationwide trial of green power certificate issuance and subscription systems. To further advance the adoption of clean energy and mitigate the fiscal impact of the benchmark tariff policy, this paper constructs a multi-policy coupling model with interaction terms to assess the fiscal relief effect of green certificate trading under the coexistence of benchmark electricity pricing policies and the green certificate system in China. Additionally, the model explores the effects of different trading mechanisms and quota schemes (free market for green certificates vs. mandatory market for electricity quotas) on the pricing strategies of heterogeneous sellers and compliance decisions of heterogeneous quota holders, quantifying synergistic or offsetting effects among different policy instruments in the Chinese context. Inderscience Publishers - linking academia, business and industry through research

Title: The impact of tax burden reduction for electricity quota trading system in China

Authors: Xiaomeng Liu

Addresses: Business School, Jinling Institute of Technology, Nanjing 211169, China

Abstract: In order to promote the consumption and utilisation of clean energy and reduce the tax burden of benchmark electricity pricing policy, China has implemented a nationwide trial of green power certificate issuance and subscription systems. To further advance the adoption of clean energy and mitigate the fiscal impact of the benchmark tariff policy, this paper constructs a multi-policy coupling model with interaction terms to assess the fiscal relief effect of green certificate trading under the coexistence of benchmark electricity pricing policies and the green certificate system in China. Additionally, the model explores the effects of different trading mechanisms and quota schemes (free market for green certificates vs. mandatory market for electricity quotas) on the pricing strategies of heterogeneous sellers and compliance decisions of heterogeneous quota holders, quantifying synergistic or offsetting effects among different policy instruments in the Chinese context.

Keywords: green power certificate; green certificate trading; renewable energy quota system; tax burden; China.

DOI: 10.1504/IJGEI.2026.153243

International Journal of Global Energy Issues, 2026 Vol.48 No.8, pp.63 - 89

Received: 19 Dec 2025
Accepted: 01 Mar 2026
Published online: 29 Apr 2026 *

Title: The impact of tax burden reduction for electricity quota trading system in China

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