Our news journalists obtained a quote from the research from the University of Jinan, "First, the mixed subsidy policy is the best one under generalised social welfare.
However, when the cost of renewable energy production or the energy negative coefficient is low, this subsidy policy generates a high electricity price. Second, when the output subsidy is used, the optimal price and optimal output of renewable energy will decrease with the increase of production cost and negative externality coefficient of renewable energy enterprises."
According to the news editors, the research concluded: "Finally, both the optimal price and optimal outputs depend on the level of negative externality and the cost of renewable energy production."
For more information on this research see: Influence of optimal government subsidies for renewable energy enterprises. IET Renewable Power Generation