Environmental Policy Integration in the Energy Sector of China: The Roles of the Institutional Context

The rapid growth of China’s renewable energy market and production capacity has attracted worldwide attention. Environmental policy integration in the energy sector and the institutional background behind this growth have seen little examination. In this paper, we present an assessment of environmental policy integration (EPI), attempting to reveal how the institutional factors facilitate EPI in the energy sector of China. A qualitative analytical framework involving normative, organizational, and procedural dimensions, incorporating multiple pieces of quantitative evidence, was applied. The results show that an ambitious and long-term normative vision covering political will, social backing, and cultural foundation in China is indispensable to the EPI process in the energy sector. The energy agency’s trans-sector cooperation in policy-making has been established to overcome the sectoral compartmentalization. China’s EPI in energy has a relatively complete and stable regulating system but, at the same time, it is expected to obtain more benefits from market cultivation and public participation. In this process, advantages such as the co-evolution of the green energy innovation, market, and society do exist; however, this market-oriented approach may bring the risk of economic and societal disturbances when interest-driven production capacity growth far surpasses market and societal requirements. This potential risk needs to be handled and prevented by strong governmental guidance and support. The continuous ambitious and long-term visioning of EPI, sufficient governmental funds, and a proactive industrial plan for renewable energy, are suggested.