Emergency Policy for Renewable Energy Crisis Based on System Dynamics Case study of financial crisis influence on Danish renewable energy

Danish renewable energy share of energy consumption grew remarkably over the past 28 years and the government had set ambitious goal for the next 12 years. However, a global financial crisis is brewing underway, arising from the burst of US subprime mortgage bubble. There is a concern whether renewable energy can still maintain its momentum in face of this crisis. This study attempts to explore the possible impact from the perspective of non-renewable energy fuel price collapse, as a result of this crisis. Simulation result supports the hypothesis that government support and non-renewable energy fuel price are mainly responsible for the dynamics of Danish renewable energy share these years. It is discovered that the renewable energy share can stagnant or decline if nonrenewable energy fuel price is low enough, but increasing government support is able to alleviate the problem. Further studies are needed for full impact assessment and detailed policy design.