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Research on the external environment cost for renewable energy

The renewable energy source is clean and has a positive effect on environment to help reduce pollution. It has already become the important composition of China's energy strategy and also the important method for the lower carbon strategy in China. However, it is still the starting stage for the application of the renewable energy in China. And it is crucial to evaluate the externality of environmental value for renewable energy. Based on the marginal opportunity cost theory, this paper concentrates on the value composition of the renewable energy and demonstrates them by the way of the dynamic model which reflects the relations among all the energies. An optimal growth model is proposed herein to confirm all the conclusions and improves the policies for the renewable energy industry.