System dynamics approach and causal mapping analysis for the invigoration of renewable energy business

Abstract

The renewable energy business is receiving worldwide attention due to climate change, however the supply status is still insufficient. This study aims to prepare a plan to invigorate the renewable energy business through a system dynamics approach and causal mapping analysis. Through careful review of previous studies and cases, mediate variables (acceptability of residents, resident participation, shared growth) for invigoration of the renewable energy business were discovered. A causal mapping was created through the analysis of the causal relationship between the dependent variables closely related to the mediate variables. And through this, a policy plan for invigoration of the renewable energy business was prepared. The policy plan was derived by applying the Galbraith's Star Model. (Structure: Establish an advanced cooperative system, Strategy: Establish a continuous government support system, Rewards: Develop a systematic profit sharing system, Process: Establish a strategy for each sector for shared growth, People: Strengthen governance among stakeholders). In order for these policy plans to be successful, the residents and the government must cooperate with each other in a horizontal relationship to find solutions to the problems.