Renewable Energy Consumption Decisions under Finite Rationality - A Quadratic Evolutionary Game Considering Prospect Theory

Deploying renewable energy is crucial for China's energy transition, and the renewable portfolio standard is an important policy to promote energy integration. Considering the bounded rationality and risk preferences of policy participants, this paper constructs a four-player game model to analyze the impact of psychological factors on the policy, and verifies the model using MATLAB. The results show that the central government tends to avoid risk, while local governments prefer to avoid loss. Local government participation enthusiasm decreases as constraint intensity increases. Power producers and power grid companies are inclined towards risk aversion and loss aversion to maximize expected returns.