Fiscal Expenditure’s Impact On Energy Conservation And Environmental Protection Industry

Energy conservation and environmental protection industry is such one that provides the material basis and technical supporting for saving energy resources,developing circular economy and protecting ecological environment.In 2016,“the 13 th Five Year Plan of energy conservation and environmental protection industry” was released.This industry will become the focus of economic development in China.Developing energy conservation and environmental protection industry is the main measure to cultivate and develop new kinetic energy and improve the green competitiveness,the key support to make up for the lack of resources and environment and improve eco-environmental quality,and the objective requirement to promote construction of ecological civilization and build a beautiful China Energy conservation and environmental protection industry is both a strategic emerging industry and one that provides goods with the quality of public commodity Without government’s support,energy conservation and environmental protection industries will not establish reasonable standards and requirements;market cultivation and industry’s development is going to be very slow;the economic benefits of energy conservation and environmental protection industry must also be very poor.Ministry of Finance has listed environmental protection expenditure in fiscal budget item since 2007.After almost a decade passing away,whether it plays a role in promoting environmental protection can be seen from the development of energy conservation and environmental protection industry.This thesis shows the fact that policies have been adopted to support energy conservation and environmental protection industry at home and abroad.From the perspective of Hebei Province,the present research studies whether the fiscal expenditure has promotion effects on the development of energy conservation and environmental protection industry.Based on the data of 11 cities in Hebei Province through eight years,using the variable intercept fixed effect panel data model,the empirical analysis of energy conservation and environmental protection expenditure’s effect on the industry is conducted.The empirical results show when the energy conservation and environmental protection expenditure rises 1%,energy conservation and environmental protection industry will rise 2.72%.This means that fiscal expenditure can promote the development of energy conservation and environmental protection industry,and the promoting effect is remarkable.We master the overseas advanced experiences,so we can reflect on our own and learn from the outstandings.Based on the results of empirical and normative analysis,this thesis gives the following suggestions: On fiscal expenditure,Hebei Province should establish a unified investment and management system,making financial investment reasonable and continuous and play a role in guiding market development;the government ought to build green procurement system which should be transparent and keep pace with the times so as to expand the market demand of energy conservation and environmental protection industry and to establish high standards of energy conservation and environmental protection products;on tax policies,act according to circumstances and it is not necessary to make the exactly same policy as America or Japan eagerly.On the basis of the existing environment tax and consumption tax,for polluters we gradually improve their tax and expand the scope of tax while for those who conduct energy conservation and emissions reduction,we reduce and lower their tax;on the financing of energy conservation and environmental protection industry,we actively expand the channels and provide the platform.The local government financing,credits of commercial bank and private investment work together and promote the development of energy conservation and environmental protection industry in Hebei Province.