Mechanism Research On The Design Of Government Subsidy Incentive Policy In The Work Of Energy Saving And Emission Reduction

The work of energy saving and emission reduction has some features, such as, externality and public welfare. In the view of economics, the firms have no motivation to do the work of energy saving and emission reduction, in addition, the costs of equipment and technology of energy saving and emission reduction is too expensive. Obviously, the work of energy saving and emission reduction cannot be operated under the market mechanism. The government should introduce some policies and guidelines to resolve the externality, encourage the firms to operate the work of energy saving and emission reduction.The focus of this paper is on the problems of incentive mechanism in the policy-making of energy saving and emission reduction. Subsidy incentive mechanism researches are the starting point of this paper. The target of this research is using the agent-theory to building the policy analysis framework which can reveal the economic mechanism of the government subsidies policy design. This framework can be used to theoretically support the practical operation in government subsidies incentive mechanism in the work of energy saving and emission reduction in China and improve the performance of the government subsidies incentive. By researching the practice and policy-making of government subsidies incentive in the work of energy saving and emission reduction in recent years, the nature and necessity of government subsidies incentive policy are deeply discussed, the economic mechanism that how subsidies incentive policy effect the energy saving and emission reduction is analysis, the theories and methods of government subsidies incentive policy design in the condition of information asymmetric are researched. After all the analysis, discussions and researches, some advices to the government subsidies incentive mechanism of energy saving and emission reduction in China are proposed. With these advices, government can use resource reasonably, correct the market failure, optimize resource allocation, make the subsidies incentive mechanism play a greater effects, make the work of energy saving and emission reduction carry out efficiently.In the methodology of this paper, the author focus on the practice as well as theory, use deduction as well as induction to consider the issues, analysis problems statically as well as dynamically, empirically as well as normatively. Technology roadmap is expanded gradually according to the content, so the issue can be researched progressively. In this paper, the policy in the work of energy saving and emission reduction at home and abroad is described at first. By using theories in resource economics, environmental economics and information economics, the author discuss the economic characteristics of the work of energy saving and emission reduction and the mechanism of government subsidies incentive policy. The author builds the agent-theory model of government subsidies incentive in the energy saving and emission reduction by using agent-theory, game theory. The model contains some sub-models, such as, decision and intensity model of government subsidies incentive, firm strategic response model, monitoring model of government subsidies incentive, multi-objective model of government subsidies incentive and resource allocation model of government subsidies incentive. The author analyzes the factors which affect the incentive contract, such as, reservation utility of firm, degree of risk aversion and cost coefficient. The author also discusses the decision, intensity, efficiency and agency costs of government subsidies incentive. The author analyzes all the participants'interest in the work of energy saving and emission reduction, builds the game-model between the different levels of government and the firm, discusses the government monitoring and penalty mechanism.After all the theory and theory analyzed, the author uses the empirical analysis to support author's arguments. The three cases "Using award instead of subsidies" "Energy Management Contract" and "energy conservation projects" which are the sub-projects in the "ten key energy conservation projects" and "energy-saving products that benefit the project" are proposed to test the hypothetical assumption and proposition in the models which are proposed earlier. The author also gives a comment and analysis the design of the subsidies incentive policy in the three cases, and gives an empirical explanation. according to the theory analysis, cases, and status of the design of government subsidies incentive policy in the work of energy saving and emission reduction in China, the target and principles of government subsidies incentive policy in the work of energy saving and emission reduction in China is proposed, and some strategies and advices to improve the design of government subsidies incentive policy in the work of energy saving and emission reduction is also proposed.