China's Wind Power Industry Development And Taxation Policy To Support Research

Living in the global booming wind power trend, China keeps pace with the times and enacted the Renewable Energy Law in Feb.2005 and relevent policies to promote its wind power industry development. By the end of 2009, China wind power installation ranks the second place, next to the United States, Wind power industry has become the new economic growth point of China.Because the wind power with the features of high initial investment, long recovered period and fast technical updates etc, the world governments adopted various policy measures to accelarate the wind power development, Especially the Europe countries and America has developed variety of finance policies to support wind power industry. China's finance policies on supporting wind energy development are far from perfect, there is less study about finance policy system for wind power industry development in the existing research results. As a economic lever of the government, finance policies is an important guarantee for the wind power industry sound development. At present, how to use finance policies to promote China's wind power industry, has become an important subject for study.The Paper focused on the research framework of the motivation, background, targets and path selection of tax and fiscal policy on supporting wind power industry. In the course of the study, it is comprehensive applicated the available fiscal and tax theory, qualitative analysis and quantitative analysis method, combining international experience with the actual conditions in China. With the aid of data analysis, graphics, tables, cases, etc., it attempts to combine the theory and practice for the purpose of analyzing and solving problems.Under the research framework, the Paper analysed the strategic significance of developing China's wind power industry on optimizing the energy structure and supply security, and its important strategic position of becoming one of the main stream energy in the future. The government's leading role and the necessity of tax and fiscal policy for supporting wind power industry. it introduced the global wind power development and analysed the internationa policy experiance, reviewed the status, trends, opportunities and major obstacles of China wind power industry development. And reviewed the related promoting policies on wind power industry. With the experience on international finance policy, as far as our country and wind energy stratage concerned, considering on the main obstacles of the industry development, the insufficiencies of the present tax and fiscal policy, the Paper put forward the suggestions on how to perfect the present finance and tax and fiscal policy system to spur China wind power industry.Through analysis, the paper drew conclutions on the following measures for constructing and improving China tax and fiscal policy system on wind power industry:Firsty, to improve the finance policy system:Further increase financial input in wind power industry, such as:input for technology research and development, enhance direct subsidies on offshore wind power demonstration projects, wind power grid connection network building and technical progress; Build financing platform for wind power industry, set up an unified domestic carbon trading market; Accelerate building the national renewable energy development fund, proposed to continue the renewable energy surcharge policy, and through the introduction of carbon tax on fossil energy etc to raise funds for providing stable and continuous financial security of China's wind power industry development, And give full scope to the initiative and enthusisiasm of the local authorities.Secondly, To improve the tax policy system on wind power industry:In view of the main obstacles in the development of wind power industry, and the features of the links of wind energy industry, it is recommended to further improve the present advantage policies of value-added tax, enterprises income tax, import and export duties etc on wind power indurstry.Finnally, as well as constructing and improving tax and fiscal policy for wind power industry, it is also needed to improve and strengthen the other related supporting policies of wind power industry, such as:wind power price policy optimizing, standardizing wind energy grid connection,strenghthen the talent resources, accelerate the industry administration and regulation, improving the wind energy industry public service system etc. The tax and fiscal policy system and the relevant supporting policies should coordinate with each other, and form into a joint force to promote China wind power industry development.This paper strives to introduce the new perspective on how to make use of tax and fiscal policy to support wind power industry development, proposed the social and environment costs and benefits should be incorporated into the scope of tax and fiscal policy cost-benefit analysis, and utilizing economic model analized the stimulus of tax and fiscal policy to business investment in wind industry. For the reference of international experience, based on the actual national status in China, it comes up with the corresponding policy advices on construct and perfect the tax and fiscal policy system to promote wind power industry development, which provides China's current tax and fiscal policy system on wind power a theoretical guidance and practical significance.