Assessment And Improving Suggestions On The Policy Of Energy Efficiency Fund In China

With the social development and economic growth, the big challenge of energy supply we are facing is how to make energy with high quality, safety and more clean. The only solution is to implement sustainable energy development strategies and to save energy/use energy efficient is the most important one of strategies. Therefore, we regard energy saving as one of our basic national policies.In 1980's and early 1990's, Chinese government had established and implemented a series of incentive policies to promote energy efficiency and performed well. With influence of tax reform and finance system reform, those incentive policies were invalidated mostly late 1990's. At present, there are barriers to promote energy efficiency including investment and technology risk. On the other hand, Market failure still exists even in developed countries. Because of barriers and failure factors in the energy efficiency market place, it's hard to get the potential of energy efficiency, even we know it is huge potential there. Though we've done some work to explore new incentive policies for energy efficiency, but we've not find the right one to fit in our system and specific situation. With the press of saving energy today, it is necessary to establish an energy efficiency fund with stability, transparency and fairness.However, we have to see that there is no an energy efficiency fund at the national level. Some funds related to energy efficiency we had in the past were abolished, but new financial channel has not set up yet. Financial resource is limited at the city level and unstable. Moreover, there are some problems of management, application and monitoring for these funds, which reduces the efficiency of using the funds.Establishing and implementing specific fund for energy efficiency is well-known experience. About 20 countries have public fund for energy efficiency and they've proved that those public fund are very supportive of energy efficiency and benefits economy, environment and society as well. Therefore, establishing energy efficiency fund is getting popular in the word. More and more countries are thinking of having this policy to be supportive of energy efficiency. Based on evaluating present energy efficiency funds and, the author is trying to propose an effective framework of establishing the special fund for energy efficiency.