Promotion Of Renewable Energy Development And Taxation Policy Research

On February 28, 2005, the fourth session of Standing Committee of the tenthPeople's Congress passed "the renewable energy law". This law stipulates: In ourcountry, the renewable energy includes wind energy, solar energy, hydroenergy,biomass energy, geothermal energy, ocean energy, etc., which are not the fossil energy.In our country, the reason that bringing the renewable energy up to the height oflegislating is that, compared with fossil energy, such as coal, petroleum, etc., therenewable energy has the characteristics that do not pollute the environment,discharge the gas of the greenhouse, can be utilized continuously forever. Therenewable energy is important resource to make harmonious development betweenpeople and natural come true and to meet human energy demand. It is also animportant measure to optimize the structure of energy. In fact, the conditions that theenergy supply in our country increases fast can not catch up with the energy demand,which increased much fast even more, the energy structure is unreasonable, thedemand on foreign energy is increasing constantly, is the forced choice for ourcountry to develop renewable energy. For this reason, in order to maintain thesustainable development of national economy, we must develop renewable energyactively, lead and encourage all kinds of domestic and international economic subjectsto participate in developing and utilizing renewable energy, making it become one ofimportant alternative energy sources following coal, petroleum, natural gas.However, for the reasons of dispersiveness, difficult acquired character, highinvestment and long periodic of investment repayment with the renewable energy,governments of various countries take various kinds of policies and measures topromote the development of renewable energy industry one after another. Especiallyfor American and European countries, they have made many kinds of policies ofpublic finance and taxation to promote renewable energy technologycommercialization, improve market penetrability and economic competitiveness. But,there are still few policies in promoting the development of renewable energy in ourcountry at present. There is also no special fiscal and taxation policy. Concerning theresearch on fiscal and taxation policy in developing renewable energy in our country,we concentrate much more on supply research of fiscal policy and taxation policy,while weak in renewable energy-consuming research, especially in case of supply onthe electrical net at a competitive price. We also study less in improving the marketcompetitiveness of renewable energy product. In the current course of research inpolicy, there is also less cooperative effect research of fiscal and taxation policy withother policies.Through analyzing the fiscal and taxation policy problem of renewable energy inour country and using the experience of promoting renewable energy development inthe foreign country, this text aims to propose how to perfect the fiscal and taxationpolicy of renewable energy in our country so that we can promote the renewableenergy of our country to accelerate commercial paces, improve market penetrabilityand economic competitiveness, thus optimize the structure of energy of our countryand settle the potential energy crisis in the future.The full text rounds the necessity of policy support closely in developing renewableenergy, running through every chapter and combining theoretical analysis withempirical analysis. This article uses the relevant data of current situation and prospectabout the development of renewable energy. It also makes use of the fiscal andtaxation policy of typical foreign country in promoting the development of renewableenergy. And through focusing on the problems our country facing in developingrenewable energy and the problems exsiting in the latest policies of public finance andtaxation, this text recommends some policy, which has some realistic reference value.In the course of studying, the author strives to combine theory with practice andachieve the goal of analyzing the problem, solving the problem by the command offiscal theory and taxation theory, by combining with quantitative analysis andqualitative analysis, by combining international experience with national conditions inour country, by making use of datum analysis, figure, form, etc.Generally, this article includes four chapters.Chapter one is an introduction to renewable energy. To begin with, this text has putforward the concept of renewable energy in the world and the concept in the law ofour country, thus we can distinct target that the policy implemented and the concretobject of studying: major in turning renewable energy into electricity and giveconsideration to the use in heat energy and marsh gas of renewable energy. Secondly,this article has proposed the reason that our country should develop renewable energyand has reviewed the relevant laws and regulations that our country quickens thedevelopment of renewable energy in recent years through the analysis of supply anddemand contradiction of the energy, energy structure, energy safety, environmentalpollution by non-renewable energy, etc. Finanlly, on the basis of analyzing currentsituation and prospect of typical foreign countries and our country in developingrenewable energy, this article interprets that, in the course of developing renewableenergy in our country, there are a lot of problems. Those problems includes slowadvance in technological progress, the relatively too high cost of production, the lackof incentive policy and the problem in management, etc.Chapter two is a brief introduction to fiscal policy and taxation policy aboutrenewable energy. In the beginning, this article puts forward the necessity of fiscalpolicy encouragement by analyzing character of public goods in research anddevelopment of renewable energy technology and by analyzing the problems inexpanding the market of renewable energy. Secondly, this article concludes thattaxation policy is very essential in promoting the development of renewable energy byanalyzing production incentive and investment encouragement effect provided byexemption of income tax, depreciation, tax exemption of investment, etc. Thirdly, thischapter has combs the direct or indirect fiscal and taxation policy about renewableenergy development in the current fiscal system and tax system of our country andsummarizes those current fiscal and taxation policies. Finanlly, this article putsforward issues about current fiscal and taxation policy. Those issue are that, thedegrees in supporting is not enough, the policy range is very narrow, the policy isunify and lacks systematic management, etc.Chapter three is to compare and learn the experience of fiscal policy and taxationpolicy implemented by foreign countries in promoting the development of renewableenergy. Through drawing lessons from the fiscal and taxation policy about renewableenergy in developed countries and developing country, such as U.S.A., Germany andIndia, this text concludes the common aspects in fiscal subsidy, governmentprocurement and tax preference and also summarizes their difference in such aspectsas the way of government interference, degree of intervening. Checking through theabove-mentioned similarities and differences, this article concludes that fiscal andtaxation policies exerted by foreign countries have some reference meaning to ourcountry in developing renewable energy.Chapter four plays an important role in this article. On the basis of existingproblems of fiscal and taxation policy in our country and combining theabove-mentioned international reference meanings towards our country, this articlehas proposes policy guidelines in promoting the development of renewable energy.Those guidelines are that we must base on national conditions, conform to theprinciple of simplifying our tax system, coordinate the relation between equality andefficiency and use policies cooperatively. According to those guidelines, regarding tofiscal policy, this article proposes that setting up special fiscal fund to implement thepolicies, such as fiscal subsidy, government procurement, etc., could be considered tostrengthen degree of promoting the development of renewable energy. With regard totaxation, it also proposes that we should perfect value-added tax, tariff, corporateincome tax, personal income tax and some other relevant tax category to strengthenthe economical encouragement in promoting the development of renewable energy.