Research On The Policies Of Fiscal Subsidies In Electric Vehicle Industry Development

In China, after more than ten years’ development, electric vehicle industry hasbasically achieved the targets of transforming technology into products and productscommercial production, and enters into industrialization development stage step bystep. In consider of the obstacles that the industry still faced under currentenvironment like high price of electric vehicles, lack of market demands and so on,the industry can’t take shape in a short time. The requirements of the industrydevelopment are still not meet only by depending on regulation of marketmechanisms. Therefore, at the early development phases of electric vehicles industry,it is necessary that the governments make relative policies to support industrydevelopment, and the most common measure is industry fiscal subsidies. But howindustry fiscal subsidies promote electric vehicles industry development and whatproblems could be solved by the fiscal subsidies in the industry development process,are the main research contents of this thesis.The thesis focuses on the affections that industry fiscal subsidies take in electricvehicle industry development. Based on national and international research in relativearea, the paper firstly analyzes industrialization conditions and main obstacles inelectric vehicle industry, deconstructs the industry into three steps, technology R&D,production and marketing, and analyzes the affections that industry fiscal subsidiestake to these three steps from theoretical perspective. Then the thesis introduces thecurrent situation of fiscal subsidies policies in China, analyzes the characteristics anddeficiencies of these policies. Meanwhile, the thesis also sorts out the electric vehicleindustry fiscal policies of the developed countries systematically and summarizestheir characteristics. In addition, the thesis researches the effecting of fiscal subsidiespolicies take to electric vehicle sales volume growth using quantitative method fromdemonstrative perspective. At last, aiming at the industry development obstacles anddeficiencies of the current fiscal policies, and combining the effecting of fiscalsubsidies policies that already researched, it proposes to draft a sound and flexiblefiscal policy system that covered the whole electric vehicle industry chain.The thesis adopts archival research method to draw ideas and means fromnational and international research experiences, and adopts economics method to analyze externalities on electric vehicle’s production and consumption stages. Whendiscussing the facilitation that current policies effect on electric vehicle industrydevelopment, it uses the method of the combination of both theory and empirical way,and the combination of qualitative and quantitative analysis. Through the upwardmethods, the thesis basically has the following conclusion:1. Put forward the deficiencies of current electric vehicle fiscal subsidies policiesin China, such as imperfection of fiscal subsidies policy system and unreasonable ofcompany capacity evaluation and subsidies competitive bidding mechanisms.2. Summaries the main effects that fiscal subsidies policies take to the Chineseelectric vehicle industry from the perspectives of industry-chain. Come to aconclusion that fiscal subsidies which focus on electric vehicle industry technologyR&D and marketing steps have a significant effect in increasing sales volume ofelectric vehicle product, by using the analysis method of the panel data multiple linearregressions.3. Put forward the fiscal policy suggestions that suitable for China’s electricvehicle industry development: to draft sound and flexible fiscal policies and to set upa fiscal policy system that cover all steps on electric vehicle industry chain.