China's Wind Power Equipment Industry Concentration

Wind power, as the fastest developed new energy with the most mature technology, plays an important role in the national renewable resources section of the "Twelfth Five-Year Plan". Development in wind power equipment industry is considered not only the decisive factor to the development of wind power industry, but also to whether or not the "Twelfth Five-Year Plan" the national renewable resources can be realized due to the fact that wind power is colected through wind power equipment, and that the later one consists70%of investment in the construction of wind farms. In recent years, China’s wind power equipment industry has shown rapid development in industrial policy support, for example, in2010China’s new wind power installed capacity in wind power equipment industry ranks first in the world, and four domestic enterprises enter the world’s ten strongest wind turbine manufacturing firm column. Along with the fast development goes several problems of Industrial over entry, overcapacity, non efficiency in the malignant competition. Moreover, compared to well-developed countries, China’s wind power equipment industry concentration is relatively low and the market structure not reasonable. In consideration of importance and problems in wind power equipment industry mentioned above, this research is expected to find the decisive factors that effect concentration degree in China’s wind power equipment industry and then to propose countermeasures and suggestions to improve to construct a reasonable market structure in China’s wind power equipment industry.Firstly the research summarized research status and related theories about industrial concentration both demestically and abroad, based on which, qualitative analysis of present situation in China’s wind power equipment industry and the variation trend in degree of industrial concentration are put forward. Through analysis on comparison with well-developed countries in wind power equipment, evolution direction of concentration degree in wind power equipment industry is explored. Regression analysis model about industry concentration degree is adopted to explore main factors that effect the industrial consentration. Result of the regression shows that, main factors that effect china’s wind power equipment industrial consentration degree are, in descending order of importance, market capacity growth rate, economy of scale and industrial policy. Influence of industrial policy is negative, while that of capacity of the market growth rate and economic scale is positive. Finally, according to the regression result, approaches used to raise concentration degree in China’s wind power equipment industry are put forward as the following. The first one is to increase market capacity in China’s wind power equipment industry; the sencond is to improve economy of scale of China’s wind power equipment industry; the third is to transformate and improve policy of China’s wind power equipment manufacturing industry.