A Study On The Incentive Effect Of Financial Subsidy On Clean Energy Development

Energy is the guarantee of economic development. As the focus of attention andopposed to the high prices of traditional energy sources and characteristics of highpollution and limited and non-renewable, development and utilization of clean energyis more in line with the needs of sustainable economic growth with environmentalprotection.Clean Energy is currently the most widely used in the field of powergeneration.Not only by traditional thermal power coal price impact, but also caused aseries of pollution does not conform to requirements of the national energy savingpolicy. The generation companies with conventional thermal power has the need ofdeveloping clean energy itselves. The government as economic managers and stateadministrative affairs manager, in order to achieve economic policies anddevelopment objectives of countries and regions. Government plays an important rolein guiding the process of industrial development. Government subsidies are aneffective means of intervention in the economy. It is widely used around the world.This article is based on the theory of asymmetric information theory and thetheory of externalities. Development of clean energy needs depend on thegovernment’s power, because relying solely on market mechanisms can not solveproblems. This paper use case study method and comparison method. Select twocompanies to study. The amount of financial subsidies of these two companies is quitedifference. By contrast with the vertical and horizontal, study the incentive effects offinancial subsidies from several aspects, they are strengthening the investment amountand production scale of enterprises technology innovation, competitiveness, andmicro-enterprise performance and so on. Currently, scholars usually used empiricalresearch methods, data used to study the economic effects of financial subsidies. Inthis paper, in-depth internal analysis of subsidies for clean energy developmentincentive effect. The enterprise analysis, concluded that financial subsidies canpromote the development of clean energy, and subsidies to large companies showingbetter results.Full text is divided into seven parts. As a start is the introduction, mainly aboutthe research background and significance, as well as research to define the content and methods of basic concepts in this article. The second part is part of the literaturereview, it describes the related research achievements. The third part of thepositioning of the theoretical basis of government subsidies, mainly expounds therelated theory, such as externality theory and information asymmetry theory. Thefourth and fifth parts are the cases study of two companies to get the different amountof government subsidies, if they have different incentive effects.The six part bycomparing the two companies with the same industry data to see whether subsidiesfor clean energy reached the goal. The seventh part is the basic conclusion andinspiration.