Study On The Effects Of Subsidies For The Operation Of Photovoltaic Power Generation Industry

Since the industrial revolution, the development and application of fossil energy have become an indispensable driving force of economic and social. With the economic developing, the reserve of fossil energy reducing, more and more countries have begun to feel the energy crisis. Meanwhile, with the exploitation and use of energy, a lot of harmful emissions, they have become a serious threat to the ecological environment. So developing countries are researching and developing the application of new energy. Solar energy as a new clean energy has took the national attention. China is a big energy consuming country. The photovoltaic industry has been seen as a strategic emerging industry. How to develop the photovoltaic industry and expand the application of photovoltaic products are important to ease the energy and environmental constraints,change the industrial structure and achieve sustainable development.Completing PV industry chain means developing the photovoltaic power generation industry. The high cost of photovoltaic power generation has seriously hindered the rapid development of the industry; therefore, the development of photovoltaic power generation industry cannot do without the subsidy policy support. Our subsidies started late, most are learned from foreign experience. In recent years China’s photovoltaic power generation subsidies continue to adjust, but because of our lack of understanding of the effects of various subsidy policies, that leads to whether policy-makers or industry operators do not know how to do. In this case, analyzing the impact of photovoltaic subsidy policy is particularly important to the development of photovoltaic power generation industry in China.In this paper, the impact of photovoltaic power generation subsidies is the research object. Under the impact of subsidies, the changes of costs and benefits in photovoltaic power generation industry is the perspective. Research the effect of policy on the development of the industry from the impact of policies on the industry cost income. On the basis of the existing research analyzed the development of Chinese photovoltaic power generation industry. With the SWOT analysis method analyze the current situation of PV industry in china. In this paper I summarized the major subsidies over the years to find the principles, classification, policy changes and improvement process. Then I analyzed the problems of subsidies to prepare for the next analysis. In order to accurately analyze the impact of policies on corporate earnings, I took the cost and benefit analysis as the foundation, built the cost-benefit model for photovoltaic power generation industry. To determine the value of variables in the model I analyzed the relevant data. From installed subsidies, feed-in tariffs and tax subsidies I analyzed their impact on the cost-benefit of the model and then analyzed their characteristics and shortcomings. In the formulation and implementation of policies, because the purpose of policy makers is the national interest but the purpose of industry operators is profit, so they are different in purpose. Subsidies paid by the government, on the contrary, companies get subsidies. Therefore, I analyzed the interests, the decisions and the possible equilibriums between policy maker and industry operator with complete information dynamic game analysis. Finally, on the basis of the analysis results, combined with the industrial present situation I gave some relevant practical policy recommendations.