Study On The Fiscal And Taxation Policy Of Building Energy Efficiency In China

Energy shortage and environment disruption have been the global issues incontemporary era, which have drawn worldwide attention. The Chinese governmentattaches great importance to and actively promotes energy conservation. As animportant field of energy efficiency, building energy efficiency (BEE) is an importantpart of our strategy to achieve energy conservation. As one of main levers ofgovernment’s macro regulation, it becomes a key issue of emergence for fiscal policy tostimulate enthusiasm of the market players, who should make contribution to promoteBEE. This paper applied various research methodologies such as qualitative andquantitative analysis, theoretical and practical analysis and literature review to study onthe policy of BEE. According to actual situation of China’s BEE, provided a theoreticalbasis and policy recommendations of BEE in the perspective of finance and taxation.BEE has the characteristic of externality and incomplete information, which leadthe construction of energy-efficient products deviate from the optimal configuration. Atthe same time, analyzed fiscal and taxation means is the most effective means topromote the development of BEE. Although BEE in our country has made someachievements in some aspects, total construction is rising because of the process ofurbanization and improvement of resident consuming level at the same time. Theproblems of BEE have highlighted, such as large energy consumption, low energyefficiency and slow progress. In order that these problems can be solved, one of theeffective approaches is to strengthen the efforts to policy support. Then summarized andcommented on the existing BEE policy, and pointed out that incentive effect is weak,incentive range is narrow, defect exist in the aspect of design and application, therelevant supporting policies need to be improved as well.The government, developers and consumers are three main participations in BEE;this article carries on the gambling analysis to study on the relationship of them. Andthen drew on the experience of developed countries in fiscal and taxation policies inBEE. Based on the current situation of fiscal and taxation policy in China and putforward suggestion for promoting BEE in China in the perspective of finance andtaxation. The measures include implement tax deduction and exemption to developersand consumers, such as personal income tax and business income tax; improve theusage efficiency of public fund; given financial subsidies to developers and consumers; expand the scale of government procurement; take into account the laws and regulations,propaganda and education.The main conclusions and innovation point of this paper are as follows: Firstly, usethe market failure theory to analyze the solution in BEE, proposed the implementationof fiscal and taxation policy is an important means to promote BEE. Secondly,according to the government, developers and consumers gambling reached theconclusion that the government incentive policy will affect the developer and consumerchoice, which is helpful to advance the development BEE. Finally, the governmentcould combine with the personal income tax reform to give tax preferences toconsumers, and introduced tax credit mechanism when buying energy efficiencyproducts. The government could take the "back slope mechanism" as a measure offinancial subsidy to guide the development of BEE.