The Research Of Fiscal Subsidy Policy Of Promoting The Development Of China’s Environmental Protection Industry

Since the global economic crisis, the dual issues including "growth slowdown" and "structural adjustment" appeared in China and the economic transformation has become the primary task. At the same time, the haze weather, drinking water security and soil heavy metal problem has become increasingly obvious in China recently, the development of environmental protection industry is imminent, and considering the development of China’s environmental protection industry and its own characteristics, it is necessary to use the fiscal policy to safeguard the development of environmental protection industry. As fiscal subsidy is an important part of fiscal policy, this paper will focus on the fiscal subsidy policy of promoting the development of China’s environmental protection industry. This study not only provides a theoretical basis and practical guidance for fiscal subsidies to promote the development of environmental protection industry, requests for the economic and social transformation, but also is an important measure to implement the sustainable development. While improving the environment, solve the employment problem for the surrounding areas.This paper studys the fiscal subsidy policy of promoting the development of China’ environment protection industry by using the methods of theoretical analysis, empirical analysis and comparative analysis. First, put in order the fiscal subsidy polity on promoting the development of China’s environmental protection industry, find the problems and analyze the reasons. Then through empirical analysis, select datas between 2010 and 2014 about 22 listing environmental protection industry’s corporations from the Wind database,establish two panel data models.And the model one does research on the relationship between the proportion of fiscal subsidy in the main business income and the profit rate of the main business of the enterprise, the conclusion shows that the financial subsidy can promote the development of environmental protection industry, and the model two is about whether the distribution of scientific research, production and incentive subsidy is reasonable after the subdivision of fiscal subsidies, it is concluded that the distribution of the three kinds of subsidies is not reasonable, we should increase research subsidies. Finally, through the comparative analysis, the author studys the fiscal subsidy policy of the United States, Japan, Germany, and combined with the stage of the development of China’s environmental protection industry and social environment, draw lessons from the experience. Through the analysis of the full text, the author puts forward suggestions on the fiscal subsidy policy to promote the development of China’s environmental protection industry, argues that the government should increase the fiscal subsidy of the environmental protection industry,improve the level of scientific and technological research and development; enrich the investment and financing channels, establish a reasonable distribution system of investment and financing; to adopt a diversified way of financial support, improve the efficiency of the use of funds.There are two innovations in this paper. First of all, the innovation of the research direction. Most scholars have studied the fiscal subsidies policy to promote the development of other industries or environmental protection industry’s fiscal and taxation policies, no special research on fiscal subsidy to promote the development of China’s environmental protection industry. Second, divides the fiscal subsidy in the empirical analysis. Select scientific and research subsidy, production subsidy and reward subsidy as explanatory variables, but most scholars choose the total amount of fiscal subsidy as explanatory variables. Because of the limited research capacity, no more specific research content is studied in this paper. For example, increase financial subsidies, improve the scientific research level, this paper doesn’t specifically explore how to set up scientific research, production and reward subsidies proportion, and mentions to establish performance evaluation system in the suggestion part, but no specific research is done on the performance evaluation, and how to set up the index is also unsolved.