Research On Fiscal And Taxation Policies For Promoting The Development Of Coalbed Methane In China

Along with the rapid development of the global economy and the improvement of the degree of industrialization, the energy demands are sharply increasing in many countries, especially in some developing countries, like China. The exploitation of CBM has special importance and urgency for resource utilization in our country. As the major area of exploiting CBM in China, Shanxi Province has obtained certain achievement on the exploitation of CBM in recent years. But on the whole, it is still in the primary stage of development. On the basis of the basic theory of market economy, the fiscal and taxation theory, the experience of CBM exploitation in foreign countries and the actual case study of the exploitation of CBM in Shanxi Province, this article holds that the fiscal and taxation supportive policy is extremely important for CBM development in the early stage.This article has made some comments on the theoretical literature related to the domestic and foreign development status of CBM and the research status of fiscal and taxation policies. And according to the literature analysis method, this paper introduces the development status of CBM in China. In contrast to natural gas, this article analyzes the current contradiction between supply and demand of natural gas in our country. The article also predicts the production of CBM in the next five years of our country by using ARM A model. And then, the paper analyzes the future development trend of CBM in our country and the important role which CBM has played on the part of strategy of resources, all of which have provided realistic basis for the fiscal and taxation supportive policies. Based on the document analysis method, this article also summarizes the deficiencies in the existing fiscal and taxation supportive policies for the exploitation of CBM in our country. Then taking Shanxi Province as an example, the paper analyzes the effect of the fiscal and taxation supportive policies of CBM in our country by using the fuzzy optimization method. In the meantime, according to the existing fiscal and taxation supportive policies for CBM development in our country and some project examples in Y area of Shanxi Province, the paper has calculated the economic value added (EVA) of the project and the internal rate of return to analyze the effect of the existing tax policy, and then to verify the shortcomings of the fiscal and taxation policies what were mentioned above. Given the deficiencies in the existing fiscal and taxation supportive policies and the fiscal costs each policy needs, the paper has designed several schemes on the foundation of real evidence and scenario analysis, and also compares and analyzes the effect of each scheme, in order to get the most reasonable and practical hypothesis of fiscal and taxation supportive policies. At last, considering the insufficiency of the fiscal and taxation for the development of CBM, the article draws lessons from the experience of the supportive policies for CBM in foreign countries, and puts forward some policy suggestions related to the development of CBM industry from two aspects:finance and tax concessions.Not only does the fiscal and taxation supportive policies this article has put forward for the development of CBM have a certain significance for Shanxi Province to make policy during its infancy of CBM development, but also for the formulation of the fiscal and taxation preferential policy in other regions of our country.