A Study On The Influences Of Government Intervention On The Photovolatic Industrial Overcapacity In China

Since the reform and opening up,our economy has enjoyed a radical development,but at the same time our economic development has been plagued by the problem of overcapacity.During overcapacity in the traditional industry has not yet been resolved,overcapacity also appeared in some strategic emerging industries with varying degrees,and it seriously hampered the further development of China's economy.Therefore,It is of great significance for optimizing our country industrial structure,and promoting the sustainable development of economy by Studying the reasons abou the formation of overcapacity,and finding the corresponding solution.Solar energy is clean,pollution-free and inexhaustible.In the current background of resource depletion and increasingly growing environmental pollution,the photovoltaic industry will be the choice of industry development in the future,and many counries government will pay high attention to it.Microeconomics points out that the market failure would happen due to the defects such as monopoly,externality and information asymmetry,in this time,we just need the government by this "visible hand" to intervene in the economy,make up for market failure,achieve the goal of national macroeconomic regulation and control the economy.According to the cost-benefit principle,government intervention also has short board.If the government intervention appropriately,it can promote the optimal allocation of resources,and make the economy to achieve the Pareto Optimality condition.But considering our country's actual conditions,due to the "corporation" trend of local government,land property right is fuzzy,and the soft budget constraint in,in the process of intervention in the economy tends,the local government always ignores the cost-benefit principle,and beyond government intervention boundaries and it led to government intervention in failure.As strategic emerging industries,the Chinese government has introduced a number of policies and measures to support the development of photovoltaic industry.No doubt,at the beginning of the photovoltaic industry development,it plays an important role that the government intervention on the rapid development of photovoltaic industry.However,with the further development of photovoltaic industry,many local governments ignore the product market demand,and still vigorously for PV projects,it cause excessive investment of PV industry,Products supply far beyond market demand,which leads to the photovoltaic industry appeared serious overcapacity problem.This dissertation will discuss the impact of our government's improper intervention on the overcapacity of PV industry from the aspects of government subsidy,distortions of land cost price and financial support level,and divide the PV industry into three parts:upper,middle and lower,and use the production function method to measure the production efficiency of each production and in the whole industry,and studies the effect of government improper intervention on the overcapacity of PV industry.Research results show that the government always crosses the line,which lead to failure of government intervention,and exacerbate the photovoltaic industry overcapacity problem.Based on the empirical results of the analysis,this dissertation argues that the government should improve government performance appraisal system,accelerate reform of the factor market,strengthen the financial budget constraints,speed up the adjustment of industrial structure and Improve the industry innovation environment,in order to improve China's photovoltaic industry overcapacity problem.