Motivation And Effect Of Government Subsidizing New Energy Automobile Industry

Government subsidies are one of the policy tools to support industrial development.They played an important role in the beginning of China's automobile industry.In 2009,the new energy automobile industry was listed as one of the seven strategic emerging industries.The central and local governments gave consumers and producers huge subsidies to promote the use of new energy vehicles.Through the theoretical analysis of industrial chain deconstruction and central-local government relations,this paper expounds the differences between the central government and local governments in subsidy targets and how government subsidies affect the economic,social and innovative benefits of listed companies.Then combined with the micro data of the new energy vehicle listed companies in 2011-2017,empirically study the motives and effects of government subsidies.The research results show that there is a difference between the central government and the local government's incentive motivation.The central government is more concerned about energy conservation and emission reduction and industrial structure upgrading,while local governments are more concerned about the economic development of the region.It proves that the local government promotes the local economy in the name of protecting the environment and conserving energy.Through the empirical analysis of the economic,social and innovative benefits of listed companies of new energy vehicles,it is found that the effect of government subsidies on economic benefits is not obvious,but it has a significant role in promoting social benefits and inhibits innovation benefits.Finally,based on the research conclusions,this paper puts forward some policy recommendations to promote the healthy development of the new energy automobile industry.In the current imperfect institutional context,government intervention is still very necessary.When strategic emerging industries have a small proportion in the entire national economy,direct subsidies by the government can rapidly expand market share,but as the market share of new energy vehicles expands,continuing subsidies will bring financial burden to the central and local governments.Therefore,it is an irresistible trend to use the market to subsidize new energy auto companies spontaneously.