Financial Incentive Policy Simulation In China's Photovoltaic Industry

Traditional fossil energy accounts for a large proportion in China's energy consumption structure,and the environmental problems caused by it are also worthy of attention.Photovoltaic power generation can effectively improve the energy structure and reduce environmental pollution.At present,the traditional financial model cannot meet the financing needs of the photovoltaic industry,and China's photovoltaic industry is facing financing difficulties.Therefore,financial and relevant incentive policies are of great importance to the development of the photovoltaic industry.Based on the comparison of incentive policies of the photovoltaic industry at home and abroad,and in view of the financing difficulties of the photovoltaic industry,this paper proposes a photovoltaic incentive policy innovation mechanism with financial policies as the core and other supporting policies as the supplement,including financing support policies,government subsidy policies and carbon emission trading policies.This paper analyzes the game relationship between the residents with the goal of maximizing economic benefits and the government with the goal of maximizing social welfare.This paper further establishes a government-resident net benefit analysis game model for photovoltaic projects,in which the influence of different incentive policy innovations is studied.The equivalent model is then presented to obtain the optimal level of incentive policy innovation and relevant conclusions are proposed based on the model results.The research results show that the innovation of financing support policy,government subsidy policy and carbon emission trading policy have positive effects on China's photovoltaic projects.The following conclusions are drawn :(1)not all regions are suitable for the construction of photovoltaic projects;(2)the effect of green loan innovation policy decreases with the decrease of interest rate;(3)excessively high subsidies are difficult to give play to the optimal effect of the policy;(4)the Chinese government and society need to pay more attention to the environment.The research results of this paper provide a reference for China to formulate incentive policies for the photovoltaic industry,as well as for other renewable energy policies.