Research On The Effect Of Financial Subsidy Policy In The Development Of China’s New Energy Vehicle Industry

Since the publish of “Ten Cities and Thousand Vehicles” pilot subsidy policy in 2009,China’s new energy vehicle industry has developed rapidly,and it has become the world’s largest vehicle market.Though possessing in leading stage of sales and production,China still falls a long way behind from top-standard countries in terms of industrial core technology level.The key to industrial development lies in the improvement of the technological level caused by the R&D activities of enterprises,while the R&D activities have positive externalities and risks leading to market failure.Therefore,the government needs to exert its "visible hand" strength to correct its externalities and promote the enthusiasm of R&D activities.Taking fiscal subsidies and R&D activities of NEV industry as research object,this paper observes the necessity as well as the process of the fiscal subsidies from the theoretical perspective.In addition,this paper summarizes relevant policies of NEV industry domestically and externally in recent years.Using 2008-2016 micro-enterprise panel data of China’s NEV industry listed companies,the empirical research part examined whether fiscal subsidies could boost the enthusiasm of R&D activities,considering factors such as ownership and industrial differences.This part come up with several conclusions: increase in fiscal subsidies has stimulated the enthusiasm of enterprises to invest R&D activities;fiscal subsidies draw no significant difference among all kinds of NEV enterprises in the promotion of enthusiasm;there are differences on the effects of fiscal subsidies between different sub-industries.On the basis of the above research,this paper puts forward some empirical evidence and policy recommendations for China’s industrial policy formulation to further promote the research and development of NEV industry in the future,such as refining subsidy standards,giving additional subsidy to the core component industry and basic research,expanding funding channels,and improving the regulatory system.