Study On The Effect Of Government Subsidy On Total Factor Productivity Of Photovoltaic Industry

As an important development direction of global energy revolution,solar photovoltaic has great development potential and will become an important alternative to fossil energy in the foreseeable future.Therefore,the Chinese government attaches great importance to the development of photovoltaic industry and lists it as a strategic emerging industry to give priority to support.In this context,photovoltaic enterprises get a lot of government subsidies.However,in the process of the government's support for the development of photovoltaic industry through subsidies,there are also a variety of chaos.For example,enterprises cheat and supplement through packaging project qualification,misappropriate for other purposes after obtaining subsidies,and blindly carry out lowefficiency expansion,which once led to overcapacity of photovoltaic industry,declining efficiency,and stagnant research and development level.The reason is that the photovoltaic industry has a large demand for capital and a long return cycle.At present,the innovation environment in China is not good.The private cost of R & D is far higher than the social cost.Enterprises are likely to take rent-seeking behavior in order to obtain considerable government subsidies.In addition,the process of government subsidies is not transparent and the regulatory system is not in place,which also provides fertile soil for the rent-seeking behavior of enterprises.In this case,whether the government subsidies can achieve the original intention of the policy,promote the research and development innovation level of the photovoltaic industry,and improve the total factor productivity of the photovoltaic industry has become a problem worth pondering.This paper reviews the literature and theories about the relationship between government subsidies and TFP.Firstly,it analyzes the development status of photovoltaic industry and government subsidy policies.Secondly,based on the industry development status and rent-seeking theory,it analyzes the mechanism of government subsidies on TFP of photovoltaic industry,and puts forward research hypotheses.In the aspect of empirical research,this paper uses the data of photovoltaic listed companies,uses LP method to measure the total factor productivity of photovoltaic industry in China,and uses fixed effect model to analyze the overall effect of government subsidies on the total factor productivity of photovoltaic industry.The empirical results show that the overall effect of government subsidies on the total factor productivity of photovoltaic industry is inhibited.Furthermore,this paper classifies photovoltaic enterprises into state-owned enterprises and non-state-owned enterprises,and finds that government subsidies significantly inhibit the improvement of TFP.In order to analyze its mechanism,this paper introduces rent-seeking cost as an intermediary variable,and discusses the role of rent-seeking activities in the government subsidies to inhibit the total factor productivity of photovoltaic industry.It is found that government subsidies will aggravate the rentseeking activities of enterprises and increase the cost of rent-seeking,thus hindering the promotion of total factor productivity.According to the research conclusion,the government subsidy has a significant inhibitory effect on the total factor productivity of photovoltaic industry,which is closely related to rent-seeking activities.Therefore,based on the conclusion,this paper puts forward some suggestions on the government subsidies from the aspects of subsidy standard formulation,post review and subsidy withdrawal,in order to promote the healthy development of photovoltaic industry.