Analysis On The Incentive Effect Of Financial Subsidies And Tax Incentives In Reserach And Development Of Green Industry

When our country began to reform and opening-up from 1978,the economy of society develops fast still,but at the same time the issue of tacking resource pressure and environmental pollition becomes more and more urgent.What we have learned over so many years is that our fast development was built upon the selfish and relentless intake and exploitation of our mother earth.Thus,the development of human industry goes alongside with the destroying of the world's nature.The call of developing Green Iindustry(namely Environmental-Friendly Industry)is the result of human being's reflection of their acts on price of sacrificing the environment.Green Iindustry not only shoulders the economic responsibility of ensuring a healthy development of modern agriculture,industry and business services,but bears the non-economic responsibility of ameliorating our eco-environment,realizing a harmonious development between man and nature.On this paper,I study from financial angel and thorough understanding the concept?industry characteristics and classification of Green Industry,and then,I select Environmental Protection Industry and New Energy Industry to represent Green Industry.I also combine existing tax incentives and fiscal subsides with economic theory and empirical analysis method to explore the incentive effect of tax policy and fiscal policy on r&d investment of green industry,and then compare the utility of the two.The specific approach is to adopt literature survey?induction?data-collection methods?comparison and contrast?positive research and so on.Basrd on a large amount of literature has been reviewed and a large number of fiscal and taxation policies have been collected,.The data are obtained from the CSMAR and iFinD,which include total r&d expenses?the number of researchers?tax preference?fiscal subsidy?gross trading income and so on.Finally,it concludes that financial subsidies and tax incentives have certain incentive effect on r&d investment of Green Industry.At the same time,it is found that the incentive effect of fiscal subsidy policy is greater than that of tax incentive policy.Finally,in order to verify the accuracy of the empirical method,the stability test is carried out using the quantile regression method and the same results are obtained.This paper hopes to provide some reference for policy research and policy formulation in the field of Green Industry in the future.