The Study On The Influence Factors Of The Use Of Foreign Investment On The Biomass Energy Industry In China

The developing of biomass energy industry can not only ease the tense situation of fossil energy supply, optimize energy structure and protect national energy security; but also improve and protect the ecological environment. Meanwhile, it can expand agricultural function and increase farmers' income, which has a great significance for the achievement of sustainable development.However, currently the capital market in China is not perfect. Thus there is a huge funding shortfall in the development of biomass energy industry. On the other hand, some farsighted multinational companies who consider the saturation of the domestic markets as well as the supply cost of biomass resources and labors begin to seek new markets in developing countries, or produce abroad. This situation provides China with an unprecedented opportunity to the use of foreign investment in developing biomass energy industry. Faced with this situation, we should make full use of external forces. Introduction of capital from abroad not only can feed the funding gap as an expanding financing channel for the biomass industry, but also can bring advanced technology and the overflow of management experience from abroad, which is very useful to the development of China's biomass energy industry.This paper undertook the study from the perspective of impact factors for the use of foreign investment in developing of biomass energy industry.First, it summarized the current situation of the use of foreign investment in biomass energy industry. The scale of using foreign investment is growing; the origin of foreign capital is widespread; and the form of using foreign capital is increasing. However we should see the existing problems underneath the inspiring trend. The growth rate of foreign investment is still difficult to meet the need of development; the regional distribution of foreign investment is not balanced; compared with other new energy projects, biomass projects are still in lack of competitiveness; there are still some obstacles in foreign investment companies' entry to China. Then, it used Delphi method to build a comprehensive index system to analyze the various impact factors. On basis of Analytic Hierarchy Process, it measured the influence degree of various factors to the use of foreign investment in developing biomass energy industry. We found that, the most important factor which impact the use of foreign investment on biomass energy industry is the government policy, following by the cost, the potential of the upgrading in the industry and the market demand.Finally, based on the output of empirical analysis, it gave some useful suggestions, which included the establishment of sound policy and regulation system to promote industrial development; making efforts to reduce the operating cost of foreign-invested enterprises and raw material costs; increasing research and development; building and expanding a big-size Chinese biomass market.