Research On The Fiscal And Taxation Policies To Promote The Harmonious Development Of China’s Photovoltaic Industry

With the problem of global energy shortage and environment pollution becoming more and more serious, the application of renewable energy has drawn the attention of many countries. Safe and reliable, noiseless and low-pollution, the abundant solar energy resources are considered the most potential renewable energy. The best way to utilize solar energy is through photovoltaic conversion. Hence, Photovoltaic Industry is highly valued by the world and has developed very rapidly in recent years. However, Photovoltaic Industry in China has suffered from many difficulties during development for it is still in its infancy, and from market failure, which is caused by the positive exteriority in itself as well. In order to promote a healthy development of China’s Photovoltaic Industry, it is necessary to improve the relevant fiscal and taxation policies. By studying the fiscal policy deficiencies of China’s Photovoltaic Industry, and simultaneously referring to the experiences of developed countries, the dissertation puts forward several suggestions which are suitable for China’s national conditions from the perspective of policy.Through the combination of theoretical analysis and comparative analysis, this paper goes through the main problems of the Photovoltaic Industry in China and analyzes the fiscal and taxation policy deficiencies related to these problem reasons. It also studies and learns from fiscal policies of Germany, Spain, the US and Japan. In the end, it puts forward several fiscal and taxation suggestions to improve the development of Photovoltaic Industry in China on the basis of the analysis on both domestic and foreign policies of Photovoltaic Industry. The suggestions are listed as follows. Firstly, it should set up the subsidies of demand orientation to promote the development of the industry by promoting grid photovoltaic, improving the feed-in tariff policies, encouraging residents installs PV equipment and so on. Secondly, increase financial investment and implement the rules, that is to say, establish and improve national photovoltaic R&D centers, personnel training system and quality specification system. Thirdly, government should expand its demonstration role through government procurement and raise public awareness to promote the demand of photovoltaic products. Last but not the least, optimize tax incentives, synthesize and regulate different types of taxes, such as value-added tax, income tax, customs duties, and export tax to promote the balanced development of the industry.