An Empirical Study On The Effects Of The New Energy Industry’s Policy

The development of new energy has got universal attention by theworld. In many countries the development and utilization of new energysources has become an important way to improve energy security, dealwith climate change and carry out the sustainable-energy strategy.Throughout the world, the experience of developing new energy industrycan be roughly summed up into three main features: First, strengthenlegislation and protection from the law; second, make detail industrialplan and development goals; third, draft industrial incentive policies,including financial subsidies, tax incentives, tariff subsidies andlow-interest loans. During the "Eleventh Five-Year" period, China’s newenergy industry includes wind, solar and other new energy industry hasexperienced the rapid growth. In the process of the development of newenergy industry, most firms still took the old measures like “importequipment and expand capacity" which makes the new energy industrydevelopment path repeat the mistakes of the traditional industries. Afteryears of supporting in new energy industry, how big success has thedevelopment achieved, how to promote the industry to develop healthily and rapidly in the future, has become the focus of academia andgovernment. What facts should the government take into consideration inpushing the new energy to industrialization and large-scale? How muchinterest had new energy firms in the wave of development and how toquantify the effect of government policy?According to the results of theoretical studies of the domestic andforeign research, this paper cross-section data between2007-2010toanalyze the new energy firms with event study method. We come to theconclusion that the list of policy has a positive effect on the firms. Thearticle also calculated the impact of the market value brought to the newenergy firms by the promulgation of policy by, in order to quantify theeffects of policies. Meanwhile, we try to explain the cumulative abnormalreturns caused by the policy issue. After empirical study we found thatinvestment in r&d and focus point of government policy play animportant role in explain the change of cumulative abnormal returns,which have a more profound implication for the future industrial policies.