Effects Of Government Policies For Supporting The Photovoltaic Industry

With the increasing crisis of energy and environmental, Many countries began tosearch for emerging energy sources to improve the current energy structure. Due to itsspecial characteristics, the photovoltaic industry are positioned as strategic newenergy industries by many developed countries In order to promote the developmentof photovoltaic industry, most of them have adopted policies to support theinternational PV market thus are developing very well. Because of international PVmarket, China’s PV industry has been through rapid development. Meanwhilephotovoltaic industry also faces some problems, such as serious homogeneity withinthe industry, heavily dependent on international markets. These issues becomeinstability in the domestic photovoltaic industry development process.As strategic new energy industries, whether photovoltaic industry can get healthyand rapid development, is to see whether the government can make and designreasonable industry development policy. In this paper, we first have made acomparative analysis of developed countries (Germany, Japan, United States); thenusing event analysis method to analyze Listed companies’ s share price in PV industryin the U.S. and China, on which make effect judgment for photovoltaic industry. Inthis paper we select nine listed companies in American stock market and eight listedcompanies in China. Due to the size of these enterprises can cover almost the size ofChina’s photovoltaic industry, therefore the impact on these companies of policies canbe seen as the overall impact on the industry. The basic mechanism of event analysismethod is: Assuming rational market, the impact of an event will be quickly reflectedin the price of security. Therefore, to measure the impact of the event by the priceperformance of a relatively short observation period of time. Market volatility canreflect investor’s future expectations, but the real impact that industrial policy needssome time to test. Volatility can be discounted real impact that industrial policy to short after the incident. In the time zone of the event, rising market price shows thatthe market (investors) have faith on it, which means PV industry policy give positiveimpact on PV industry. Through strict empirical calculation, we discovered that afterthe government released the text of the selected PV industry support policies, the PVsector stock prices (mainly listed companies in the united states) have significant rise,indicating that investors are very optimistic about the future of the PV industry thatnow make investment decisions in the future PV industry can benefit, while thelong-term impact of policies on industrial investment decisions are now discounted onthe moment.The impact of industrial policy are usually long-term, here we choose the shorttime perspective, and analyze the current way of different countries’ PV industrydevelopment, to analyze the effect of policies to determine the photovoltaic industry.Here we give some advice policy. First, explore the domestic market actively.Through the PV system using a terminal subsidies, driving demand for photovoltaicproducts. Second, increase R&D support. Establish national integrated photovoltaictechnology research and development institutions, together with the expertorganization to promote solar technology innovation and enhance China R&Dcapabilities. In addition, the development of China PV industry can provide technicaland strategic advice on policies. Third, to improve industry access standards. Raisethe standard of the industry access to research and development and technicalcapabilities, environmental standards and other indicators to strengthen the guidancefor the photovoltaic industry, rather than through direct subsidies or administrativeintervention. Fourth, establish PV market information platform for other ways tomonitor the situation on the domestic and oversea PV market.