Government Support Policies And Their Performance In China’s Photovoltaic Industry

With the vigorous government support, China’s photovoltaic industry had achieved unprecedented fast expansion and significant industrial agglomeration. However, this prosperity did not last long as the shrinking market demand, severe overcapacity and company bankruptcy showed up in2011. These problems made us to reconsider the influence of government support for photovoltaic industry’s development. The study of reasonable supportive policy system and effective use of policy tool shows great significance in the healthy and persistent industry development.This research analyzes the present situation of photovoltaic industry in the main countries and the typical supportive policies. Then it predicts the performance of world’s supportive policies in free economic situation and policy-driven situation.Based on the policy texts, this study classifies policy tools in three angles which are industry chain, market penetration and policy tools. On the basis of existing research, the writer innovatively puts forward the three-dimension analysis framework of policy tools. These three classification standards are policy tools, industry activities and authority level separately. The statistical analysis of China’s supportive policy texts from1994to2014shows that supportive policy tools have not been effectively applied and distributed. The government has focused too much on supply and environmental policy tools and the stage of investment, production and consumption.Different supportive policies of photovoltaic industry in China have achieved various actual performance. Supply policy tools have obvious impact on short-term expansion and low economic efficiency; Environmental policy tools help to create a fair competition environment and to balance supply and demand; Demand policy tools have good cost-benefit performance and positive influence on industry development.Finally, the author puts forward the ideal "three stages" model for photovoltaic industry’s supportive policy system and the corresponding policy recommendations.