The Research On The Problem Of Overcapacity Of The Photovoltaic Industry In China

China’s economy is developing rapidly.At the same time,it also faces various problems. Overcapacity is one of them. During the period of the adjustment of China’s industrial structure,the outstanding problem is overcapacity.It is also a difficult problem plaguing the healthy development of China’s economy over a long period of time.In September 2010, the State Council considered and adopted "the decision of the State Council on accelerating the fostering and development of strategic emerging industries".It declared the prologue of the development of seven strategic emerging industries.With the current global environmental pollution and energy crisis becoming more and more serious, all localities promote the low carbon economy actively.The photovoltaic industry,because of its renewable resources, direct conversion and clean use,is considered as the most promising industry in the field of new energy. However,the problem of excessive competition and redundant construction has appeared in the PV industry in our country since it sprang up a few years ago.It has also faced the crisis of overcapacity along with the high speed development. Therefore,it has very important practical significance to study the problem of overcapacity of the photovoltaic industry. This paper uses the relevant theory and method of western economics, industrial economics and econometrics to study and analyze the problem of overcapacity of the photovoltaic industry in our country.It focuses on the analysis of the causes of China’s PV industry overcapacity, puts forward the corresponding solutions, and finds out the coping strategies, in order to provide reference and recommendations to enhance the photovoltaic industry development level and relieve excess capacity. Simultaneously, it is the certain model significance for the development of other emerging industries.Firstly, by using the production function method,it calculatesthe capacity utilization of our PV industry, so as to calculate the overcapacity rate. Then it analyzes the causes of the PV industry overcapacity from the three aspects. Different from the previous theoretical and empirical analysis based on relevant government policy and the macro economic environment, this paper analyzes the causes of the PV industry overcapacity by statistical analysis and empirical analysis.The result shows that three main causes of the PV industry overcapacity are the excessive dependence on foreign markets,the low development trend of the industry and the excessive stimulation of the government.Based on the above analysis, this paper puts forward three ways to resolve the overcapacity of PV industry in China.lt is time to expand the domestic market,pay attention to self-dependent innovation and set standards on intervention behavior of government regulation to the industry investment. Only in these ways can we promote the healthy development of the PV industry and other emerging industries in the long-term.