On China's New Energy Industry Support Policy

China is a major energy country,and both energy production and energy consumption are extremely huge.In recent years,pollution and resources shortage arising in the process of economic development has got more and more concerns.As a significant means of changing the mode of development,adjusting the energy structure and improving the quality of economy,the importance of new energy industry become increasingly clear.New energy industry in China is still developing,has not yet formed a relatively complete industrial structure and policy system.It faces many problems of technology and capital.For example,it is necessary to invest a lot of money in the research and development of technology;the costs of new energy are relatively high;and it is difficult to obtain a high market share in the energy market.Therefore,it is necessary to provide policy support for new energy industry.Until now,the Chinese government has promoted a series of laws and regulations on new energy and various support policies to boost the development of new energy industries,for instance,the "Renewable Energy Law" and other documents clearly stipulate that,the company use new energy sources such as wind power or solar power shall be subject to a added-value tax policy of 50% refund,price subsidies policies,R&D subsidies policies and project investment subsidies policies.At the same time,the government should encourage the participation of clean energy companies in the market.For those have been determined through market-based methods should be allowed to deduct from the power generation plan,the new energy power should be distributed according to the resource conditions of each region.These regulations and policies can be roughly divided into three major categories:strategic planning,fiscal or taxation policies and technical policies.It is not difficult to recognize from the evolution of the above-mentioned new energy industry policies that the policies on new energy industry is becoming more and more systematized and have certain operability and flexibility.However,in the game of the government and the new energy enterprise,the strategy selections of both sides will affect the result of policy support.Firstly,this paper builds a game model for the new energy industry and the traditional energyindustry to testify the necessity of support at this stage.After that,the return model of government and enterprises under different strategy choices is built.And on the basis of this concept,the model is extended to the expected return model of both sides based on stochastic selection scheme.It not only considers how the new energy industry will make decisions when the government supports it,but also the government's decision-making when the enterprise develops or does not develop,and then it analyzes the expected returns of the government and new energy companies under different strategic combinations.The analysis shows that the key factor in effect of government support is the effectiveness of new energy enterprises.The stronger the profitability of the enterprise,the higher the social income that can be brought to the government,that is,the higher the efficiency of the enterprise,the greater the expected opportunity income of the enterprise and the government,the better the support effect,and the more attractive the cooperation between the enterprise and the government.Whether the government's support policy will promote the development of new energy industry is the benefit of enterprises entering the new energy industry and potential new energy enterprises.It is necessary to pay more attention to the supply-side reform of the new energy industry and improve the efficiency of the new energy industry in order to solve the development problems of the new energy industry from the fountainhead.In this way,China will truly become a new energy power.In the last part,policy suggestions are made: improvement of market access standards,encouragement to the new energy enterprises which enhance corporate profitability and R&D capabilities,and the promotion of social recognition of new energy industry.