Research On The Impact Of Government Subsidies On The Development Of Photovoltaic Industry

In order to achieve the goal of the transformation of the economic development and the supply-side structural reform,the Chinese government strongly supports the development of the photovoltaic industry and uses various subsidies to promote the construction of the photovoltaic industry.With the strong support of the government,China's photovoltaic industry has indeed achieved rapid development,and made outstanding contributions to China's energy structure transformation and economic green sustainable development.However,as a sunrise industry,the photovoltaic industry has gone through terrible overcapacity which is usually happening in traditional industries.Blindly expanding production capacity,over-reliance on government subsidies,and lack of technical core competitiveness have led to structural overcapacity.On May 31,2018,the three ministries and commissions issued a notice to speed up the subsidy,and stop subsidies for new projects.After the New Deal came out,it caused a fierce response and the controversy continued.In this context,according to the characteristics and characteristics of China's photovoltaic industry,look for the correlation and impact of overcapacity in government subsidies,explore reasonable support and subsidies,and achieve deepening of photovoltaic industry's de-capacity,green and low-carbon development.Supply-side structural reforms have important implications.The article begins with the production function method to measure the overall capacity utilization rate of the photovoltaic industry,and initially obtains a statistical description of the overcapacity in the photovoltaic industry.The photovoltaic industry is divided into upstream,midstream and downstream.and production capacity utilization rate is quantified respectively.The phenomenon of overcapacity in the photovoltaic industry;Secondly,the article focuses on the reasons of overcapacity in the photovoltaic industry from the perspective of government behavior,and explores the correlation between government over-subsidization and overcapacity in the photovoltaic industry.The government's excessive intervention has led to market failure,and the reason behind this is the political system design with Chinese characteristics,that is,the centralized system of decentralization.The local government has led to the expansion of industrial support for the pursuit of short-term performance.The estimation method empirically returns the panel data of 39 listed companies,and it is concluded that government subsidies have a significant correlation with overcapacity.From the analysis of the research conclusions of this paper,to solve the overcapacity problem of China's photovoltaic industry,it is necessary to take the right medicine and take targeted measures for the upper,middle and lower reaches of the photovoltaic industry chain in which the enterprise is located.Through mergers and acquisitions,clearing away redundant capacity utilization,promoting factor market reform,raising the threshold for investment loan financing,increasing the capital ratio of fixed asset investment projects,and increasing investment in research and development of core technology in order to innovate With high technology as the core competitiveness.