The Externalities of New Energy Industry and Correction Suggestions

Abstract

At present, the development of new energy industry has the great significance in optimizing the energy structure and energy security and increasing energy supply in China. In the new energy industry development process existing obvious external effectiveness, make the competition market resources allocation efficiency losses, resulting in deviating from the Pareto optimal state that cause "market failure". According to the general principles that externalities cause resource allocation misconduct eliminate, from an economic point of view that this article point out that the decrease of the cost of production and the increased output efficiency could play the same role in resource allocation efficiency improvements, and through government intervention to make the necessary corrections to optimize the allocation of resources to ensure the development of new energy industries.