The Government Intervention in the Development of New Energy Industry: The Boundary of Responsibility and Policy Tools

Abstract

Market allocation mechanism plays a key role in the development of new energy industry .but also cannot do without the support of the government, this paper emphasizes that the government should pay attention to the fundamental role of the market when deciding its own responsibilities. Guiding the industrial layout and coordinate between government investment and private investment is the main responsibilities of government in the development of new energy industry. The paper points out that increasing financial subsidy, encouraging the government procurement and improving tax expenditures are important policy tools to realize government intervention targets.