Amount Of Subsidy Research Articles

지방자치단체의 불용액 현황

This article examines local goverment’s unused-spending status-quo by defining unused-spending concepts based on theoretical approach and highlighting the relationshp between central-local financial actitvities.
 As a result, we argue that the perception of local government’s unused-spending depends largely on how organizational performances are; there are different approach between agent theory approach and resource based view approach. we found the external factors increasing the unused-spending at the relationship between local government and central government’s department. Local governments’ financial autonomy depends largely on the amount of subsidy from central government’s project. This relationship influences the growth of the unused-spending by rapid project process short time lag to spend budget implementation. Also, it reduces local government’s creative budget plan before receiving the subsidy.
 we suggest policy alternatives to manage the unused-spending amount at local government. Our suggestions is about the improvement of the special fund account by using sunset law that designate the termination of governmental program unless the legislature affirmatively acts to renew it.

Differential Game Analysis of Emission Reduction and Preservation in the Tertiary Food Supply Chain under Different Government Subsidy Models

Climate change has brought about huge environmental problems and economic losses worldwide, and low carbon has become a hot topic of research in the context of the climate crisis. The article outlines a three-tier food supply chain consisting of suppliers, manufacturers and retailers, based on a cooperative model in which manufacturers share the cost of emission reduction and retailers share the cost of freshness. The study finds that when the government grants the maximum amount of subsidies to the manufacturer, the government’s decision to reduce emissions, the government’s regulations to preserve freshness, and the government’s profits are not affected. The study found that when the government awarded the largest subsidy coefficient to manufacturers and the smallest subsidy coefficient to retailers, the non-specific one-off government subsidy model could lead to higher profits for suppliers, manufacturers, and retailers, increasing the amount of emission reduction while improving the preservation quality of food. When the government subsidy factor for manufacturers is minimal, the reduction in emissions is greater under the government’s dedicated abatement subsidy model but does not increase the freshness quality of the food; food supply chain players consistently produce higher levels of preservation effort and preservation quality under the government’s non-dedicated one-off subsidy model.

Analysis of Recycling Strategy of Waste Power Batteries Driven by Government Subsidies

Government subsidies play an important role in the government's effective regulation of the whole industry and in promoting better economic development. This paper introduces channel intrusion into reverse supply chain, applies it to closed-loop supply chain of power battery, and discusses the recycling strategy of waste power battery driven by government subsidy. Based on the key factors affecting power batteries, a tripartite game model of government, recyclers and consumers is constructed. There are government intervention modes such as supervision and subsidy in power battery recycling. Based on government supervision, this paper studies the influence of subsidy on decision-making of recyclers and consumers, so the government has two behavior modes: "subsidy" and "non-subsidy". The example analysis shows that the low amount of government subsidy has a strong incentive effect on improving the recovery rate of power batteries, but it has no obvious effect on increasing the sales of new energy vehicles. The high amount of government subsidies has obvious incentive effect on increasing the sales of new energy vehicles.

Do subsidy increases promote or inhibit innovation? Evidence from Chinese enterprises listed on the SSE STAR Market

PurposeThis study aims to comprehensively investigate the relationship between government subsidies and innovation performance in Chinese enterprises listed on the SSE STAR Market.Design/methodology/approachAn unbalanced sample, covering 285 observations in 215 enterprises listed on the SSE STAR Market from 2019 to 2020, was used to explore the relationships between government subsidies, R&D investment, CEO shareholding and innovation performance. Counterfactual analysis is added for robustness testing.FindingsEmpirical evidence confirms that government subsidies have an inverted U-shaped relationship with R&D investment and innovation performance. Meanwhile, R&D investment is a mediating variable between government subsidies and innovation performance. Moreover, CEO shareholding plays a moderating role between government subsidies and R&D investment. The higher the CEO ownership, the steeper the inverted U-shaped relationship.Practical implicationsThe government should introduce a dynamic mechanism to reasonably control subsidy amounts and strengthen the supervision of subsidy use. Enterprise managers should be aware of how incentives affect the firm’s innovation and implement a coordinated development of government subsidy policies and internal enterprise governance.Originality/valueThis study adds new empirical evidence for the relationship between government subsidies and enterprise innovation performance. The risk incentive provided by stock options is an important micro mechanism to compensate for the lack of government subsidies. The study identifies ways to promote firm innovation based on the synergistic effect of internal and external mechanisms.

Sustainable Food Production from a Labor Supply Perspective: Policies and Implications

Sustainable food production is an important foundation for a country’s development. With the accelerated pace of China’s economic development, many farmers are relocating to cities. This change in farmers’ part-time employment may lead to a shortage of agricultural labor supply and can result in insufficient food production. Therefore, the government implemented grain subsidies to promote food production. This study investigates the impact of grain subsidies on the labor supply of farm households, using panel data from fixed observations in rural China. The results show that grain subsidies increase the agricultural labor time of incompletely divided part-time farmers, especially the time spent growing food. This increase is because the members of these households are more likely to be engaged in temporary-seasonal-nonfarm work, and they can switch between nonfarm and agricultural work more easily. Moreover, this study finds that as the total amount of subsidies received by farmers increases, the effect of per-unit subsidies becomes more pronounced. These findings may provide evidence of subsidy effects and present policy implications for ensuring adequate food supply and sustainable agricultural development in the future.

USING CLUSTER ANALYSIS TO ASSESS FINANCIAL STABILITY AS AN OBJECT OF MANAGERIAL IMPACT OF REGIONAL COMPETITIVE IMMUNITY

The relevance of considering and analyzing financial stability and competitive immunity at the meso-level in modern conditions is increasing due to changes in the state of both the economic and social spheres. It was found that the “competitive immunity of the territory” reflects a number of new characteristics of modern territorial-regional-interregional competition in the global economy, which distinguishes it from the concept of economic security both at the macro and meso levels. The paper considers the category of “competitive immunity of the region”, which implies the possibility of survival of the peripheral territories of the regions of Ukraine and maintaining their high level of competitiveness. In accordance with the accepted concept of competitive immunity, three problemarea blocks were identified: information-digital approach; information and digital technologies; cost and reputation management, which include objects of managerial influence necessary to evaluate the transition of competitive immunity to sustainable functioning. The main aspect in the study of the financial stability of the local regional budgets as an integral part of the competitive immunity of the region was the search for criteria and the development of a methodology for evaluating efficiency. The following performance indicators of local budgets were used: budget revenues; budget spending; intergovernmental transfers from the state budget; tax revenues; the amount of equalization subsidies; non-tax revenues; average population. An applied study of the methodology for assessing the financial sustainability of the budget as an object of managerial influence at the local level was carried out on the example of selected indicators of local budgets of all regions of Ukraine for 2018-2020. The calculation of the selected indicators was made on the basis of statistical data on the local budgets implementation, reports and decisions of regional councils on the regional budget. The distribution of the initial data set into clusters was analyzed with help of the Deductor business analytical platform, using the k-means clustering algorithm and Kohonen maps. Based on the results of the k-means algorithm, it was found that it is advisable to divide the sample for classifying regions into three groups. To compare and evaluate the effectiveness of the results obtained, as well as to supplement the analysis of the financial stability of the regions of Ukraine, Kohonen maps were used using the Deductor business analytical platform. It was revealed that both methods allow efficient clustering of data in a multidimensional space. The results of clustering obtained by different methods are consistent with each other and, when applied in a complex manner, make it possible to classify the elements of the sample with maximum likelihood and minimum error. The regions of Ukraine were grouped according to the financial stability of the local budget into three groups: regions with high financial stability, regions with medium financial stability and regions with low financial stability. The correct interpretation of the results obtained through a comprehensive analysis of financial stability in relation to the local budget using clustering or using neural networks allows not only to analyze the obtained values, but to compare them with the standard and conduct a comparative analysis relative to other regions, identify the influence of factors on the change in the integral indicator, give a predictive assessment for the future and justify the chosen strategy for strengthening competitive immunity for a particular region.

Mission of International Agribusiness Insurance: Modern Challenges and Opportunities for Ukraine

An urgent problem today is the reproduction of a sustainable ability to meet the demand for food products in different countries of the world. The solution to this global problem lies in the search for optimal financial and economic tools for timely counteraction to agricultural risks. Many years of international experience prove that such a tool is insurance. The purpose of the study is to conceptualise the mission of international agribusiness insurance, specify modern challenges, and identify opportunities for Ukraine. The methodology of this study was based on the use of various methods, in particular: abstract and logical, epistemological, comparative, structural and functional, modelling, formalisation, induction and deduction, regression and system analysis. The uniqueness of insurance lies in its ability to accumulate the necessary financial resources and distribute them to the needs of compensation for losses in the case of insurance events distributed in space and time. Consequently, the conducted research is aimed at substantiating the mission of international agribusiness insurance, identifying current challenges and existing opportunities in Ukraine. The main advantages and disadvantages of various models of interaction of stakeholders in the international agricultural insurance market are established. The paper highlights the world experience in positioning classic and index insurance products on the market. It was found out that the current level of agribusiness insurance in Ukraine does not correspond to its potential opportunities. Based on the parameters of the constructed regression model, it is established that the basis for further expansion of insurance coverage of agricultural risks is an increase in the number of concluded and renegotiated agricultural insurance contracts, an increase in the liability limit (insurance amounts) of companies, ensuring actuarial balance, and an increase in the amount of state subsidies. The practical implementation of these measures should be considered in the context of food security at the regional, national, and global levels

Incentivizing environmental investments: The contest-based subsidy allocation mechanism

Governments often provide subsidies to incentivize investments that are considered important for the society. The question is how to distribute those subsidies in the most efficient way. This paper proposes two novel contest-based subsidy mechanisms and evaluates their effectiveness in terms of firms’ environmental investments, profits, consumer and producer surplus, environmental damage and social welfare. In the product green features (PGF) subsidy mechanism firms compete in terms of investment in product green features in order to obtain the highest amount of subsidy. In the CO2 abatement (ABA) subsidy mechanism firms compete in terms of investment in CO2 abatement in order to obtain the highest amount of subsidy. Among other results, we found that the PGF subsidy mechanism is more effective to promote investments in product green features and to increase consumer surplus. However, the ABA subsidy mechanism is found to be more effective in industries or technologies in which the level of emissions is relatively low. However, such environmental policies may lead to inflation, and may not always improve social welfare. This paper opens new avenues of research and thinking in terms of environmental subsidies and policy.

Stability and Stabilization of Nash Equilibrium for Uncertain Noncooperative Dynamical Systems With Zero-Sum Tax/Subsidy Approach.

A zero-sum tax/subsidy approach for stabilizing unstable Nash equilibria in pseudo-gradient-based noncooperative dynamical systems is proposed without the information of agents' personal sensitivity parameters. Specifically, we first present several sufficient conditions for guaranteeing stability of an unstable Nash equilibrium in the face of uncertainty. Furthermore, we develop a framework where a system manager constructs a zero-sum tax/subsidy incentive structure by collecting taxes from some agents and giving the same amount of subsidy in total to other agents so that the agents' payoff structure is properly modified. Finally, we present several numerical examples to illustrate the utility of the zero-sum tax/subsidy approach.

External cost analysis of nuclear fuel cycle comparing direct disposal and pyroprocessing in Korea

This study presented the external cost estimation results for direct disposal and the pyro-SFR nuclear fuel cycle. Economic evaluations of the nuclear fuel cycle thus far have focused on internal costs, using electricity generation costs. However, after the Fukushima nuclear power plants accident in Japan, public interest in nuclear safety has increased. Therefore, the importance of external costs such as the accident response cost has been highlighted. Environmental groups argue that external social costs should be internalized in nuclear electricity generation costs. Therefore, estimating external costs for the nuclear fuel cycle, which is highly likely to be adopted in the future, is necessary. External costs are social costs and mainly consist of accident response costs, energy supply security costs, and public acceptance costs. In particular, in order to estimate the public acceptance costs in this study, the desired amount of subsidy provided by the government was determined using the survey results of local residents of nuclear power plants and nuclear experts. In the end, electricity generation unit costs including external cost were estimated to be 0.0474 GBP/kWh and 0.0514 GBP/kWh for direct disposal and the pyro-SFR nuclear fuel cycle, respectively. Therefore, in terms of economics, direct disposal would be advantageous over the pyro-SFR nuclear fuel cycle.

The effects of policy subsidy on the investment decisions of carbon capture and storage—A real‐options approach

AbstractCarbon capture and storage (CCS) plays an important role in promoting developing countries to reduce carbon emission and meet the requirement for carbon reduction under carbon neutral and carbon peak targets. To evaluate the incentive effect of subsidization mechanisms on CCS investment, the paper incorporates two incentives into the model, considers the effects of the carbon trading price, electricity price, and other uncertain factors on the investment behaviors for CCS projects under uncertainty and explores incentive intensity of two policies on investment based on the real option method. The results show that even in the case of full operating cost subsidies and double electricity price subsidies, the power plant still delays CCS investment due to the imperfection of carbon market. The most appropriate policies for supporting immediate investment in CCS project are identified in the paper by considering the critical carbon price and electricity price in different scenarios. Additionally, the findings show that it is more efficient for the electricity price subsidy than cost subsidy with same subsidy proportion under single policy condition, while the minimum subsidy amount required to invest immediately is 32.86 million CNY in the combination of the two policies. This provides environmental policymakers with valuable insights on promoting CCS deployment under the context of carbon reduction. © 2022 Society of Chemical Industry and John Wiley & Sons, Ltd.

Reducing energy poverty in deprived regions or supporting new developments in metropolitan suburbs? Regional differences in the use of subsidies for home energy efficiency renovations

This paper contributes to existing research on home energy efficiency renovations by analysing the extent to which regional differences in the distribution of subsidies for renovations are related to geographical and socioeconomic factors, by analysing statistical data for districts in the Czech Republic. The novelty of this study lies in the fact that it maps and analyses not only regional differences in the rate of drawing subsidies and its determinants, but also differences in the way these subsidies are used (whether for reducing the energy intensity of existing houses by insulation, implementing renewable energy technologies or building new houses with low energy intensity). The analysis revealed significant correlations between the amount of subsidies drawn in districts per capita and variables which indicate territorial stability and social capital. There are significant differences in the rate of drawing subsidies between specific regions that are considered as economically deprived and where people are at higher risk of energy poverty. While border regions in the east of the country show an above-average use of funds for insulation of existing houses, in the largest cities and their suburban areas people are more likely to use subsidies for construction of new houses. The results indicate that subsides should be redistributed and targeted more effectively in respect to the declared objectives of the program.

Cost-sharing contract design between manufacturer and dealership considering the customer low-carbon preferences

Manufacturers and dealerships usually have a long-term cooperation in selling low-carbon products produced by signing a contract without considering the dynamic changes in consumer’s low-carbon preferences. Consumers’ low-carbon awareness and the low-carbon reputation of those low-carbon products occasionally alternate affected by the market circumstances, which will influence the selling of low-carbon products. This paper focuses on the contract design between a manufacturer and a dealership using Stackelberg differential game models to formulate the long-term contract between a manufacturer and a dealership. To promote the low-carbon reputation of low-carbon products, two cost-sharing contracts, including a one-way cost-sharing contract (OWC) and a two-way cost-sharing contract (TWC), are proposed. The manufacturer in the OWC contract provides a certain amount of subsidies to incentivize the dealership. The manufacturer and the dealership share costs in the TWC contract. Besides, dual-channel models are also analyzed as an extension of the proposed model. Several findings were obtained by solving and analyzing the proposed game models. The manufacturer’s emission reduction efforts and the dealership’s low-carbon promotion efforts are influenced by dealership’s cost coefficient related to the promotion of low-carbon product, low carbon reputation sensitivity coefficient of consumers, influence coefficient of manufacturer’s emission reduction efforts on low-carbon reputation and etc. The proposed cost-sharing contracts improve the manufacturer and the dealership’s efforts by changing the factors. The OWC contract can achieve Pareto improvement, and the TWC contract can realize the coordination between the manufacturer and the dealership. The optimal conditions for its contract choice are also proposed from the manufacturer’s point of view. This paper also provides valuable insights for companies in the supply chain to design suitable contracts to coordinate the supply chain stakeholders’ activities, especially in promoting low-carbon efforts in a long-term cooperation.

Evaluation and suggestion on the subsidy policies for rural clean heating in winter in the Beijing-Tianjin-Hebei region

The central and local policies have played an important role in the implementation of rural clean heating, and have also accelerated the improvement of air quality in Northern China. Among these policies, the subsidy policies have the most significant impact on rural clean heating. However, due to some inappropriate subsidy policies, they have also caused many problems, such as the reburning of scattered coal. To effectively solve the current problems and further optimize the subsidy policies, the Beijing-Tianjin-Hebei region is selected as the research object in the present paper to evaluate the subsidy policies of rural clean heating, and analyze the insufficiency of central policies as well as the burden of subsidy on local finance. The results show that there is an issue of inequality on the central subsidy policies of rural clean heating, and a huge difference in the central government's subsidy amount per household more than 8 times between different cities. In terms of the local subsidy policies, the ratio of clean heating subsidy to local fiscal expenditure fluctuate more and more from the province, city to county level, and some counties have been at a high fiscal pressure level. Based on the current situation of rural clean heating in the Beijing-Tianjin-Hebei region, it is suggested to optimize the subsidy policies systematically from the optimization of work goals, the adjustment of central policies, the improvement of local policies and the enhancement of policy assessment. This study is aimed to provide references for the policy optimization of rural clean heating in Northern China.

Sponsored data: A game-theoretic model with consumer multihoming behaviour

Problem definitionConsumer multihoming behaviour challenges the sponsored data business model initiated by internet service providers (ISPs) associated with content providers (CPs). Academic/practical relevanceDifferent from data subsidization research which focuses on the CPs having no exclusive content and consumer exhibiting only single-homing behaviour, we explore the interplay between a monopolistic ISP and two competing CPs in the presence of consumer multihoming behaviour. We capture the effect of CPs’ differences in operational characteristics (e.g., exclusive content and revenue rate) on the ISP's data plan, CPs’ subsidy regime, and consumer multihoming behaviour. MethodologyWe develop a game-theoretical model with an ISP and two competing content providers (CPs) offering overlapping (i.e., non-exclusive) content and exclusive content to consumers who may have multihoming behaviour. The monopolist ISP designs its data plans by providing the subsidy options for neither, one, or both CPs (represented as strategies N, O, and B), and it announces a usage-based per-packet price. In response, the involved CPs decide the subsidy regime, based on which consumers choose between single-homing and multihoming. ResultsWe find that the CPs’ exclusive content popularity and revenue rate are critical considerations for the ISP in designing the data plans. Only when the revenue rate is high will the ISP allow both CPs to subsidize data; otherwise, it prefers strategy N for high exclusive content (i.e., when a large amount of exclusive content) but strategy O for low exclusive content. For CPs, strategy O induces consumers to choose multihoming when the exclusive content is high, and strategy B further stimulates some consumers to switch from single-homing to multihoming for a high revenue rate. Interestingly, the subsidy amount is not affected by the revenue rate in strategy O after the revenue rate exceeds a threshold. Moreover, we identify conditions under which the ISP's data plan promotes the consumer surplus and social welfare. Managerial implicationsOur study sheds light on the influence of consumer multihoming behaviour on the co-opetition in the streaming industry. It provides insights for ISPs and CPs in the recent debate on the effect of sponsored data on consumer surplus and social welfare.

Direct payments and on-farm employment: Evidence from a spatial regression discontinuity design

Abstract Direct payments are regarded as a suitable instrument to safeguard jobs in the agricultural sector. However, empirical findings to date do not unambiguously support this expectation. We further empirically investigate this research question on dairy farms with a focus on family work. Using a spatial regression discontinuity design, we rely upon selection on unobservables assumptions. The Swiss direct payments system creates a discontinuous jump near the border of agricultural production zones for the amount of public subsidies a farm receives. Using two-stage least squares (TSLS) to estimate the policy-relevant effect, we find that an additional CHF 50,000 can generate a job for a female family worker in the dairy sector. Male employment is not affected. These results show that direct payments can safeguard traditional family farming.

The Grassland Ecological Compensation Policy Drives the Differentiation of Herders’ Livelihoods in Inner Mongolian Desert Grassland

Herders’ livelihood strategies are functions of the capitals at their disposal. Although this thesis has been proved, it has not been applied to livelihood research in the context of conservation initiatives. The Chinese government implemented the Grassland Ecological Compensation Policy (GECP) in 2011. However, the impact of the policy on herders’ livelihoods is still unclear. This study measured the variation in herders’ livelihood strategies in the desert grassland of Inner Mongolia, China, after the implementation of the GECP. This study also analyzed the impacts of livelihood capitals on the livelihood strategies, revealing the shortages of different livelihood strategies. The results showed the following: After the GECP, (1) herders’ livelihood strategies could be grouped into five types based on livelihood capitals. The livelihood capitals of herders varied greatly, resulting in large economical gaps among households with different livelihood strategies. (2) The herders’ livelihood strategies were affected by factors including the education, age, social communication, amount of livestock, income, and subsidy of the herders. (3) The main income sources of different livelihood strategies were both subsidy and livestock husbandry. In general, the GECP drives the differentiation of herders’ livelihoods remarkably. Future conservation initiatives should take the shortages of different livelihood strategies into account.

Incorporating ride-sourcing services into paratransit for people with disabilities: Opportunities and barriers

The Americans with Disabilities Act (ADA) requires public transit agencies to provide an equivalent transportation service for people with disabilities, known as ADA paratransit service. As the U.S. population continues to grow and age, the demand for paratransit service keeps rising, posing many challenges for transit agencies due to its high operational cost. In response, a growing number of transit agencies are looking to incorporate alternative paratransit services by forming partnerships with transportation network companies (TNCs) to provide what is known as same-day service (SDS). However, most of these partnerships are still in the pilot phase, and scant research investigates the opportunities and barriers of SDS or provides guidelines and measures for transit agencies interested in such partnerships. Considering both the characteristics of paratransit trips and riders and the operational norms of TNCs, this paper explores different conditions under which SDS trips are most appropriate and estimates potential trip diversion from conventional paratransit to SDS operated by TNCs. Trip diversion conditions include (1) trip length, which is impacted by the subsidy amount for SDS and the dynamic pricing of TNC trips, (2) level of service, which depends on the level of mobility assistance required by paratransit riders, and (3) the operational efficiency of conventional paratransit. Different settings and combinations of these conditions help transit agencies explore the potential trip diversion of SDS while considering significant barriers to the service. Using 2019 ridership data of Access paratransit, the ADA paratransit services in the Seattle region, this research finds that without an excessive subsidy amount, transit agencies can divert up to 18% of paratransit trips to SDS. This percentage can drop to as low as 11% of paratransit trips if transit agencies further limit the SDS service area to ensure the efficiency of conventional ADA paratransit. This paper concludes that although SDS provides many benefits, significant barriers inherent to TNC business models and paratransit users should be carefully examined when pursuing ADA paratransit-TNC partnerships.

Simulation study on optimization of system dynamics financing for Chinese small and medium-sized enterprises: A dual-cycle perspective

Small and medium-sized enterprises (SMEs) have been suffering from the problem of “difficult and expensive financing.” The few loans available are allocated unevenly to SMEs, resulting in a financing mismatch. To address this problem, this paper constructs a system dynamics model to simulate and calculate the theoretical loan amounts of SMEs. Compares the values between the theoretical and actual loan amount to find out the enterprises with extreme values of the difference. Then, it analyzes the characteristics of the index data of these enterprises to explore feasible solutions to solve the financing mismatch problem. The CRITIC and AHP weight determination methods will be used to calculate weights and screen indicators. The data will be quantified and calculated according to the standardized scoring table of enterprise borrowing factor indicators. The results show that enterprises with actual borrowing amounts higher than the theoretical borrowing amount perform better than other sample enterprises in three indicators: growth rate of primary business income, the upper limit of the loan amount, and subsidy amount. The actual loan amount can be increased by improving these indicators. This research can help solve the problem of financing mismatch to realize effective resource allocation and provide significant guidance for the research on enterprises to obtain more loans.

Development of electrolysis technologies for hydrogen production: A case study of green steel manufacturing in the Russian Federation

The article reviews a list of solutions to reduce the carbon intensity of the Russian fuel and energy complex. The technological scheme of green hydrogen production that is the most optimal for the Russian Federation has been determined. It is shown that by 2040, the net present value of hydrogen production units by the alkaline electrolysis method will amount to US $ 35 thousand/ kW while the cost of plants with a solid polymer or a solid-oxide electrolyzer will be at US$30 thousand/ kW and US $ 26 thousand/ kW accordingly. This paper presents a feasibility study of green hydrogen production from wind-powered electrolysis with further direct reduction of iron ore for green steel manufacturing. According to the analysis, the difference in cash flows between standard steelmaking technology and direct reduction of iron ore with hydrogen is 20% which in the long term could be reduced to 5%. Compared to the European Carbon Border Adjustment Mechanism, companies will be able to save about 3% of the present value. To achieve the commercial attractiveness of hydrogen production by electrolysis, the minimum amount of government subsidies should be at least 10% of capital expenditures from 2021 with a gradual increase to 20% by 2040 to support the emerging market.