Effects Of Subsidy Policies Research Articles

Improving the Innovative Performance of Renewable Energy Enterprises in China: Effects of Subsidy Policy and Intellectual Property Legislation

Energy efficiency and emissions reductions are effective initiatives to address climate change and energy security. China has increased government subsidies and intellectual property protection (IPP) intensity to promote technological innovation in the renewable energy sector. This paper selects samples of geothermal, wind, and solar energy companies and examines whether the two initiatives mentioned above can improve company innovation, and assesses their action pathways. The results reveal that: (i) government subsidies can directly facilitate renewable energy enterprises’ innovative performance, and research and development (R&D) input served as a medium; and (ii) the intensity of IPP moderation needed for geothermal and solar enterprises to utilize the government subsidy to enhance innovation. The government should consider the differences of different sub-sectors of renewable energy when increasing subsidies. Better laws and policies are needed to strengthen the protection of intellectual property rights and stimulate innovation in renewable energy enterprises.

The Effects of Subsidy Policy on Electric Vehicles and the Supporting Regulatory Policies: Evidence From Micro Data of Chinese Mobile Manufacturers

Subsidy policy to electric vehicles in China was initially launched in 2001. This study uses the perspective of the characteristics of subsidy policy and applies generalized propensity score matching (GPS) to estimate the impact of different subsidy policy intensities on the change in consumer demand for EVs and find the interval to optimize. The study shows that the optimization interval of the policy is in the 40%–70% treatment level, which maximizes the effect of the subsidy on China’s EVs. For a treatment effect lower than 40%, it is difficult to effectively create an incentive to enter the EVs market in China because consumers think that the product is difficult to satisfy the demand of too low technology; by contrast, for the treatment level higher than 70%, the cost of the high endurance mileage power battery increases exponentially, and the complementary effect of subsidies is insufficient. Consequently, we propose three suggestions: The government should 1) use big data technology to supervise subsidies and design a real-time reporting mechanism and punishment mechanism for subsidy-misuse; 2) adopt the incentive regulation to promote the battery range of new energy vehicles (e.g., optimizing the subsidy ladder, innovating the form of subsidies) and gradually eliminate low-technology product; and 3) reasonably design a targeted regulatory mechanism that increases the cost of fraud and breach of contract to encourage firms to truthfully report technical indicators.

Rethinking international subsidy rules

AbstractGeo‐economic tensions, notably associated with the rise of China, and global collective action problems—climate change and the COVID‐19pandemic—call for international cooperation to revise and develop rules to guide both the use of domestic subsidies and responses by governments to cross‐border competition spillover effects. Current WTO rules dividing all subsidies into prohibited or actionable categories are no longer fit for purpose. Piecemeal efforts in preferential trade agreements and bi‐ or trilateral configurations offer a basis on which to build but are too narrow in scope. Addressing spillover effects of subsidies could start with G20 countries launching a work programme to mobilise an epistemic community concerned with subsidy policies, tasked with building a more solid evidence base on the magnitude, purpose and effects of subsidy policies. The need for such cooperation has become even more pressing by the COVID‐19 pandemic and associated increase in the use of subsidy programmes in major economies.

Investigating the effect of government subsidies on end-of-life vehicle recycling.

To have a deeper understanding of the Chinese market reaction for different subsidy policies made by the government, we establish a game model of the competition between legal recyclers and illegal recyclers with government involved. Further, we consider the quality differentiation of end-of-life vehicles in every player's decision-making. With a numerical simulation, the researchers validated this study. Based on the results of this research, we found that compared with the strategy of subsidizing the legal recyclers, subsidizing the end-of-life vehicle owners is more effective, and the legal recyclers would get more business from end-of-life vehicle owners. The quality of end-of-life vehicles plays a vital role when the recyclers make decisions on their recycling behaviour. Moreover, the differential subsidy policy will probably be useless if most of the end-of-life vehicles in the market are in poor quality. So, the Chinese government should adjust its policies on end-of-life vehicle market development based on the quality distribution of end-of-life vehicles, and the quality management should be implemented in the end-of-life vehicle supply chain for the efficiency and effectiveness of subsidy policies.

Rethinking International Subsidy Rules

Geo-economic tensions, notably associated with the rise of China, and global collective action problems – climate change; the COVID-19 pandemic – call for international cooperation to revise and develop rules to guide both the use of domestic subsidies and responses by governments to cross-border competition spillover effects. Current WTO rules dividing all subsidies into prohibited or actionable categories are no longer fit for purpose. Piecemeal efforts in preferential trade agreements and bi- or trilateral configurations offer a basis on which to build but are too narrow in scope. Addressing spillover effects of subsidies could start with G20 countries launching a work program to mobilize an epistemic community concerned with subsidy policies, tasked with building a more solid evidence base on the magnitude, purpose and effects of subsidy policies. The need for such cooperation has become even more pressing by the COVID-19 pandemic and the associated increase in the use of subsidy programs in major economies.

"산업 균형 모형을 이용한 제조업 지원 정책의 효과 분석"

"산업 균형 모형을 이용한 제조업 지원 정책의 효과 분석"

Recycling policy and statistical model of end-of-life vehicles in China.

In China, the number of end-of-life vehicles (ELVs) has reached an era of exponential growth because of continuous vehicle sales. The Chinese government has guided trends in the ELV recycling industry by implementing various recycling policies and expects most ELVs to be legally treated by licensed companies. The effects of subsidy policies are remarkable, and it was found that the effective adjustment of the subsidy is beneficial in increasing the recovery rate of ELVs without additional financial burden. Just as objects have their own end-of-life laws, different vehicle types have different life distribution curves and they are slightly influenced by government policies, especially subsidy policies. The aim of the study is to establish the logistics distribution functions for the passenger vehicles and commercial vehicles on the basis of the service years of 220,000 ELVs from 2012 to 2016 in Shanghai, and use a statistical model to predict and analyze the future trend of the number of the ELVs in China. Forecasts show that the number of ELVs in China will surpass 10 million in 2023.

IMPACT OF SUBSIDY ON LOW-RENT HOUSING LESSEES' WELFARE IN CHINA

Chinese Low-rent housing subsidy has been increasing year by year. However, it will be a very one-sided view if we only take the increasing number of subsidy into consideration when evaluating the effects of subsidy policy on low-rent housing lessees. Thus we studied on the impact of subsidy increase on low-rent housing lessees' welfare in China, and explored a valid way to evaluate the utility of the subsidy policy. At first, basing on the theory of welfare, we analyze the indifference curve model within consumption budget condition. After that, we applied the Cobb–Douglas utility function to establish a low-rent housing lessees' welfare model. Finally, some suggestions, especially in regard to the use of Information Technology to support subsidy making and protect low-rent housing lessees' welfare, are given to the Ministry of Housing and Urban–Rural Development of the People's Republic of China (MOHURD) and local Municipal Commissions of Housing and Urban–Rural Development (MCOHURD).

The effect of subsidy policies on the product quality improvement

This paper analyzes the effect of government subsidy policies on creating an incentive for domestic firms to improve their product quality before exporting to an outside market. The goal of the government is to minimize the time it takes to reach the appropriate product quality level at low costs. We simulate a dynamic profit maximization problem of the firm and derive the optimal path of the product quality development, then test the efficiency of the three types of subsidy methods: Constant Subsidy, Quality Matching Subsidy and Time-limited Subsidy methods. Our model yields a number of intriguing results: (i) not every subsidy methods guarantee product quality development, although the same amount is subsidized. (ii) the matching fund style subsidy is more efficient than providing constant amount of subsidy. (iii) Time-limited Subsidy improves product quality faster than the unlimited subsidy method. (iv) Time-limited Subsidy improves quality much faster than other methods with less subsidy cost. (v) there is an optimal combination between the subsidy and the time limits.

The effect of a subsidy policy on the utilization of community care services under a public long-term care insurance program in rural Japan

This cross-sectional study investigated the effect of an interim subsidy policy for low-income beneficiaries to buy home help services under Japanese long-term care insurance (LTCI) for the service utilization of home help and other community care services. Claims records during the period from October to December 2001 were reviewed to compare the monthly amounts for each service and out-of-pocket copayment for subsidized ( n = 137) and non-subsidized ( n = 124) beneficiaries. A multivariable linear regression analysis was conducted to control for age, gender, household size, length of care, and care eligibility level. Compared with the non-subsidized beneficiaries, the subsidized beneficiaries used 1.53 times as much home help service ( p < 0.001), and spent 0.70 times as much on out-of-pocket copayments ( p < 0.001), while they used fewer adult daycare services (0.71 times as much as the non-subsidized did, p = 0.063). The results strongly indicated that the interim subsidy for low-income beneficiaries alleviated the economic burden, but also resulted in service overuse and the substitution of home help services for other community care services. The policy implications of these findings were discussed.