Analysis of the Power of Subsidy Policy, which is used in Biomass Power Generation Industry - Take Straw Direct Combustion Power Plant for Example

摘要

Nowadays, Biomass power generation as a environmental friendly way to generate energy has become more and more popular around the world, especially in developed countries. Chinese government also encourages the usage of biomass in power generation, and they give many preferential policies to support this industry's development such as subsidy policy. But the effect is not obvious. As we all know, there is a economic phenomenon named tax shifting in the subsidy process which can reduce the effect of subsidy policy. This paper takes power plants which use straw as raw material for example, and uses the macroeconomics model of tax income and the theory of demand and supply as bases to find whether there is also a tax shifting in biomass power generation industry especially in power generation market, raw material market and analyze the effect of subsidy policy used in it.