Analysis of the Expansion of Energy Saving Subsidy in China in 2012

Since 2009, China has launched the "Energy-saving Products Benefiting the People's Project". Initial promotion includes energy-saving lamps, energy-efficient air-conditioning, high-efficiency motors, and energy-saving vehicles.

From June 1st, 2012, the State Council has included five categories of high-efficiency energy-saving flat-panel televisions, air conditioners, washing machines, refrigerators, and water heaters. Among them, electric water heaters consume a lot of power. In this subsidy, they are “out”, and gas water heaters have become the highest energy efficiency threshold in subsidies.

Recently, with the approval of the State Council, the Ministry of Finance, the National Development and Reform Commission, and the Ministry of Industry and Information Technology have decided to add energy-efficient desktop computers and energy-efficient unit air conditioners to the consumer products sector, and four new types of energy-saving products for fans, pumps, compressors, and transformers in the industrial products sector. Six types of energy-saving products have been included in the scope of promotion. The implementation period of the promotion policy is tentatively scheduled to be one year.

Guide corporate green production

It is not necessary to add energy-saving subsidies to these six types of products. Some data can be used to explain. It is understood that at present, China's desktop computer has 130 million units, which consumes 31.2 billion kWh of electricity; China's unit air conditioners consume 350 billion kWh of electricity each year. In addition, in 2011, the power consumption of the four types of products for fans, pumps, compressors, and transformers in the industrial sector accounted for more than 40% of the total electricity consumption in the society, but the system operating efficiency was 20% lower than the average level in the developed countries.

Relevant sources disclosed that for this expansion, the country has started brewing in the first half of this year, mainly considering that energy-saving work needs to be excavated most of the time. Therefore, this adjustment will include several types of products into the scope of energy subsidies, and encourage companies such as wind turbines, pumps, and transformers to produce relevant energy-saving products.

According to Zhao Ping, deputy director of the Consumer Economics Research Department of the Ministry of Commerce, most of the products newly included in the subsidy range are not end consumer goods, but are part of the company’s procurement of production materials. This also shows that the subsidy policy is more about trying to guide companies to green production, reduce pollutant emissions, and promote economic restructuring as a whole.

A good time to seize the adjustment

There are no detailed rules on how to promote new products. However, the relevant person in charge of the Ministry of Finance recently stated that the new desktop computer and unit air conditioner promotion will continue to adopt the promotion mode of energy-saving appliances. The promotion of industrial products such as wind turbines and water pumps will make full use of the slowdown in economic growth and the timing of under-employment of enterprises, and vigorously promote the replacement and use of energy-efficient products. This includes the combination of inventory adjustment and incremental increase, the combination of administrative constraints and policy incentives, limited-time subsidies and long-term effective mechanisms, through the opportunity to improve industry energy efficiency standards, and promote product upgrading, in a wider range, more Wide areas to achieve energy saving and investment promotion.

“This expansion will be of great benefit to companies that produce these six types of products. Competent companies will also use this opportunity to actively seek state subsidies for industrial upgrading.” Zhou Hongchun, researcher of the Social Development Research Department of the Development Research Center of the State Council, told this newspaper The reporter stated that energy saving and emission reduction has now become a hard task for some companies and has become a hard indicator for assessing all levels of cadres.

Some local business leaders contacted by the China Economic Times reporter paid great attention to the work of energy saving and emission reduction. The energy product subsidies were extended to unitary air conditioners, transformers, and other products. It is also attractive for some large industrial enterprises because Replacing energy-saving products not only saves electricity and reduces energy consumption, but also helps companies complete the tasks of energy saving and emission reduction and better fulfill their social responsibilities.

Tax reduction for development

Regarding whether the implementation of the promotion policy should be continued one year later, Zhou Hongchun believes that at the beginning when everyone was reluctant to carry out product upgrades, the government will have a certain role in promoting the guidance, but in the long term this will disrupt the openness, fairness, and fairness of the market. The order of operation. He suggested that after proper guidance and cultivation, the state will reduce administrative intervention and adjust itself by the market.

Some people think that government planning should focus on tax cuts rather than industrial policy subsidies. In response, Zhou Hongchun agrees. He believes that although industry subsidies have guided the development of the industry, the downside is that it cannot guarantee total fairness. "So, the best way is to cut taxes, which will be more conducive to the development of the industry."