Business Perspectives to Financial Subsidies for Industrial Energy Saving: A Survey Study in China and Korea

Event: Annual Conference of Japan Society of Environmental Economics and Policy Studies (JSEEPS)
Conference Paper

This paper presents a survey study to companies in China and Korea for understanding their opinions to financial subsidy policies for industrial energy saving. The survey in China was conducted during August 2012 to January 2013 and 201 respondents were confirmed to be valid. The survey to Korean companies was carried out during December 2012 to January 2013 and 150 samples were collected. The result indicates that Chinese companies commonly recognize the needs to financially support all the pre-listed fields. They agree that the limited public resources shall be used for the early stage of technology process, e.g., research, development and demonstration of energy saving technologies. In contrast, the surveyed Korean companies gave low to moderate priorities to the pre-listed fields for receiving financial incentives. Large gap was confirmed between the subsidies expected by surveyed companies and the actual level in both countries. The problems for the subsidy policy implementation were identified. The policy weakness in China include the limited coverage, small subsidy amount and the lack of transparency in implementation. Whereas, policy coverage and transparency are not recognized as problems in Korea. Korean companies favor the stable and long-term economic incentives, i.e., lower electricity price, rather than the one-time financial subsidies.