Mechanism of Fiscal and Taxation Policies in the Geothermal Industry in China

Yong Jiang, Yalin Lei, Li Li and Jianping Ge
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Yong Jiang: School of Humanities and Economic Management, China University of Geosciences, Beijing 10083, China
Yalin Lei: School of Humanities and Economic Management, China University of Geosciences, Beijing 10083, China
Li Li: School of Humanities and Economic Management, China University of Geosciences, Beijing 10083, China
Jianping Ge: School of Humanities and Economic Management, China University of Geosciences, Beijing 10083, China

Energies, 2016, vol. 9, issue 9, 1-20

Abstract: Geothermal energy is one of the cleanest sources of energy which is gaining importance as an alternative to hydrocarbons. Geothermal energy reserves in China are enormous and it has a huge potential for exploitation and utilization. However, the development of the geothermal industry in China lags far behind other renewable energy sources because of the lack of fiscal and taxation policy support. In this paper, we adopt the system dynamics method and use the causal loop diagram to explore the development mechanism of fiscal and taxation policies in the geothermal industry. The effect of the fiscal and taxation policy on the development of the geothermal industry is analyzed. In order to promote sustainable development of the geothermal industry in China, the government should pay more attention to subsidies for the geothermal industry in the life-cycle stage of the geothermal industry. Furthermore, a plan is necessary to provide a reasonable system of fiscal and taxation policies.

Keywords: geothermal industry; fiscal and taxation policies; system dynamics; China (search for similar items in EconPapers)
JEL-codes: Q Q0 Q4 Q40 Q41 Q42 Q43 Q47 Q48 Q49 (search for similar items in EconPapers)
Date: 2016
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (4)

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