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Subsidy Policy is a Low-efficiency Economic Means to Promote New Technology

Date: Aug 10, 2010      Source: IEEPA      

If the government viewed subsidy policy as a leading measure to promote new technology, it would be an low-efficiency economic means, said Ms Ozdemir Oulu, a British Economic Consultant, as a matter of fact, each country had no adequate money to subsidize new technology, the key point was to determine whether the new technology was aimed at social benefit or economic benefit. If the new technology had enormous social benefit, the government shall adopt administrative intervention and play a leading role in the regard. For example, before the enterprises entered the new technology field, the government shall make a budget and offer fundamental investment. Aside from that, the government shall establish permanent carbon trading market as well as similar market in each field such as ecology-friendly fishery market, fresh water market, which are aimed at encouraging people to save resource by way of market means. At the same time, multi-level taxation system also played a positive role in pushing out new products, and shall be executed from the source, she added.

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