(A) study on the policy to promote the investment in the clean energy technology

Abstract

This paper examines the effects of public policies to promote the clean energy technology investment. Governments have provided the industry with various financial incentives through the policies. They have two forms

the incentives on either the project's revenue or the investment costs. Due to the highly risky characteristics and the assessment that the industry is at the early stage, many experts argue that venture capitalists are very important in the innovation. That is because VCs own the high-risk investment portfolios and provide the management supports service for the entrepreneur. Especially, the effort costs from the service are distinct features in the clean energy industry, so that we need to reflect them in our theoretical model. Therefore, the theoretical model in this study includes the two financial incentives explicitly while considering the investor's effort costs. In conclusion, the policy of financial incentives on the project's revenue is more effective to facilitate the clean energy investment.