China takes lead of the world in direct use of geothermal heat. Its growing speed is still far behind that of solar and wind power. It is neccessary to deploy more effective policies for geothermal energy development in China, as well other countries interested in renewables.
In my country, we have so called feed-in-tariffs for electricity and heat from RES - it is quaranted price per MWh for producers of electricity and heat - some kind of grant. It is good instrument for supporting RES. You can set higher feed-in-tariff for electricity and heat from geothermal energy.
I agree, that reduced taxtation and increased investment are possible solutions. In addition, each state should encourage the use of renewable energy.
Hello Jamila, Thanks for your answer! This policy has been implemented by the Beijing Minicipal Government in China and it has been very effective as well. It seems that more regions should follow this good example.
By creating, for exemple, tax benefits in indivudual income taxes and in corporate taxes for the producers of such energy.
By creating, for instance, tax benefits in the taxation of real estate in the case of environmentally sustainable buildings.
Some of such benefits exist in the Portuguese case.
China does not have a tax expenditure budget; it almost did - a Deputy Minister pushed hard for it last decade but moved on before he could see it implemented. In jurisdictions that have tax expenditure budgets, tax concessions (lower rates), etc. are treated as the equivalent of direct expenditures handed out through the tax system. Experience has shown that almost without fail they are less efficient than other direct expenditures or subsidies and that these are less effective than using regulation so the market can deliver the desired energy policy more efficiently. Using tax concessions costs tax revenue that could be used for desirable social and economic programs and inevitably gives rise to recharacterization schemes, etc. devised by tax advisors to exploit the tax concession. It's hard to imagine why you'd want to hand over cash, directly or via tax expenditures when you can achieve a better result at lower cost through direct regulation. Unless, of course, the goal is to enrich tax advisors.
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