Empirical study on Japan´s fiscal policy to promote the development of emerging industries: Take new energy vehicles as example

Fiscal policy is the main policy tool to promote the development of strategic emerging industries. Among the world´s major developed countries, Japan is one of the most frequent countries in using fiscal policy. In this paper, we analyze the Japan´s fiscal policy to promote the development of new energy vehicles industry and other strategic emerging industries, and appraise the effect of fiscal policy using Hotelling spatial competition model. The result show that Japan´s tax cuts, R&D subsidies, infrastructure construction investment have played an important role in promoting the development of new energy vehicles industry and other strategic emerging industries. At last, this paper puts forward policy recommendations to promote the development of Chinese strategic emerging industries. Such as the government should cut consumption tax, increase R&D subsidies, and strengthen the industrial infrastructure construction.