Analysis and suggestions on subsidy mode for shale gas development in China

China is rich in shale gas resources, and large-scale exploitation has been realized with the improvement of technical level. Therefore, it should make full use of the subsidy policy while speeding up the development of shale gas resources in China, so as to achieve sustainable development while stimulating shale gas resources. This paper analyzes the status quo of shale gas development subsidies at home and abroad, and makes a systematic analysis of various kinds of shale gas development subsidies, and gives the advantages and disadvantages of various kinds of subsidies. Various shale gas development subsidy policies can be divided into three types: subsidy link, subsidy form and subsidy direction. From the aspect of subsidy link, they can be pre-subsidy and post-subsidy respectively, from the aspect of subsidy form, they can be price subsidy and rate subsidy respectively, and from the aspect of subsidy direction, they can be divided into technology investment subsidy and scale investment subsidy. In terms of policy suggestions, the government can mainly adopt the way of post-subsidy when formulating subsidy policies, so that enterprises can steadily operate and obtain reasonable profits, and guide the healthy and stable development of shale gas industry. There is no obvious advantage or disadvantage in using rate subsidy or price subsidy, and price subsidy is more simple and feasible. The effect of technology investment subsidy is obviously better than that of scale investment subsidy.