Subsidy is used in many countries as an important instrument to promote energy-saving products. China started subsidizing energy-saving products, including light bulbs and automobiles, in 2009. The subsidized product groups quickly expanded to major home appliances such as air conditioners, flat- panel TVs, refrigerators, washing machines and water heaters. The latest subsidies for purchasing the five types of energy-saving products reached 26.5 billion RMB since June 2012. It is expected that even larger financial budgets from the Chinese government will be allocated to support the wide deployment of high energy efficient products according to the national 12th Five-Year-Plan, which adopted the "energy conservation and emission reduction" as the national long-term development strategy. In this paper, the policy framework of China's Subsidy Program for Energy-saving Products is reviewed. The recent subsidy schemes for air conditioners, flat-panel TVs, refrigerators, washing machines and water heaters are introduced. Based on retail market data, an investigation of the market status for the five types of products is conducted. The subsidy schemes are analyzed in terms of products' properties such as type, size, energy efficiency tiers, price, functional capacities etc. This paper concludes with suggested options to improve the subsidy program.
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