Impacts of Factors of Production and Public Policy on the US and China Offshore Wind Industries Analysis

Abstract

In 2023, global carbon dioxide emissions climbed to a staggering new high of 37.4 metric tons, a grim situation driven primarily by the massive consumption of fossil fuels, particularly coal. In this context, the offshore wind power industry has emerged as a key part of tackling climate change and emission reduction challenges. This paper provides an in-depth analysis of how productive factors and public policy work together to shape the development of the offshore wind industry in the United States and China, highlighting the importance of land availability, labor market quality and size, and capital investment flows in shaping the future of the industry. At the same time, the paper also carefully examines how the government can effectively attract and promote investors to participate in offshore wind power projects through a series of public policies, such as tax incentives, subsidies and other financial incentives. The results show that China has a clear lead in the offshore wind market compared to the United States. This paper aims to make insightful suggestions for the sustainable development of offshore wind power industry in both countries through comparative analysis of the advantages and disadvantages of the two countries.