A Study Of Small Towns' Environment Protection In China

Currently, economic crisis which caused by Subprime Mortgage Loan Crisis spread all over the world, and China become the focus of world for how this country to deal with it. Expanding domestic demand is the best way to fill the lack of external demand in the depression. Urbanization is special way for China to expand domestic demand. Now,urbanization has also reached an unprecedented level both in developed countries and developing countries with the rapid development in science, technology and economics. China's urbanization process has entered a period of accelerated development after more than 30 years of Reform and Opening-up. Though similar in major cities, China's urbanization characteristics in small cities and towns based on the dual economy, which various other parts of world. The development speed of small cities and towns is very fast after 1978. The urbanization and the standard of living improved continuously, but with the development brought serious environmental problem.The environmental problems appear in stage in developed countries in the industrialization for century has occurred concentrate in China for just 30 years. 2006, a survey conducted by the State Environmental Protection Administration of China and the National Bureau of Statistics show that in 2004 industrial pollution caused 511.8 billion Yuan for economic losses. Small cities and towns counted more than 50% of that loses. So the environmental crisis caused by the industrial pollution in small cities and towns has become one of the important restricting factors of China's economic development. How to minimize the damage to the environment under the premise of rapid development of small cities and towns has become the focus in the system research area designed by the government.The logical structure of this thesis is base on the Game Theory, the thought of Theory of Social Costs and the Mechanism Design Theory. We make government, enterprise and public as three game objects, including their internal game and the game between them. And we use Theory of Social Costs find the right system that produce the least cost. Then, make the right rules to let the system run. We find that reform the system is the most important factor. After that, we make a comparative analysis between three developing modes in China to determine the government's role in development. At last, make a positive suggestion in the system reform.The writing structure of this thesis is including six parts.Chapter one: Introduction, Introduces the background and the meaning of this thesis. The research ideas and structure summary can be find here. Tell us that the environmental protection in small cities and towns has become a bottleneck of economic development. So it's a urgency for the country.Chapter two: Theory. Based on the research purposes of this thesis, firstly, make a brief introduction of research results at home and abroad, especially the theory research. Secondly, introduce the Game Theory, the thought of Theory of Social Costs and the Mechanism Design Theory which make a preparation as a analysis tool for later part.Chapter three, Current situation: Make a foundation for further study based on a analysis on the trend, characteristics and hazards of the environmental protection in small cities and towns.Chapter four, Factor Analysis: research both from internal and external aspect. And use the theories in Chapter two to analysis the game among government, enterprises and public.Chapter five, Three Cases: analysis the developing mode of small cities and towns by three case-"South of Jiangsu Mode","Wenzhou mode"and"Zhujiang Mode". Make a comparison and find their advantage and disadvantage. Chapter six, Conclusion and Prospect: make a short conclusion and forecast the future of the study.The basic conclusion is the government's responsibility and role is the most important among the three game players. Base on the Game Theory, the thought of Theory of Social Costs and the Mechanism Design Theory, the Government can make efforts in government performance evaluation and incentive system. As a result of the issues of the performance work of local government, the low-cost of enterprise and the livelihood of public, the three players can easily form a"local protection". Therefore, the method to solve this problem is development. Set up system played a crucial balance between the rapid development of economics and preserving the ecological environment. In the last of this thesis we introduced three relatively successful private economy modes. And make a comparative analysis of the three modes and a research on government's role in economic development. Find that economy development must rely on the incentives system of government and related measures. This thesis focuses on the system, and advice constructive suggestions on setting up the system, then explore the direction of further study.