Incentive Effects Of Environmental Subsidy And Pollutant Drainage Fee

In recent years,with the rapid development of the economy,environmental problems are increasingly prominent;the government set a higher environmental requirement for industrial producers.Environmental subsidies and pollution drainage fees are mainly environmental regulation tools,studies on the link between these two tools and the producers’ environmental investment behavior will enrich and deepen the enterprise investment behavior research,getting reasonable use of the limited government environmental resources,contribute to a higher quality economic growth.In the first part of the paper,we points out that due to environmental concerns have external characteristics and common characteristics,which leading to market failure,we need our government to establish environmental regulati ons to regulate market behavior.During the regulatory process,it is very important to select an appropriate regulatory tools,only appropriate regulatory tool can play a role while reduce regulatory costs.Now in our dual economic structure,the state-owned enterprises and private enterprises have to compete in the same market,but they are very difference in obtaining resources,management capability,corporate mission,financing channels,these differences may lead them have different reactions while facingwith the same environmental regulation.In the second part of the article,we reviewed the domestic and foreign related articles about the pollutant drainage fee and environmental subsidies,points out that there nearly no comprehensive analysis about the pollutant drainage fee mechanism and environmental subsidies mechanism,andeach kind of research does not pay attention to the effect of ownership on the regulation of enterprise behavior.In the third part of the article,we firstly analyses the mechanism of action of environmental subsidies,environmental protection subsidies to promote enterprise to increase environmental protection investment in two ways,first it can reduce the environmental investment risk which calied thedirect effect,then it can play the role of signaling which called the indirect effect,but state-owned enterprises makes it hard for these effects due to their basis of abundant resources,close ties with the government and the soft budget constraint,instead,too much subsidies may also increases the organization redundancy problem and resource waste.But environmental subsidies can effectively stimulate the private enterprises to increase their environmenta 1 investment,course it help them effectively relieve the problems such as inadequate resources,financing difficulties and so on.Then we analyzed the mechanism of the pollution drainage fee,it can promote enterprise to increase environmental protection investment in economic way and political way,it may fail to promote the private enterprise to increasing their environmental protection investment,because the private enterprise act only for profits and the drawbacks of pollutant drainage fee,such as too light Punishment and the lack of coercive power,but can effectively stimulate those state-owned enterprises to increase environmental investment,course state-owned enterprises Put more emphasis on public image and they direct regulate by the government.Then we put forward the speculation that environmental subsidy is more effective to private enterprises and pollution drainage fee is more effective to state enterprises.In the fourth section of the article,we collected 175 listed companies,data about pollutant drainage fee,environmental subsidy,firm size,profitability during 2000 to2014,then using STATA13 to test the hypothesis in fixed panel model and GMM model.Through the study we found that:the environmental behavior of state-owned enterprises is mainly affected by policy and the environmental behavior of private enterprise is affected by both profit and the environmental policy;both of the environmental subsidy and pollutant drainage fee can make the enterprise increasing their environmental investment,but the state-owned enterprises’ environmental investment is very sensitive to their pollutant drainage fee,and private enterprises’ environmental investment is more sensitive to the environment subsidies they got.Finally,in the fifth part of the article,we based on the above research results,put for ward that our government should using different tools to regulate the differen tent erpriseaccording to the actual characteristics of their difference in owners hip,our government should pay more attention to fairness when distribution the environmental subsidy for promote the benign competition between state-owned enterprises and private enterprises.Protection private enterprises reasonable profit space when collecting pollutant drainage fee,we would better using regulation in a incremental,induction way and gradually excavating private enterprises’ potential in environmental protection.