Study On The Application Of PPP In Chinese Environmental Protection Industry

In recent years,the problem of environmental pollution has gradually attracted public attention in China.Therefore,the environmental protection industry is increasingly demanding funds.However,as Chinese economy has entered a new normal and economic growth has slowed,coupled with the severe debt problem of local governments,there will be bigger and bigger funding gaps for environmental protection industries,and it is impossible to be improved in a short period.Therefore,introducing the PPP financing model in the environmental protection industry is the most effective way to solve its financing difficulties.The PPP has the advantages of alleviating the financial pressures of local governments,expanding the sources of funds,and improving the utilization of existing funds.It is an important tool for integrating government resources and market resources,and using their advantages in a concentrated way to solve environmental pollution problems collaboratively.However,with the increase of the number of environmental protection PPP projects in China,some problems are beginning to be highlighted.Such as,the problem of dishonesty in government departments,private sector management problems,regulatory problems and imperfect mechanism system need to be solved urgently.This paper first introduces the development status and existing problems of Chinese environmental protection industry,and the application status of PPP in China.Then it discusses the feasibility of PPP model’s application in China’s environmental protection industry from three aspects of government,individuals and comprehensive benefits.Secondly,it analyzes the development status of the PPP in the environmental protection industry,and raises the problems in the development process of the environmental protection industry PPP projects.Then,by using AHP-FCE,this paper analyzes the risk factors of PPP financing projects in environmental protection industry.Finally,it puts forward policy suggestions,including improving the risk management process,strengthening the government-level risk control,and optimizing risk management in the PPP projects.