Promoting The Economic Growth Under The Constraint Of Environmental Capacity: Economic Analysis And Policies

It is shown in practice that environmental policy is a very important means used in many countries in the world for effective protection and improvement of environment in the process of economic development. According to China's objectives of development, a well-off society is going to take shape in the first twenty years of 21st century. Therefore, we will face an incompatibility between high-speed economic growth and limited environmental capacity. Using environmental variable as an important factor in economic growth, this paper studies the relationship between economic growth and environmental protection on basis of a survey of international and domestic experience as well as an analysis of the environmental data from field survey. In consideration of the basic facts in China and from a new perspective, starting with the question of how to improve the efficiency of economic optimization under the constraint of environmental capacity, and by studying the interaction between economic development and environmental evolution, we put forth an Evaluating Index System For Cleaner Production based on discharge efficiency and make some tentative research on the mechanism of Emission Right Trading. We arrive at the following conclusion:â‘ To improve the best pollutant's discharge model in environmental economics, factors such as objective of economic development, environmental capacity and pollutant's discharge efficiency should be included. The current best pollutant's discharge model only solve the optimal pollutant's discharge quantity as in a condition of minimum social cost, but fails to consider constraint of environmental capacity on pollutant's discharge quantity. This means that we can discharge more pollutant if we can afford higher social cost. With factors like technological change, improvement in pollutant's discharge efficiency, environmental capacity etc. included, the improved best pollutant's discharge model can be used for the modeling of optimal socio-economic development under the constraint of environmental capacity.â‘¡Based on the macroeconomic and environmental data, the turning point of Environmental Kuznets Invert-U Curve is not observed in China, and China may be on the left of the Environmental Kuznets Invert-U slope. As the special social and economic conditions and developing mode of China, we attach importance to economic growth, but underestimate the importance of environmental capacity and efficiency in use of natural resource. This gives rise to a tendency of unduly pursuing economic...