Research On Investment & Financing Mechanism And Effects Of China's Environmental Protection Industry

This research attempts to achieve the following goals.(1) To explore aframework and a system to observe and evaluate the investment & financingmechanism of China's environmental protection industry.(2) To summarize helpfulmeasures and actions through comparisons and empirical analysis on internationaladvanced environmental protection industries.(3) To search out the problems andtheir roots by analyzing,evaluating and econometric verifying the present investment& financing mechanism and effects of China's environmental protection industry.(4)To demonstrate the solutions and measures on how to enhance the operatingefficiency,to improve the operating effects and to expand the channels of China'senvironmental protection industry's investment & financing mechanism,so as toaccelerate the development of China's environmental protection industry.By the process of empirical analysis and normative analysis,comparison andinduction,overall analysis and case analysis,qualitative analysis and quantitativeanalysis,conclusions are reached in this research.(1) The key point to examine and improve the investment & financingmechanism of an environmental protection industry is to design a"tailor-made"investment & financing mechanism suitable for the industry.Thus this research mustdefine the"environmental protection industry",describe the features of its operationand make economic analysis on it before observing the interaction mechanismbetween the investment & financing mechanism and the development of anenvironmental protection industry.On this basis,this thesis studies the investment &financing mechanism of the international advanced environmental protectionindustries.The last and the most important part of the thesis is to review and evaluatethe present investment & financing mechanism of China's environmental protectionindustry and to offer targeted suggestions and the solutions to cure the problems andimprove the situations. (2) In China,"the environmental protection industry"can be interpreted as"theindustrialization result of environmental protection conducted originally by thegovernment".The investment & financing mechanism provides capital and funds forenvironmental protection industry,while the development of environmental protectionindustry,in its turn,makes it necessary and vital to improve investment & financingmechanism.China's current investment & financing mechanism of environmentalprotection industry cannot meet the requirements of capital and funds,and so restrictsthe development of environmental protection industry.(3) The international advanced environmental protection industries,such asJapan's,America's,European Union's,build up good examples for China:diversifying the investors,exerting the systematic leading function of the government,taking advantage of the market system to encourage the firms or financial institutionsto invest in environmental protection industry,making clear the responsibilities andobligations of the investors,enhancing the environmental investment,diversifying theinvestment models,putting new environmental taxes into practice,and so on.(4) As to the current investment & financing mechanism and its effects,thereexist many deep-seated problems.Increasing the environmental investments,heightening the operating efficiency and improving the environmental investmentstructure will accelerate the development of China's environmental protectionindustry.The increase of GDP and the heightening of investment efficiency arepositive factors and vital to the development of China's environmental protectionindustry.Moreover,the negative factors,like the unreasonable investment structure,calls for the attention and the improvement so as to ensure an ever-lastingdevelopment of environmental protection industry.(5) To improve the investment & financing mechanism and to develop theenvironmental protection industry are a systematic and comprehensive project.Thisresearch suggests that policy makers should take into consideration China's specificnational conditions,stage of development and the comprehensive reform process,inclusive of social,economic and financial reforms.They also should pay closeattention to the essential characteristics,the status and the operational features of the environmental industry.On this premise,they can first make an effective andcompatible connection of government's systematic and leading function withresources allocation function of the market,then fuse the fiscal mechanism andfinancial mechanism.The possible solutions to getting rid of the state and bringingforth the fresh to investment & financing mechanism of China's environmentalprotection industry includes:constructing an environmental fiscal system,expandingthe financing channels in the capital market,taking advantage of environnent andeconomic means,steadily developing project financing mechanism,creating otherinnovative financing methods and so on.