| Environmental issues bursting, ecological environment deterioration ,shortage of natural resources,under such circumstances, China's environmental policy is highlighted, Environmental policy is based on the public power of representatives of government agencies in order to achieve a given period of environmental policy objectives to address environmental problems and in some sense to take a variety of environmental protection and rational use of natural resources, measures, methods and norms combined.In environmental policy, the choice of policy instruments for the effectiveness of the policy has an important influence.Market-based instruments as new tools to shape the role of governance in the environment are emerging,the reality of China's environmental pressures and governance environment, a single tool for the status quo, forcing us to explore more effective governance tools.The introduction of market-based instruments to promote the improvement of China's environmental problems, through the implementation of market-based instruments to promote more effective environmental policies plays a role.The application of any policy instrument is not smooth, market-based instruments is no exception,the pattern of the original policy because of the introduction of new tools to change.The original interest in the implementation of new tools will also be due to be adjusted,so the market-based instruments of environmental policy in China,faced with the introduction of the limitations and difficulties,needs to continue to explore more effective ways to market-based instruments to play a positive role in reducing its negative effects. Based on the above logic, this design framework is as follows:IntroductionIntroduction is mainly to tell the reasons of choosing the topic, writing significance, and literature review, thesis research ideas and methods, and introduce the main framework of the paper.Chapter I: Environmental policies and the basic theory of policy instrumentsEnvironmental policy directly faces society environmental problems, when a national or regional eco-environment hazards people's basic production and living, environmental factors become the major obstacle to social development, environment issues which rose from the public to public policy issues ,have become the focus of the Government's concern , environmental policy has emerged.Environmental issues reflect the relationship between the two levels: First, reflecting the relationship between man and nature; Secondly, the environmental problems are the problems of relation between human beings .It is a reflection of the adjust on distribution of interests among the people and the interest among people. From the scope of the main body of environmental policy, it not only contains the government, but also contains the supra-national level, international organizations. From the scope of environmental policy, environmental policy and environmental issues are generally closely related to the direct policy. Environmental policy shares the common attributes with public policy, namely, authoritative, normative, public sex and other characteristics, from the particularity of environmental policy point of view, environmental policy also has a broad participation, clear targeting, clarity, as well as the interests of the directional characteristics of the global and regional.Policy instrument is an important branch of theoretical research of public policy, as well as emerging area of public policy research. Policy objective is a state the government wants to achieve or expect. While policy instruments are effective way to achieving policy objectives. The research indicated that lack of knowledge of policy instruments often leads to policy failure. Policy actions taken by people face a variety of choices, not a policy program or not just a solution. However, this choice is also limited, not aimlessly choice. The choice of policy instruments should adhere to the principles of fairness, efficiency and feasibility of the principle of principles. Generally considered the effectiveness of policy tools is the policy tool to achieve the policy objectives of the extent of problem-solving for policy level. Policy goals, ideology, target groups, implementing agencies, as well as policy tools "path dependency" should be considered in the choice of an effective policy instruments.Chapter II: the basic principles of market-based environmental instrumentsThe approximate way of thinking how to choose environmental policy instruments is that, according to the nature of environmental problems, examining the role of policy instruments mechanism, a systematic study carried out between the two, and thus selects the appropriate policy instruments to address environmental issues. The external environment issue has obvious characteristics. There are possibilities in the environmental field also face a market failure and policy failures. There are also risks and uncertainties.Based on the above characteristics of environmental issues, environmental policy, market-based tools to solve the problems need to address environmental issues on the internalization of externalities, while coping with market failures and policy failures, the risk for environmental problems and grasp the direction of environmental policy. Pigou Theory and the Coase theorem is the theoretical basis for a market-based instruments of environmental policy, their methods to solve the issue of externalities are the continuation of the market mechanism and the concept of economic interests play a role in changing people's behavior. The difference between them is the degree of intervention and the intervention by the government. Pigou believed that market failures lead to resource allocation activities of the Government's intervention, the intervention of the government's role must follow the law of value, whether it is the government tax or subsidy to market mechanisms as a reference standard. Coase believes incomplete, unclear property rights of the market lead to market failures, and ways to deal with this kind of market failure can only be solved by market, which he thought should further improve the market system, clear property rights, establish a market trading system platform. The two kinds of theories applied to the practice of environmental policy, The concrete form of market-based instruments based on the two theories are different, in the practice of environmental management in various countries, the market-based instruments is by no means a single form, but has a variety of style. Market-based environmental policy instruments derived from the theoretical tools are: environmental charges / taxes, subsidies and reduce subsidies, emission trading tools, and return the deposit and so on.ChapterⅢ: the basis of practice for market-based instrumentsWith the process of country's industrialization and urbanization accelerating, the environmental problems have become a bottleneck in China's economic and social development. Ambient pressure forces China to seek a more effective environmental policy tools to better address economic development and environmental protection conflict. In the planned economy era, the environmental policies established initially, and actively explore a variety of policy instruments to address environmental policy issues. Since the reform and opening up, the market mechanism gradually gained the status of the basic market-based mechanism in resource allocation and spawned market-based instruments for exploration. The Party's ideas shift from focusing only on economic growth, GDP growth into economic and social development.Under the guidance of scientific concept of development, more emphasis have been put on the successful experiences of the instruments achieved by other countries and regions .to a certain extent ,promote China's Market-based instruments into use. In the U.S., Emissions trading Instruments are widely used in air pollution control, water pollution control, etc., and have achieved great results. EU countries are committed to an early exploration on the market-based environmental policy instruments,and achieved significant results in the field of environmental taxes ,through which not only protects natural resources and ecological environment, but also enhance the entire members of the community concerns on environmental issues and work together to promote the development of environmental protection. With The Government's policy learning ability enhancing, not only gain experience and lessons from their own development, but also learns from other countries in practice consciously and effectively promoted the implementation of market-based instruments.Chapter IV: Application of market-based instruments for empirical analysisIn the early period of the environmental policy in China, the state would try to use economic incentives to solve environmental problems. Although in the planned economy era,the market——oriented exploration has early started on the environmental pollution ,but because of the legal system and people's awareness of limitations, and many other factors, it has not been fully developed. Market-based instruments as a command - control of the existence of complementary tools, which are being constantly developed and improved.Since the reform and opening up, the traditional economic structure, social structure have been taken place in some new changes, affecting people's ideas and behavior choices. Market-oriented as a basic theme of China's reform and opening up, promote the rapid development of economy and society. Can such a mechanism be applied to the environmental policy, the adoption of economic incentives to change the way people's behavior may be environmental problems in the proper meaning. There are three historical stages of market-based instruments for environmental policy. The first stage, from 1973 to 1991, during this period the main charging market-based tools are tools, and through legislative means to determine the legitimacy of the status of the charging instrument, and in practice and gradually improve and develop this tool form in practice. The second stage was from 1992 to 2001, with the establishment of market economy status, the market's basic position in allocating resources becomes even more significantly, environmental problems brought by the rapid development of China's economy becomes more apparent. During this period, the country's major markets to explore chemical industry have: sewage charges, ecological compensation tools. The third stage: Since 2002, the scientific concept of development proposed, the ruling Party pay more attention to livelihood issues, management of environmental issues. Market-based instruments of environmental policy to actively promote the charging instruments, emissions trading tools, ecological compensation tools, tools such as green credit policy in the environment have received the application. A pilot emissions trading tool in Taihu Lake region has a very distinct characteristics, for promoting the other basins of the application of emissions trading tool plays a leading role in promoting China's river pollution control to change the way the integrated use of policy instruments to solve environmental problems has an important meaning, and as a simple case of a description.Chapter V: limitations and difficulties in the market-based instrumentsIf Market-based instruments in environmental policies in China want to play its expected role, it is necessary to estimate the possible effectiveness as well as space and conditions specifically; limitations included cost uncertainty caused by market-based instruments, as well as the unfair distribution of market-based instruments such as the limitations of its own mechanism. From the operational level, the implementation of market-based instruments will lead to an interest adjustment, bringing co-ordination between government departments as well as the relationship between government and enterprises, which will inevitably harm the interests of some people, often hinder the market to promote effectively. There were also difficulties triggered by operation because of inadequate preparation. The plight of the political level, the choice of policy instruments is not only a technical activity, but also a political activity. The political acceptability, as well as the goal of government departments, led to market-based instruments greatly reduced the effects of policies, at the same time, the multi-governmental plight brought by instruments, to a certain extent, weaken the government's political responsibility.The plight of the community level, the implementation of market-based instruments will inevitably change people's lifestyles, consumption habits change, environmental protection, not only in language, but also in action, while people's actions will be influenced by traditional customs, personal preferences as well as the practical interests of implications.Chapter VI: Meaning of optimizing market-based instruments in environmental management in ChinaIn China's environmental policy, the application of market-based instruments face a variety of problems, there are many institutional barriers to the implementation of market-based instruments and will inevitably lead to the restructuring of the interests, lifestyle changes, which may affect the effectiveness of market-based instruments. In order to effectively optimize the market-based instruments, to play its role in China's environmental governance, we should analyze the role of market-based tools for the scope and operation mechanism. Understanding of the law of market-based tools is the first step, only when a clear limitations and problems of its existence be cleared, can it be better improved and developed. Construction of the institutional foundation for market-based instruments to strengthen the law to strengthen the role of market-based instruments to enhance different laws, regulations, and synergies between the systems, reduce conflicts between laws and regulations, market-based instruments caused confusion, arbitrariness and so on. Market-based tool does not play a role spontaneously, it still needs to promote the organization,and therefore we need to reshape the organizational structure and strengthen the regulation in the implementation. How to promote the social forces to implement the instrument .from the practice of our environmental policy, citizen participation in policy processes that will help the cause of social forces to promote environmental protection and to play environmental NGO functions through mechanisms for citizen participation. To carry out international exchanges and cooperation, and promote the exchange of instruments of international environmental level, market-based instruments to promote sustainable innovation.
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