Western Environmental Investment And Financing System Innovation Research

To solve the environmental problems, we need not only to make an effective economic institutional arrangement, which can meet the requirements of both preventing environmental pollution and stimulating the development of environmental industry, but also to design and develop a feasible and effective economic system. According to the institutions of modern institutional economics, the issue on environmental industry investment and financing system, one of the important aspects of environmental issues, is actually an institutional problem. It involves the problems on the form of options and status determination of natural resources in the economic system. Welfare economics declares the market is inefficient in providing public goods and states that it is necessary to introduce the government intervention to ensure the public environmental interests. On the other hand, market system in certain occasions has the advantage of high efficiency which can never be achieved and replaced by other forms of the system, indicating that the market mechanisms and government intervention have their own advantages and disadvantages. It is because of the frequent occurrence of the dilemma between market mechanisms and government intervention and the complex and fragile situation of the environment industry in western China that the innovation of environmental industry investment and financing system becomes the crucial task for the environmental industry in western China. Furthermore, environment industry should become one of the basic development industries in western regions. However, tight capital constraints, imperfect investment and financing system and the traditional management pattern and idea on system have always prevented it from fast development. Therefore, the urgent task for the development of western environment industry is to rethink the current environment industry investment and financing system, to achieve system innovation, to introduce incentive and restraint mechanisms, to ensure a new system designed from the perspective of official system and property rights, market system, or a combination of the two, which can guarantee that the economic body of environmental resource will choose the policy measure advantageous to promote the environmental industry development from the maximization of its own utility or profit. In this way, the inconsistency between the increasing investment demand in western environmental industry and relatively low investment of the main body will be resolved.With the employment of normative analysis, empirical analysis and comparative analysis methods, this dissertation has made a systematic study on the innovation of environmental industry investment and financing system in western China on the basis of environmental economics, ecological economics, public goods theory, externality theory, institutional economics, financial economics and so on. From the perspective of economics, official and unofficial systems, the first part of the dissertation mainly analyzes the "theory of universals" or preconditions about the innovation that western industrial investment and financing system should meet, and the characteristics of being in close connection with environmental industry. The conclusion got from the perspective of economics is that it is vital and indispensable for both official system and unofficial system to establish clear environmental resource property rights system to undertake effective system arrangements. It is the precondition and the most essential requirement for all the environmental industry systems to fulfill their overall efficiency. The conclusion got from the perspective of official system and unofficial system is that there is some likelihood of low efficiency and inefficiency for both of these two systems. In other words, the two systems have their certain efficiency interval and application boundary, which requires both from theory and practice that an in-depth study on the combination of government and market should be done. And the two conclusions mentioned here are the very innovations of this dissertation. In the second part, the dissertation analyzes systematically on the current situation of environmental industry of western investment and financing system and the status, problems and causes of the norms of the system in order to reveal the practical necessity and urgency of the innovation in environmental industry of western investment and financing system. Subsequently, this dissertation adopts the DEA method to analyze the differences in the efficiency of investment and financing system of China's eastern, central and western environmental industry and the reasons for the differences. Empirical findings show the average overall efficiency level of the environment industry investment and financing system, with the west to be the worst, the middle medium, and the east optimal. The integrated low efficiency in the west is mainly due to the high pure technical inefficiency. That is to say, the core of the integrated low efficiency is the inefficiency of environmental design of industrial investment and financing system. Evidence also points out that industrial investment and innovation environment in western financing system is the key issue of improving investment and financing system, while the key issue of the east is to solve the problem of management efficiency, and the central need to handle both of the issues mentioned in the west and the east to improve its investment and financing system. In the empirical basis, the dissertation compares with the systems of environmental industry investment and financing in Western countries and proposes innovative ideas for western China's environmental industry investment and financing system. Then this dissertation discusses from the three aspects respectively, namely, the government, the market and the effective interface between government and market to analyze the specific issues in the innovation of environmental industry investment and financing system in western regions.In the last part, the dissertation discusses the proposals and safeguards of the innovation in western China's environmental industry investment and financing system. To make western environmental industries be the new economic growth point of the west, the department concerned must foster institutional innovation policy environment, improve the policy of the western environment industry investment and financing system, and establish a trinity of government, business and public to promote the development of the environmental industry in western China.