Coordinated Development Of Economy And Environment And Local Government Behavior

As industrialization and urbanization progresses, most of areas in our country are facing pressures of economic development and environmental protection. How to promote the coordinated development of economy and environment has become a major issue facing local governments. Therefore, it is theoretically and practically significant to study the coordinated development of economy and environment and local government behavior.Taking the Rizhao City of Shandong Province for case study, this dissertation gives a two-way analysis of government behavior in economic development and environmental protection, based on the Theory of Government Behavior, Public Choice Theory, and Sustainable Development Theory. It begins with a vertical analysis of government behavior of Rizhao Municipal Government in economic development and environmental protection since the beginning of reform and opening-up, and the results suggest clear phrase characteristics. The focus of Rizhao County from1978to1988was economy rather than environment; from1989(when the city was founded) to1998the municipal government stressed economic development while taking into account the environment; whereas since1999special efforts have been made to promote the coordinated development of economy and environment.Secondly, a horizontal analysis is given of behaviors of Rizhao municipal government in economic development and environment protection since1999. Results show that since1999the government has spared no effort in developing cyclic economy to build an eco-city relying on its sound ecological environment, which contributed to the relative coordination of economic growth and environmental protection. However, as an underdeveloped coastal city, Rizhao has not yet given up its conventional emphasis on heavy chemical industry in making development strategies, and some environmental indicators have worsened owing to the introduction of some heavy chemical industry projects to develop its local economy, which leads to the discrepancy between environmental protection and economic development.What is behind the above-mentioned behavior of the local government? Both internal and external causes are analyzed in the dissertation. Among the factors that affect local government behavior, the internal one, and also the fundamental one, is the trade-off between cost and benefit. In reality, the high correlation between economic growth and benefit of the local government has greatly stimulated the initiative and enthusiasm of the government in developing economy, and has become a lasting motivation for local economic development. System-oriented factors involving the assessment mechanism for promotion of cadres with GDP as the core criterion, the system of fiscal decentralization, and supervision and control mechanism constitute the external factors, stimulating and restraining the local government behavior as the objective environment. Both external and internal factors work in combination to determine the behaviors of local government at a specific time and space. The combined effect of external and internal factors generally results in the local government more inclined to develop its local economy.Based on an analysis of the factors affecting local government behavior, the dissertation suggests that the key to standardizing local government behavior and promoting coordinated development of economy and environment is to improve system arrangements and combine the incentive and restriction of systems, so that a sound interest-oriented mechanism could be established to improve local government behavior. Specifically system arrangements involve the following:first, the assessment mechanism for promotion of cadres should be improved, with public service replacing economic indicators as the main criterion, and more emphasis laid on responsibility to people rather than responsibility to higher authorities; second, the existing system of fiscal decentralization need to be reformed to make rational division between central and local administrative power and financial authority; third, an integrated decision-making mechanism on economy and environment protection should be constructed to convert management system of authorities concerned with economy and environment from enclosed management to integrated and coordinative management system; fourth, it is necessary to bring into full play all social forces to form a multi-side participation mechanism for coordinated development of economy and environment.