To Promote The Development Of Circular Economy Of Fiscal Policy

Since the industry revolution, mankind social and economic development changes everyday with the sharp increase of substance wealth. Unfortunately, mankind economic activities always follow an one-way linear process of "Resources→Production→Consumption→Waste", which causes a great quantity of resources to be consumed and environment to the grave damage, the community public and hazardous events emerge in an endless stream, and initiates people to rethink the problem of resources together with environment. How to achieve sustainable development is a world-widely concerned issue nowadays. As a kind of economic growth pattern, circular economy is the fundamental change to the traditional linear economic pattern, which fits the thought of sustainable development. In circular economy, the entire economic system, including production and consumption process, follows a closed substance circle of "Resources—?Production—?Consumption—?Recycling resources". The fundamental target of circular economy is to promote the virtuous circle between the ecosystem and economic development, and to achieve the coordinated and sustainable developing of national economy. At its simplest the circular economy can be described like this: a maximization of resources and a minimization of pollution, which has become the first selection to develop economy for every country in the world. Recently, the developed countries, such as Sweden, Denmark, Germany, the USA, or Japan, turn to either developing circular economy or establishing cyclic social vigorously one by one.For a long time, China is proud of its "vast territory and abundant resources". But the traditional linear economy development pattern making natural resources decreasing increasingly, deteriorating ecology environment and leading the economic & social sustainable development to be subjected to serious challenge, all of these ask us to reconsider our economic growth pattern. Learning from international experience, as a new efficient pattern of ecology economy, circular economy can resolve the problem of natural resource exhausting and environment pollution, and it is the only choice to make the economy development sustainable. It is an important content of "the Eleventh Five-Year Plan" to "build a saving society and develop circular economy" in China, which has pledged to an ambitoious blueprint on development of circular economy. However, circular economy has the property of public goods, so we must use the "visible hand" of government to adjust the running of market while we rely on the "invisible hand" of market. Fiscal and tax policy can be proved to be an efficient policy instrument. Besides Fiscal and tax policy, some factors are also necessary to circular economy, such as law, financing, account, technique and so on.The organization of this dissertation is as follows: the first chapter is introduction; then this dissertation is divided into three parts according to the content, the first part is basic theory including chapter 2,3,4, the main content is related to the theory of circular economy, the innovation of government function and the effects of Fiscal and tax policy, this part provide a theory basis for the further analysis; chapter five is the second part, which is international experiences, the main contents is to compare the concrete fiscal and tax policies of other countries which develop the circular economy, we can draw some common features from this compare; The third part is policy implication including Chapter 6, 7, 8, and this is the most important part of this dissertation. Since government supporting is necessary for the development of circular economy, we research how accelerate the development of circular economy through optimizing expenditure policy, adjusting tax policy and coordinating with other polices. The details are as follows.Chapter one: Introduction. It includes a brief introduction on researching backgrounds, current research both at home and abroad to this problem, the researching scheme and arrangement of this dissertation, the main conclusion and innovation points are also provided. Chapter Two: Theoretical Analysis of Circular Economy. In this chapter, I introduce the theory of circular economy, and summarize current state and main problems of our country's circular economy, then point out the necessity to develop it further in our country. The core of circular economy is to use and recycle natural resources in high efficiency, circular economy follows the rule of "reducing, reusing and recycling", and Its fundamental features are "lower consumption, lower discharge and higher utilization". This is a sustainable economic growth pattern, which has changed the traditional growth pattern fundamentally. Although we have acquired some achievements, problems also exit. Hence, our government should take effective actions to develop circular economy from now on.Chapter Three: Circular Economy Development and Government Functions Innovation. It mainly introduces the general theory of government functions and researches the orientation of the government functions between market economy and circular economy. In traditional market economy, enterprises and society all pursue the maximizing profit, and enterprises rarely care about external cost or social cost. This will result to negative external effect and cause the market to be out of order. The development of circular economy is an effective resolution of this problem. The government must take actions to innovate its functions while the circular economy is developing quickly.Chapter Four: An Analysis of Fiscal and Tax Policies' effect in Circular Economy. This chapter mainly analyzes the fiscal and tax policies' action mechanism and effect in circular economy. It also compares different policy instruments' effects on circular economy. In the process of accelerating circular economy development, fiscal and tax departments have duty-bound and play the tremendous actions as significant government department in macroeconomic regulation. On the one hand, the economic behavior of protecting environment and saving resources can be encouraged, on the other hand, those of damaging environment and wasting resources can be prohibited, on the condition that expenditure and tax policies can be executed appropriately. Thereby, the goals of economy, environment and the social benefits can be achieved at the same time. This is theory foundation correctly to utilize fiscal and tax policies for accelerating circular economy development.Chapter five: International Comparison on Fiscal and Tax Policies in Developing Circular Economy. It analyses separately fiscal and tax policies of Germany, Japan, the U.S., the Netherlands along with else several countries who take in the process of developing circular economy, which consist of fiscal subsidies, fiscal credit and levying-taxes policies and tax expenditure and so on. To every country, these policies play great important role in accelerating their circular economy development. Summing up the total experiences taken by every country in developing circular economy, we may obtain the useful inspirations for developing circular economy in our country.Chapter six: Optimization on expenditure policies for developing circular economy in China. The contents include where public expenditure is used and how to improve public expenditure in circular economy. The right application of expenditure policies not only can resolve the industrial structure of economy by means of allocating the financial funds stress, but also can indirectly make the demonstration effect, guide social resources to the right direction, and accelerate the development of businesses of resources saving and environment protecting. The current expenditure policies not only have positive effect but also have negative effect on developing circular economy. In view of the harmful effect to the circular economy development of present expenditure policies, first of all, we ought to fix the stress of expenditure supporting. Then, we may take concrete measures to accelerate circular economy development, including optimize the expenditure composition, improve the green purchase system, support the ecological agriculture, "green" the tax expenditure and so on.Chapter seven: Thinking on tax policies for developing circular economy in China. The contents include the focus, the following rule and the concrete concept of tax policies regulation in circular economy. Handling the economic leverage of tax policy rightly may accelerate the development of science and technology, the economization of resources and the protection of environment, thereby can achieve the sustainable development of economy and society. This chapter sets about the ordinary theory of tax policies, lay stress on studying systematically the following rule, the fundamental focus to regulate, the reformative route of tax policy in circular economy and so on. Based on the empirical research on the current the tax system of our country, the paper proposes the way of regulating tax policy which can accelerate the circular economy development, along with the effective mechanism of levying and administering tax which can insure implementing the tax system to run.Chapter eight: Coordination of interrelated policies for developing circular economy in China. The contents research into establishing policy environments for developing circular economy, such as law institutions, financing, auditing and technology. The social mechanism construction of circular economy development is a complex systematical engineering, which need all departments and all industries work together with harmonization. At present, the core of this work is to put up the consummate policy system for accelerating the circular economy development, including improve laws and institutions for circular economy development, enhance the government support of finance policy, establish the green national economy calculation, research the feasible route of ecological technology innovation and construct a complete system of policy support which can accelerate the development of circular economy.