Research On Policies Of Circular Economy Based On Incremental Change Of Institution

China has been faced with an unprecedented period with GDP increasing continuously and people's income improving steadily since the reform. However, there are lots of troubles and problems existing besides the achievements, with recourse and environmental restriction among the most serious matter. Being a country with large population, scarce in average resource possession and frangibility in ecological environment, it's impossible for the economy to grow rapidly based on the over expenditure of energy and raw materials. Building a cycling society, as a kind of developing model to save resources, reduce expenditure and change the waste materials into reusable resources, aims to basically solve the resource and environment dual constraints. Naturally, the circular economy is a kind of ecology, with the character of changing traditional linear producing (consuming) mode into a feedback one. Policies of circular economy are a series of behavioral principle of adjusting, managing and controlling the activities of individual or social groups with the purpose to promote the circular economy. In China, policies of circular economy aim at overcoming the resource and environmental problems resulting from unilateral pursuit in economic growth. For the purpose to solve the problem of market failure, the implementation of circular economy will rely on forceful intervention of the government, moreover, the effect of a policy varies a great deal with institutional environment, policy itself and operative technology. Policies of circular economy has been pushed since the beginning of the century in China, with many related policies carried all over the country, the effect showed unsatisfaction in some areas, namely the policy falure exists to much extent. This dissertation has analyzed the disciplinarian and restrictions in the policy process of circular economy, discussed the optimal approaches of circular economy policy from perspective of institutional change, with the purpose consummate the execution of circular economy.This dissertation gives a systematic research on policies of circular economy and related factors with the methodology of analysis on system, institution, dynamic equilibrium and optimization, from a viewpoint of institutional change theory. It makes a creative research on dynamic equilibrium and course of synergetic evolution, with a dynamic equilibrium model and realizing conditions be discussed. This paper has also proposed two kinds of non-cooperative game models between government and enterprises under circular economy policy, and optimization of government supervision cost under incentive agreements has been discussed. Based on all the conclusions, the paper puts forward the concept of policy poformance of circular economy, its optimal model and approaches, together with a pivot research on incremental institutional reform and consummation.The dissertation considers institution as a basic role in policy execution to explain relation between institution and policy. The frame of institution is more stable, but changes in condition of spontaneous evolution and rational design. The change of institutional arrangement can induce the change of institutional struture; the key premise of policy performance is the accordance of policy and institution, which exerts a promotion to institutional change.The paper makes a systematic exposition of institutional change theory in the frameworks of institutional economy, focusing on the important form of institutional change,named incremental institutional change. The conclusion that incremental institutional change is a general form of institutional evolution thus has been drawn.The premise of the dissertation for further study is to make a integrated research on relative factors and frame system of circular economy policy. Based on a general discussion on technical features, operating mechanism, principle orientation and institutional base of circular economy, the dissertation makes a compositive research on objects, selection of instruments and measures,monitor and control, and evaluation system of circular economy.The compositive framework of circular economy policies, based on operating objectives in different levels, institutional objectives and selection of policy instruments, together with comparison of circular economy policies between developed countries and China also have been put forward.Through the method of equilibrium analysis, the dissertation made a systematic research on dynamic equilibrium and its model of circular economy, and conditions to realize the equilibrium. Mutual relations of circular economy policies and institutional system from viewpoints of synergetics and evolution have also been investigated.The core part of institution is to provide incentive or restrictive mechanism of a society. With the schematic discussion of the incentive mechanism and intergrated factors, concrete intencive forms of institution under circular economy policy are discussed. Research of game analysis between government and enterprise under circular economy were made, with game models in both static and dynamic states in condition of perfect information also been constructed. Moreover, incentive agreements between government and enterprise and optimized mdodel of government supervision cost in principle-agent mode have been put forth. Further more, the paper set forth the concept of policy performance of circular economy by summarizing the works done above. Main restrictions, optimizing measures and related models to policy performance were expored. In practice, some special suggestions about incremental institutional reform were put forward after problems and dilemmas in current operation of circular economy (institutional and non-institutional drawbacks) were analyzed.At last, the dissertation made a positive research on economic policies and their performance evaluating system in building a circular economy in coal resource cities in Heilongjiang province. Focusing on institutional obstacles in the implementation of circular economy policy, suggestions about incremental institutional reform and innovation were proposed as a result.Through the research, the study of circular economy policy and related institutions can be enriched and consummated theoretically; with the aim to improve the policy performance of circular economy in practice, the research can act as scientific conductions in building a circulate economy in institutional construction and policy guidance as well.