Research On Environmental Investment Mechanism Of Enterprises

Since China’s reform and opening-up,society and economy have achieved great improvement.However,resources and environment have received great damage at the same time.Total amount of pollutant discharge far exceeds the environmental capacity.Environmental risk continues to accumulate,and has already endangered public health and social harmony.It has become a major challenge on the way to achieve green development and to build a well-off society in an all-round way.Environmental protection is an important issue of the sustainable development of the society.But environmental pollution has the effects of negative externalities,so environmental cost internalization is the only way to environmental protection,and also the important means to counteract environmental resource constrains during the process of a country’s economic development.Based on the concept of environmental cost internalization,in order to lower the environmental consuming cost of environmental pollution control and resource quality decline,enterprises should invest in environmental protection and develop clean production technology.This way it can reduce and even eliminate environmental pollution by the roots.This is not only the result of the pressures that the stakeholders such as governments,customers and medias put on enterprises,but also the inherent requirement of maintaining and enhancing the productivity and competitiveness of enterprises.In an enterprises’ environmental investment mechanism,enterprise is the major liability subject and government is responsible to lead.With the environmental protection situation getting worse,the input that government putting in pollution management gets larger and larger.It keeps increasing its regulation level on enterprises’ pollution management,and introduced a series of new policies regarding environmental protection.However,since enterprise has made large investment on environmental protection in the beginning,with high cost,it is hard to gain investment income.High pollution and energy-consuming enterprises are,therefore,unwilling to invest in.Government needs to provide incentives for them to put investment in environmental protection.During the process,customers and stakeholders should also actively participate in.To some extent,their consumer behaviors influence enterprises’environmental investment decision making process.This article argues that enterprises’ environmental protection investment mechanism is different from enterprises’ self-directed investment normal mechanism.From the view of sustainable development,enterprises’ environmental protection investment mechanism is an interdependent relationship formed among enterprises,government,customers,and stakeholders to manage costs,profits,restrictions of enterprises’ environmental protection investment,and eventually to improve environmental performance.In order to manage the relationship among the stakeholders of environmental performance,and to supervise and urge enterprises to invest more in environmental protection,a long-effective environmental protection mechanism and regulation-incentive policies should be established.It is meaningful to our country’s economic development,environmental protection,and green sustainable development.The main theoretical principles of this article are the theories of Stakeholders,Externality and corporate social responsibility.First,from the point of major participants of enterprises’ environmental protection investment mechanism,which is also the environmental performance stakeholders,this article discusses the roles that enterprises,central government,local government,and the consumers play in environmental protection.It explains the internal meaning of enterprises’ environmental protection investment mechanism,and the relationship between environmental cost internalization and environmental performance.By analyzing stakeholder’s scheme and strategy,it indicates the changes and impacts that make on environmental performance.Based on the analysis of these strategy,the article further discusses the economic feasibility of enterprises making environmental investment under the restrains of environment sustainable development,and identifies environmental performance optimization constrains faced by the enterprises when implementing environmental cost internalization.Then it establishes an optimization model which puts maximizing net present value profit under environment sustainable development as objective function.It can analyze enterprises’ decisions on pricing of environmental investments,achieving break-even production and sales,and incentive policies provided by government.It can bring in actual cases to verify the model.Besides,based on investment decision made by individual pollution enterprise for environmental cost internalization,and from the point of coordinating environmental protection investment of the entire supply chain,the article talks about the internal cause of supply chain member enterprises’cooperation,builds puppy chain sustainable development model under the constrains of pollutant emissions and carbon emissions,analyzes stakeholders’ decision making behavior while supply chain enterprises implement environmental cost internalization;And at last,it analyses governmental policies driven factors and interact logics,from the point of view of enterprises’ environmental debit recovery mechanism.Under the goal of gradually eliminating enterprise environmental debts,it plans to build a long-effective mechanism for environmental protection and regulation-incentive policies.The main contents and outcomes of this research are as follows.Firstly,the analysis of enterprise’ environmental protection investment mechanism does not only focus on enterprise itself.From a sustainable development point of view,it studies on internal and external factors of enterprise’ environmental protection investment,and connects enterprises’ environmental protection investment decision with environmental performance evaluation,and analyses an interdepend relationship among stakeholders formed to improve environmental performance.Secondly,through building three restrain conditions of environmental capacity,government regulation and consumer preference,and using mathematical programming and case study methods,it establishes an optimization model to verify the feasibility of enterprises making environmental investment and analyse the incentive policies provided by government.Thirdly,based on the innovative thinking of environmental cost internalization of supply chain,from studying individual enterprises’ environmental protection investment behavior to coordination of environmental protection investment of the entire supply chain,it analyses impact made by supply chain enterprises cooperation,and upgrade enterprises environmental performance research to the level of supply chain’s environmental protection decision making,and government environmental protection policies and incentive policies making.From the point of environmental protection constrains,it further studies the field of energy saving,which puts carbon emission contains into consideration.Based on these,by studying supply chain enterprises environmental cost internalization decision making model,it analyses supply chain environmental investment coordinating mechanism,and studies how supply chain enterprises can achieve environmental protection and energy saving target under the government policies by transfer pricing and the strategy of production and sales.Fourthly,it introduces the idea of environmental debts into the studies of the relationship of enterprises’ environmental actions and government environmental policies.It also suggests to build the assurance measures of enterprise’ environmental protection investment mechanism from the view of environmental debts,such as government intensifying law enforcement to raise the cost of illegal,establishing enterprises’environmental credit system etc.,and eventually to achieve sustainable development and balance between environment and economy.To conclude,this article puts more contents into the enterprises’ environmental protection mechanism.By studying the environmental protection investment decisions made by individual enterprise and supply chain enterprises,it can serve as references for government during its environmental protection regulation-incentive policy making process.