Research On The Government Incentive Policy Of The Internalization Of Environmental Cost

The rapid development of economy in China causes serious environmental problems,which has been regarded as a direct threat to the sustainable development of economy in China.Euramerican countries proposed carbon emission reduction requirements on China in response to global warming internationally.Therefore,facing threats of international emission reduction pressure and the deterioration of domestic ecological environment,the government needs to make effective policies to alleviate this situation urgently.At present,our country is in the period of industrialization;the demand for environmental resources and energy is still ascending.Thus it is necessary to study the government incentive policies on the internalization of environmental costs in depth and ascertain the factors which affect the internalization of environment cost.In the meantime the game strategy adopted by each interest group should be figured out.On this basis,the incentive policies on the internalization of environmental costs can be optimized,which provides a theoretical foundation and policy reference on the incentive policy design and implementation on internalization of environmental costs of our government.From the point of view of economics,environmental resources and energy have the character of public products.HoIver,no one undertakes the corresponding duty on environmental costs after the long-term excessive consumption.A large number of external environmental costs continuously deposit,leading to the failure of environmental resources of market allocation.Defining the property rights and policy incentives should be adopted in order to realize the internalization of environmental costs,so that the costs of enterprises and society are equal,thus the coordinated development of social economy and the ecological environment can be achieved.The paper builds the basic research ideas from theory and practice aspects and takes an organic combination of basic research and applied research.Firstly,the basic research is located in and the fundamentals of internalization of environmental cost and government incentives are focused on.Through theoretical analysis and the basis of empirical research on the influence factors of external environment environment cost,the influence factors of the internalization of environment cost are analysed and the dialectical relationship betIen the government incentives and construction on internalization of environment costs is uncovered.Moreover,this paper focuses on the stakeholders' game on government incentives promoting internalization construction of environmental costs.Secondly,the application of research is positioned in and the role of government's incentives for promoting the internalization construction of environment cost is focused on,including the micro and macro approaches of internalization construction of environmental cost and so on.Then taking example by the EU government's incentive policy experience of the internalization of environment cost,suggestions of government incentive policy about the internalization of environmental cost are put forward.In accordance with the above writing ideas,the main contents of this paper are as follows:1)I define the internalization of environmental costs and the government incentive policy,the reason of the internal environment cost is analyzed through the economical analysis of the external environmental cost and the environmental resource value,and point out why environmental cost internalization should be carried out.On this basis,I use the principal-agent theory and incentive regulation theory to analyse government incentive policies of internalization of environmental costs.It is concluded that the market mechanism can not adjust the impact of external environmental costs,so the government needs to calculate the environmental capacity,and then design environmental cost internalization incentive policy.Enterprises should be stimulated to actively carry out internal environmental governance and eliminate external impact of environmental cost.2)Exploring the problems and deficiencies in the application of China's internalization incentive policy of environmental cost by analyzing the evolution of China's environmental cost internalization policy.The environmental cost internalization policy in China has undergone an evolving process,but the environmental cost internalization mechanism and policy have not yet formed a complete system,lacking systematic and overall coherence.So it can not really control and regulate overall and at strategic height,resulting in the increasing external environment cost of exceeding environmental load during the process of economic development.According to the main factors which influence Chinese external environment cost,this paper expands the STIRPAT model,and establishs a model of measuring the influence of external environmental costs.According to the empirical research of panel data from 1990 to 2014 in China,the size of the population level has the greatest impact on environmental cost,the carbon emission intensity has the minimal impact,and the city level and environmental absorption capacity have no obvious effect.For the variables which have significant impact on external environmental cost,this paper presents main influencing factors of external environment cost internalization under the control of population scale,including environmental regulation,foreign trade policy,emissions trading,environmental technical efficiency and public environmental awareness.3)The purpose of the implementation of environmental cost internalization is to encourage enterprises to become the external environmental costs undertakers,thereby the environmental problems caused by the externality of environmental costs can be solved.Because of the development of Chinese market economy,the main body of environmental cost internalization becomes more and more diversified and its driving force has a fundamental change.In the fifth chapter I conduct game analysis of interest groups of environmental cost internalization.Neighbouring countries cross-border environmental cost internalization game models are established respectively among developed countries,developing countries and only two countries when discussing the cross-border environmental cost internalization.When it refers to the environmental costs internalization within the country,the game models of the government and enterprises,the central government and the local governments and the central government,local governments and enterprises are built respectively.In conclusion,it is necessary to establish constraint mechanism to improve the global ecological environment quality.Besides,in order to realize the environmental cost internalization in China,central government should formulate the incentive policy of environmental cost internalization as soon as possible and then its guiding role can be played.4)The internalization of environmental costs is the key factor which can determines if the sustainable development can be achieved and plays an important role in the construction of ecological civilization.In the development of the world economy,many member countries of the European Union have experienced the tortuous road of treatment after pollution and have many successful experiences in the implementation of the environmental cost internalization.The sixth chapter on EU environmental cost internalization policy practice in this paper finds out gaps and experiences for our country in the environmental cost internalization from the aspects of tax policy,state compensation,emissions trading.5)Based on environmental cost factors and game analysis of stakeholders,according to the application problems of incentive policies of internal environment cost in China,I take example by the experience of the EU's and then put forward recommendations on improving the government incentive policies of environment cost internalization including the incentive-oriented internal system of environmental cost,the price incentive policies,tax incentive policies,ecological compensation incentive policies and emissions trading incentives policies.