Study On Application Of Permit Trading Of Water-borne Pollutants For Environmental Management In Shanghai

With the introduction of market economy into China, how to use market-based instruments in environmental management along with the traditional administration and regulatory tools becomes a new task for the government. Shanghai urgently needs these new management approaches to catch up with the international practice.The paper focuses on the permit trading of water-borne pollutants. With description on theories on environmental economy and the cases in other countries, the paper studies the pilot project undertaken in Shanghai in terms of its procedure, success and weak points, and put forward the recommendations.The paper includes six parts. Part I introduces some environmental economic theories related to permit trading; Part II is the case study of permit trading in other countries, including history of policy development; Part III introduces the pilot project of permit trading undertaken in Shanghai in terms of the background, procedure and conclusion; Part VI designs an implementation scheme for Shanghai to further spread this approach in environmental management; Part IV analyses the limits that Shanghai faces to take futher actions; Part V put forward the recommendations in response to the existing limits.