The Effect On Environmental Cost Internalization To Chinese Environmental Sensitive Industries

The conflicts of the environment and trade are a long-standing problem. Along with the development of economic globalization, the conflicts are more and more serious. As we all known, our manufacture have competitiveness in the world economy, and they are the great pillars of our economy. But most of them are environmental sensitive industries. They will cause serve pollution if we don't pay more attention on them, including the process of obtain raw material and consumption, and also to be threat to the safety and health for the workers. Meanwhile, they have to spend lots capital to develop the technology for pollution treatment. More and more facts indicate that pollution of environmental sensitive industrials have serve influence on our ecological environment without count in the cost of production. As for these phenomena, this paper is basic on the theoretical research on the internalization of environmental cost and competitiveness of trade-related at first, and then expatiate the domestic and international reasons about environmental cost internalization in our environment sensitive industries. In fact, energy consumption and discharge of waste water, waste gas, and waste residue are the fundamental factors on the impact of competitions for our environmental sensitive industries. Trade has not reflected environmental cost in the market price of the goods and service properly, such as natural utilization of resources, prevention and cure of the environmental pollution etc. Thus it leads to environmental resources and degeneration of natural resources,"prices twist". Meanwhile, the International Treaties of Environmental Protection are the international factor on the impact of competitions for our environmental sensitive industries. Basic on these empirical parts, establishes models and coefficient matrix to reveal their correlation on an industrial level. And then analyzes effects mechanism upon competitiveness of environmental sensitive industries. The basic way of solving the conflict is to include the environmental cost in the production cost, and embody the rareness of environmental resources, and dispel its exteriority, which is also named the internalization of environmental cost. On the microeconomic level, the cost and the price of products are risen in a short time and the products loses competitiveness in the international market, but in the long time, the factories improve their technology. For different industries, environmental cost internalization forces the capital shifts into industries that good for environment. With the proper means including the environmental cost in the market price of the goods and service, and dispelling"price twisting", it will lead the environments to be utilized properly and trade that develop at this moment will realize resource to be optimally disposed. On a macroeconomic level, it influences the flowing of the goods of international trade and challenges to the existing trade system. At last, basic on the theoretical research on the internalization of environmental cost and competitiveness of trade-related and empirical analyzes about the domestic and international reasons about environmental cost internalization in our environment sensitive industries above, gives some advise in order to adjustment of industrial policy and redirection of trade strategy as well as conforms to the trend of building circle economy and economical society.