A Study On The Problems Of China's Environmental Pollutions And Treatments In An Open Economy

As economic globalization keeps developing, the world economy booms in an unusual way, many countries gains such a lot in developing their domestic economy from participating in this globalization process, and the connections in economy, politics, cultures gets more deeper. As a big developing country, from the Reforming and Opening Policy on, China gets a part in world product division, absorbs a large amount of foreign direct investment and enlarge its world trade, and reaches a great economic achievement as a result. Now China is the second greatest economy in the world, and its citizens are getting a higher and higher income level.Similar to other countries, especially developing countries, however, China is worsening its natural environment in a high speed, and faces more and more environmental pollutions in the mean time, because it chooses a vulgar development way. It also becomes the second biggest country in pollution emissions. Because of the enhancement of its citizens'income level, the pollution problem gets even more abstraction from the government and citizens. Thereby, there is a growing amount of investment delivered in environmental treatment from the government of China every year.Its put that there is an ignorable connection between developing countries' environmental pollutions and their degree of economic development or economic openness. Their relatively looser environmental policies are special reasons of the flowing in of foreign capital to highly resource-exhausting and environment-polluting manufacture industries in these countries. So it takes a seriously high environmental price to their economic development. The Pollution Transferring Hypothesis was very popular for a long time. And argues always last in academic fields and social areas. A large amount of literature uses various kinds of theoretical and econometrical methods to analyze this problem, but agreement has never been reached.To consider this problem, this paper makes an analysis on the problems of China's environmental pollutions and treatments in an open economy theoretically, based on the former results. Furthermore, it tests how economic indicators and environmental indications connects in the long period, and construct Vector Auto Regression Models to depict them, using the economic and environmental data of provinces in China from 1992 to 2009. Finally, some policy advices will be given based on the statistical research.