Study On Performance Analysis Of Eco-Environmental Reconstruction And Fiscal Investment Mechanism Innovation Of West China

The eco-environment is the basic condition for the existence and development of human society and prerequisite for the economic sustainable development. Chinese eco-environmental problems mainly exist in her west areas, where calls for restoration and reconstruction urgently. The reconstruction is a big systematic project that demands huge amount of capital investment. The fiscal investment should be the primary source of fund and yet not enough currently. Moreover, the low efficiency of the use of fund leads to the unsatisfactory overall performance of reconstruction. The way out lies in the institutional innovation, that is to reform the fiscal investment mechanism to set the relations of related stake-holders and absorb private capital into the project. The paper consists of six chapters.Chapter 1 briefly introduces the background, goal and meaning of topic selection. Then it summarizes the literature on environmental problems, countermeasures and gives remarks. It also offers the train of thought, method and some possible innovation places.Chapter 2 analyzes the need and effect of fiscal investment in eco-environmental reconstruction. It centers on the public finance theory, public goods theory plus externality theory and argues that the fiscal investment should be primary undertaker of the project.Chapter 3 gives some experiences and practices of environment protection and reconstruction both home and abroad, which features by the Philippine community forestry, Japanese "security forestry", British subsidy for receding farmland to forestry and Rudong county case in Jiangsu Province east China.Chapter 4 summarizes and evaluates the current status of eco-environment in west China, namely water scarcity, soil erosion, desertification, vegetation breakage and pollution. This condition ascribes to the "tragedy of commons" and "logic of collective action". The paper argues the emphasis of eco-environmental reconstruction rest with vegetation restoration.Chapter 5 evaluates the performance of current reconstruction efforts and point out some problems, using the" receding farmland to forestry or grass" as an example. Then it uses game theory to analyze the reasons of unsatisfactory performance, especially the games between government and farmers, central government and regional governments, governments in west area and their east counterparts respectively.Chapter 6 comes up with five aspects for institutional innovation, those are financing, benefit incentives, risk-sharing, motivation & compensation, constraint & coordination mechanisms, in which gives prominence to eco-environmental property rights incentives and compensation system. It proposes using governmental purchase and commercial way instead of subsidy and administrative way in eco-environmental value compensation.