The Analysis Of Environmental Policy Effects Under Cooperative And Non-cooperative Policies

While the requirement on the environment constantly improving, the ecological environmentis getting worse and worse, which sharpens the contradiction between them. To ease thecontradiction, numerous countries around the world take the environmental policy as theregulation tool. Simultaneously, as the world economic cooperation deepens, the mutualpenetration arises through trade, investment and human resources, the emergence of onecountry’s environmental problems will necessarily impact on other countries.This paper takes the environment technology choices as endogenous choice. It firstlysummarizes the previous research and conducts the research on the emission tax and totalamount control policy. To make a general conclusion, the study takes the technology spilloverinto consideration, investigates the enterprise and the government behavior under differentpolicy, and then analyzes the corresponding environmental technology incentive effect andsocial welfare. To research how the endogenous variable influences environmental policy tools,the paper uses comparative static analysis. It helps to understand the mechanism of curbemission things and guide relevant countries adjust the domestic policy and trade policyproperly.By building the social welfare function and the enterprise profit function, this studyinvestigates firm incentives in develop the clean technology under different policies. It concludesthat under any policy regime, whether firm incentives are insufficient or excessive, it related tothe marginal environmental damage and the rate of clean technology spillover. When themarginal unit of pollution damage exceeds the specific value, total emission control policy issuperior to the carbon tax policy in promoting the technology innovation. In addition, undereither regime of price or the quantity regulations, policy cooperation will necessarily enhancesdomestic welfare, but the firms’ innovation incentive is uncertain.