A Study On Fiscal Policy To Promote Development Of Environmental Protection Investment In China

The environmental protection investment(EPI) as an important indicator of the strength of the state environmental protection, facing a series of difficulties: the total quantity is in sufficiency, the structure is unreasonable and the efficiency is low. If we can not solve these problems well, we will face enormous pressure on the environment. The market failure phenomenon of the EPI determines these problems should be solved under the government's macro-control. In order to solve these problems, the government needs to use fiscal funds on environmental protection and use fiscal policy to guide the enterprises; individuals and itself correctly invest for environmental protection.The combined method of qualitative and quantitative analysis is used in this paper. At first, the paper defines the concept of EPI and explains the theoretical basis of fiscal policy involved in EPI. Then analysis the amount, the structure, the efficiency. Next analysis the problems of EPI with mathematical models and explain the reasons. At last make full use of fiscal policy to solve the existing problems of EPI.The main conclusions are as follows:First, we are facing a serious environmental pollution, and environmental problems mainly depend on the healthy development of EPI. Second, the current operation of EPI is not satisfactory. The amount is less than the scale of developed Western countries in seventies and eighties of last century. Many years' lack of funds causes a huge loophole. About the structure, we should reduce the statistical standards of urban environmental infrastructure construction investment, and that the reduction of industrial pollution control funds should not be too early. About the efficiency, the social benefits, the environmental benefits are far from ideal.The paper thinks these problems should be solved through fiscal policy. The use of fiscal policy include: clear the powers of EPI and fix them through government budget, full use of taxes, bonds, transfer payments, interest relief for investment in environmental protection and other ways to balance the interests between the principal and promote EPI healthy development.