Optimizing Research Of China's Environmental Regulation Under WTO Background

To attend WTO means our country needs to accept its rules about environment. The environmental"escape clause"of WTO becomes an important reason for the lost caused by environment factor which was suffered by our country's enterprises during foreign trade. Environment and trade topic has been paid much attention to in Doha Round negotiation, the negotiation situation indicates that environmental"escape clause"will cover more and more aspects, which means the impact to our foreign trade caused by environment factor will become more and more serious.Our research to China's environmental regulation system shows that, the level of our environmental standard system and environmental policy system is too low to adapt to the new environmental situation under WTO background, which requires our country to carry out environmental regulation optimizing to raise the level of our environmental regulation. But to raise the environmental regulation level will increase the burden of enterprises and is not propitious for the development of foreign trade also."Poter Hypothesis"solves this problem, it points out that, environmental regulation with proper design can increase the enterprises'competitive power, it shaped theory basic for the research of environmental regulation optimizing. The key point of designing proper environmental regulation is to avoid incorrect environment standard and welfare lost during policy undertaking. This paper mentions a solution proposal which is to achieve the best environmental standard through environmental policy recursive by building up a recursive model between environment and economic.And then starts optimizing research of environmental regulation, analyzes environmental standard optimizing and put the main part of environmental regulation optimizing on environmental policy optimizing. Designs tradable emission permits with government intervention which is easy to adjust standard by the government through adjusting emission permits according to the exchange situation of emission permits exchange, and finally achieves recursive. After analyzing its welfare situation when being undertaken, we proved the advantage of this policy and mentioned a resolution method of environmental regulation optimizing. At last, we found a computation model to analyze the relationship between environmental regulation level and foreign trade, and prove the reality meaning of environmental regulation.