Study On The Investment And Financing Mechanism Of Environmental Protection In China

In recent years with the rapid development of economy,China's environmental pollution has become increasingly serious that it goes beyond what the economy can shoulder.It is clearly specified in the 11^th Five-Year Plan of National Economic and Social Development that an environment-friendly society is needed to promote the harmonious development between economy and environment.What is critical in environmental protection is investment and one severe issue facing China's environmental protection during "the 11^th Five-Year Plan" is the huge gap of funds.It is therefore of great realistic and historical significance to study systematically of China's investment and financing issues in environmental protection in order to set up as soon as possible and perfect the investment and financing mechanism in line with China's national conditions and characteristics,which will give great fund support to environmental protection and ensure the successful realization of the goals set in "the 11^th Five-Year Plan" and promote a sustainable,healthy as well as harmonious economic and social development in China.The paper first of all looks back at the development of China's investment and financing mechanism in environmental protection from its start,development to its gradual improvement.Based on relevant data the paper states the present situation of China's investment and fund-raising in environmental protection from investment structure, investment body and financing channel,as well as investment effect.The paper concludes that the present mechanism has such problems as simplistic and inadequate investment and financing body,lack of innovation in investment channel and inefficient investment functioning.Then in view of the existing problems together with economic development, environmental protection and goal of investment and financing system reform in China,the paper proposes that an investment and financing mechanism of environmental protection be set up which has the characteristics of market-orientation and pluralism.Because of the broad range in investment field and its complexity,the simplistic investment body and channel can not meet the demand of environmental protection for fund,so it is of first importance to distinguish investment projects,which is the basis for constructing a mechanism.Then according to the content and features of projects the investment body should have a play in the suitable field with its specific priority,and based on conventional financing channels and means,actively explore and innovate them so that different functioning modes of investment and financing can be formed in different environmental protection fields.In this process market should be given to its full play in allocating resources and funds and through policies and supervision government should push forward the marketing degree of environmental protection,absorb social funds into environmental field,improve investment efficiency and bring about a virtuous development of investment and financing in China's environmental protection.Finally the paper puts forward that to construct an investment and financing mechanism of environmental protection with the features of "pluralism and market first,government second",the following things need to be dealt with correctly.First,make clear of the duties and responsibities of investment body and handle properly the relationship between government and market in investing in environmental protection.Second,various financing channels need to be innovated and perfected and investment enlarged.Last,auxiliary policies relevant to investment and financing should be formulated and improved,and more investment body and social funds should be absorbed into environmental protection field.