Building Economic Incentives And Service System To Solve The Problem Of Agricultural Nonpoint Source Pollution

The agricultural non-point source pollution has become the most important sources of pollutants for most of the countries. Many governments have taken actions to prevent such pollution technically and economically. Using the economic incentives has attracted most of the experts from different countries. Economic incentives can internalize the externalities, not only the negative but also the positive, in the most effective manner. But most of the economic tools are based on the developed economy and can not adapt to China's.This thesis analyzed the situation of Chinese agricultural non-point source pollution, including fertilizer pollution, pesticide pollution, and agricultural plastic film pollution and so on. The key feature they all have is the great consumption and the low usage rate, causing negative impact on the environment. Using compensation to internalize the positive externalities, such as the promotion of organic fertilizer, and tax to punish the non-environmentally activities, like the usage of pesticide, will be the most important method.Through analyzing the evolvement of Chinese agricultural-environmental management system and policy, the main problem existed in Chinese agricultural non-point source pollution management policy is few economic incentives and more command and control measures.This paper analyzed the problems in the process of promoting organic fertilizer from economic perspective. Positive externality and regulatory system are the two main factors blocking the promotion of organic fertilizer. Positive externality that has not internalized increases the farmers'consumption cost or the enterprises'production cost. And the problems in the regulatory system decrease the profit further. Therefore, the fundamental reason blocking the promotion of organic fertilizer is the positive externality that has not internalized, or the lack of economic incentives. The analysis of the fertilizer cost from the vegetable base of Qingpu District can also prove such problem.According to this analysis, our government should carry out some economic incentives in order to prevent the agricultural non-point source pollution and improve rural environment. Such measures include the establishment of preferential fiscal and taxation policy and the improvement of our agricultural product market.