Application Research On Public Private Partnership Of Financing In Environmental Protection Projects In China

With the rapid development of economy, environment problems are getting more and more attention from the public. The amount of money spent on environment-protection becomes bigger and bigger, from 101.5 billion yuan in 2000 to 903.8 billion yuan in 2013, which leads to a compound growth rate of 18.3% per year. At the same time, since environment-protection is public and capital-intensive, money input totally by local governments will not only do nothing good to solving the problem of lack of capital, but also result in low efficiency and structural imbalance of environment-protection investment.At first, this thesis introduces characteristics of environment-protection industry, concept of Public Private Partnership(PPP) and literature review of home and abroad, followed by current situation of the industry and problems of investment and financing mechanism. Then comes the case study, project of electricity generated through burned household waste in Taizhou. After introducing its participants, programmes and basic statement, the thesis analyses its motives, environmental benefit, relationships of rights and obligations, capital structure, risks, particularities and existing problems. It finds that with PPP model, Taizhou established the special purpose vehicle with Dynagreen Environmental Protection Group Co.,LTD. And this project relieves finance stress of Taizhou government with a fairly good environmental benefit, thus having good reference to others. However, problems still exist, such as lack of law system, unjust risk allocation and risk of price rising. At last, it comes up with several suggestions, such as policy development, appropriate allocation of risk and proper rate of return for private capital.