Environmental Economic Analysis

Environmental problem is one of the most critical problems in the world, which makes troubles to the global economy and human existence. The deterioration of Environment has been drawing the human beings to a very dangerous situation.To regard the environmental problem as the subject of economic research lies in the economic inbeing of the environmental problem. The economic inbeing of the environmental problem brings it to the realm of economics, makes it possible to analyze the environmental problem with the help of economic analytical tools and to resolve the environmental problem with the help of economic means.The formal introduction of the environmental problem into the economics made start the research of the environmental problem in the economic circle and brought into being a brand-new subject called environmental economics.Though the environmental problem becomes more and more important in economics, some issues relating to environment have not yet been settled down, the discrimination of national economy indicators to environment as a example. Such discrimination cannot measure the overall strength of a country, but also indulges and even more, seduces the destruction of environment. The establishment of green national account can add environmental factors to national economy indicators, juxtaposing the economic development to the environmental changes in one frame. So the decision-makers can evaluate the harmonious degree between economy and environment more precisely and hold sustainability of the future development.Environmental problem owes to various reasons. The environment destruction brought by economic development, known as the environmental price of economic development, is unavoidable. The substitutable relationshipthat gives evasion of responsibility for the environmental problem can never be the excuse of environment destruction. What's more, there is mutually promotional relationship between economic development and environment, that is, better environment can accelerate the economic development while faster economic development can provide the physical basis of related techniques of environment. Grasping and handling the two relationships skillfully is the prerequisite for economic development and environment to achieve harmony.We can find another important cause of environmental problem basing on the microeconomics----the externality. The externality of environment induces the overuse of environment. There are many resolutions to the externality. The traditional resolutions such as tax, government direct regulation and subsidy, are not effective due to the their limitations. More advanced economic controlling means were provided and better effect was gained by the establishment of environmental property right and environment pricing means.China is a developing country and started its environment work only recently. Many serious environmental problems exist at present. Environmental problem does harm to our sustainable development strategy and our international visualize. So drawing lessons from other countries is necessary for us to reform our imperfect environmental policies.