Investment And Financing Mechanism Of Environmental Protection At Home And Abroad Is A Comparative Study

Environmental protection(EP) needs a lot support from parties in the society, especially large amount of capital investment and management.Due to problems in environmental protection investment and financing mechanism(EPIFM),China faces insufficient and inefficient investment in EP.As a result,it is urgent to establish a sound EPIFM in china that is suitable to our country.This paper is based on theories in environmental economics,public goods, externalities,and project financing.By combing theoretical and case analysis and applying qualitative and quantitative analysis,this paper comparatively analyzed mechanisms of environmental protection investment and financing(EPIF) at home and abroad.After summarizing and drawing on relevant experience in china and other countries,this paper put forward several suggestions on the innovation of EPIFM.Major research results of this paper include:Firstly,there is a framework for EPIFM both at home and abroad.In this framework,participants of EPIF are divided into public and private sectors.Methods of investment and financing include public owned,private owned and public-private partnership ones.China should develop its own mechanism according to its national condition.Secondly,experiences of EPIFM abroad include:diverse participants and channels,developing EP industry and making full use of economic instruments. Comparatively,China reforms on EPIFM by basing on the economic structure reform, and applies foreign capital into EP.China should continue to implement these good practices and draw on experiences of other countries to innovate its own mechanism.Thirdly,the quantitative analysis of this paper reached the result that the total EP investment is positively correlated with GDP and the efficiency of investment,while negatively correlated with investment structure.The paper suggests speeding up economic to provide bases for EPIF and optimizing investment structure.Finally,this paper put forwards five ways to innovate EPIFM.We should improve EP system,establish diverse participants in EPIF,make reasonable definition of rights of all parts,make full use of project financing methods,especially BOT,and develop EP industry.