On China's Environmental Protection Industry Development And Mechanism Innovation

In the 21st century, China is witnessing rapid economic development. However, China's environmental issues are increasingly evident at the same time. As a potential new industry, the environmental protection industry will not only have a significant impact, for China's building of a resource-conserving and environment-friendly society, but also the development of national economy as a whole. Also, as a growing industry, China's environmental protection industry has many drawbacks, which demand the support and guide of the industrial policy. We should keep reform of the investment and financing mechanism, operation mechanism and price formation mechanism based on China's national conditions, so as to enable the potential of China's environmental protection industry into a real economic strength and industrial competitiveness.In this paper, environmental economics, welfare economics, public economics, externality theory, public goods theory are mainly used. Based on theoretical explanations, combined with data and charts, the analysis in this paper include the current status quo and development prospects of China's environmental protection industry, as well as the problem of investment and financing mechanisms, operating mechanisms and charge strategy. Through comparison of the condition of foreign countries and China, some corresponding countermeasures are put forward.In order to widen the investment and financing channels and diversify the investor of China's environmental protection industry, the innovation of industrial policies in taxation, financial, legal are needed. To improve the operational efficiency of environmental protection industries, the industrial policy should be market-oriented and Government should also play a role in the corresponding. A better price formation mechanism depends on the definition of property rights and the institutional measures such as sewage charges.Investment and financing mechanisms, operating mechanism and the price formation mechanism are inter-related and connected as a whole. Only through the market-oriented path and rely on the government guidance at the same time, China's environmental protection will have a bright future and truly benefit both to social and economic progress.