The Economic Roots Of Environmental Problems And Countermeasures

With the development of Chinese Economy, more and more people paid attention to the environmental and resource problem. There are serious environmental pollution cases and bottlenecks of resource and energy around the country. For example, we faced nationwide seasonal power supply shortage and price rise of raw materials recent years. Environmental protection policy has been included in relevant laws as a basic policy of our country. At the same time we face good opportunity to improve our environmental and resource protection policy during the transformation from planning economy to market economy. A set of environmental and resource protection policy had been implemented in the past 20 to 30 years. But most of them are still based on administrative instrument. This article has reviewed the creation of environmental problem and the response of human being and then elaborated the economical root of that problem and the reason of difficult to settle them in micro economic point of view. It also introduces how to deal with it using market mechanism and the current environmental protection policy and cases in other countries. Reviewing the current situation of Chinese environmental protection policies, advises has been given how to set up environmental policies based on market economy.This article suggested that to use market mechanism should be a key part of the improvement of Chinese environmental and resource policies. Market policy and administrative instrument are not contradictory each other. The market mechanism often go with pricing, taxing, financing, property right, information discourse, public involvement etc. To enforce those also needs supporting from macro economic policy and relevant laws and regulations.