Establishment Of Analysis Framework Of Development And Investment Opportunities Of Environmental Industry And Its Application Study

Since its birth in1970’s, environmental industry has been playing an importantrole in China’s environment protection and economic growth. Currently,environmental industry is no longer just a support of environment protection, but isconsidered as a new economic growth point of China. As an emerging strategicindustry, environmental industry will certainly gain remarkable developments infuture. However, the current definition and classification of China’s environmentalindustry are obsolete; factors which impact the development of environmentalindustry have not been identified systematically; an analysis framework ofenvironmental industry has not been presented. The above problems preventgovernments and enterprisers from making scientific decisions (political orcommercial), thus stunt the development of China’s environmental industry.Regarding to these problems, this study presents a new definition andclassification, based on the current development of environmental industry in China.In order to enable governments to take scientific administrative measures, this studyintroduces Diamond Model to environmental industry, and identifies its influencefactors systematically.Based on industry classification and factors identification, analysis frameworkfor each environmental industry is built, which makes analysis of environmentalindustry from perspectives of industrial chain, business model, developingenvironment, supply&demand, economic performance, competitors, and finallyidentifies the current problems, development directions and investment opportunitiesof environmental industry. In order to use this framework and make an analysis onChina’s sewage treatment industry, a database containing1020enterprises is built,and some indicators of these enterprises are analyzed. After a study on annual reportsof16listed companies in the industry, the economic performance of them is analyzed.By statistical work on almanac data, this study also calculates the “12th-Five Year” sewage treatment demands in prefecture and above-level cities, county-level cities,and county cities of each province. The analysis reveals that sewage treatmentindustry is confronted with problems such as foreword competition in equipmentmarkets, the declining profitability of enterprises of construction and operation. The“12th-Five Year” investment opportunities of this industry include: the constructionof sewage treatment facilities, the construction of pipeline network, and upgrade andmodification of the running facilities, investment demand of which amountrespectively to82.8,105.4, and38.3billion RMB. Based on the above conclusions,suggestions on policies and commercial decisions are offered to administrativedepartments and enterprises.