The Function Analysis That The Industry Of Environmental Protection On The Sustainable Development Of Economy In Our Country

The environmental protection industry is a key element in the process of the sustainable development of economy. This paper combined with actual situation of China, from mechanism, pathway, field, size, analysing the function which environment protection industry on the sustainable development of economy from theory and empirical.First, discussing the meaning、characteristics、contents of the environmental protection industry, the concept of sustainable development of economy, analysing systematically the literature about the function which environment protection industry on the sustainable development of economy at home and abroad. Second, discussing the mechanism of action and the function pathway of the environmental protection industry to the sustainable development of economy. The mechanism that Environmental protection industry on the sustainable development of economy reflected in three aspects:through investment and the multiplier effect of investment led to promote the growth of economic; the effects of correlation and penetration led to the development of the growth of economic, and the technology of environmental protection improves the quality of economic growth, improves the environment. The effect pathway realized by three subsystems:economic, social, and environmental. In economic, by investment to promote the growth of economic; In social, by the investment to expand the scale of the enterprise of environmental protection, improve the environmental infrastructure, improve the environmental management ability, so as to promote the employment, raise the income, promoting the development of urbanization, improve the quality of life, and promote social progress and fair. In environment, by the application of environmental protection technology, to reduce the energy consumption, improve the quality and efficiency of economic growth, push forward the environmental management and improve the quality of environment. Third, referencing the related literature of domestic and international and establishing the index system of the sustainable development of economy which is suitable for China’s national conditions, and by using data standardization, the method of entropy to achieve the index quantification sustainable development of economy on our country’s. Using the principal component analysis method completes the factor analysis of the sustainable development of economy, improving the index system of sustainable development of economy. Taking the environmental protection industry investment for the independent variable, the sustainable development of economy for the dependent variable, the regression analysis showed that the environmental protection industry has positive role in promoting the sustainable development of economic, the effect coefficient is0.59; Further regression analysis found that with the development of environmental protection industry, the biggest beneficiaries is social subsystem, followed by economic subsystem, the last is the environment subsystem. The development of environmental protection industry has a bigger role in the sustainable development of economy, in the subsystems of economy、society and environment, and social subsystem is the largest beneficiaries. The end of the paper, combining with the actual situation in our country, putting forward the feasible suggestions from the aspects of guiding ideology of environmental protection industry, oriented by the market, and confirming the key areas of the environmental protection industry for development, and promoting the innovation of science and technology.