Research Of The Effects Of Government Regulation On Eco-industry In China

Nowadays, the development of science has become a more and more commonview in the world, the development of ecological industry is a important way if weshould realize the sustainable development of economy and society. We canreasonably use natural resources and protect the environment by development ofeco-industry, since it is a economic development model of sustainable development.Due to the eco-industry has obvious externalities and information asymmetry, torealize health and reasonable development the government should regulate it.However, which methods government should select and what effects will appear aftercarrying out the regulation are very important problems that the paper shall argue.The paper focus on the above problems. First of all, it combs the theory ofeco-industry and the government regulation to lay theoretical basis for the paper. Thenit elaborates the necessity of government regulation, from the increasingly seriousenvironment problems, information asymmetry and ecological industry positiveexternality the paper has explained that the government regulation is necessary. Afterthat, the paper discusses the eco-industry development status and the practice ofgovernment regulation from domestic and foreign.Meanwhile, in the empirical part, this paper constructs a set of influenceecological industry development index system, by making use of granger causalitytest to analyze China’s eco-industry regulation effects. The results show that thegovernment regulation can promote the development of ecological industry, whichtells us that the economic means can promote the development and bring about themost obvious effect. On other hand, the compulsory administrative means also havethe obvious effect, but there is a gap compared with economic means.Furthermore,theeffects of technology and information means are not obvious.Finally, the paper puts forward some suggestions from the following severalaspects. The government should improve legislation, increase pollutant discharge fee,expand the emissions trading range, increase the environmental protection investmentand mobilize public participation in environmental protection.