The Research On Finance For Environmental Protection Industry In China

With China’s economic development and the accelerated urbanization process,the environmental pollution problems are increasingly serious. According to statistics, at present nearly two thirds of the city faced with junk siege situation,and more than half of urban faced with water shortage problems. In addition, the environmental pollution accidents are as many as more than2000times a year, and show a rising trend year by year, already have dangered human health and the social stability, have drawn great attention of the government, and strengthen the investment in environmental protection. According to the China statistical yearbook, environmental protection investment is about360billion yuan in China in the period of "9th five-year plan", accounting for0.91%of GDP; During the period of "10th five-year plan" investment is840billion yuan, accounting for1.18%of GDP; During the period of "11th five-year plan", the whole society environmental protection investment is about1.37trillion, accounting for1.6%of GDP. With the growth of China’s environmental protection, the proportion will rise year by year. Under the state council issued the "national environmental protection twelfth five-year plan" forecast that China’s environmental protection investment demand is about3.4trillion yuan to2015. However, the current budget is hard to fill such a huge funding gap. The supply and demand contradictory of environmental protection has become a question of questions restricting the environmental protection industry’s development in China. Solving the financing problem is not only about the future direction of environmental protection industry in China, but also an important way to reduce the pressure on government finances.Paper mainly divides into four parts, first introduced the related concepts and the development of environmental protection industry theory and the theory of project financing, on the basis of this paper expounds the theory of public goods theory and externality theory as the theoretical basis for environmental projects market financing; Second from the perspectives of the amount of investment, the current situation of financing, the structure of investment, the income of investment analyzes the financing status quo of environmental protection industry in our country at present, then puts forward the major problems of environmental protection industry such as narrow financing channels, investment subjects and shortage amount, etc. For building our country environmental financing the necessity and feasibility of the new system are analyzed; Again, this paper puts forward the basic idea of building our country’s financing new environmental protection system, mainly from the government’s fiscal policy financing, indirect financing from financial institutions, a plurality of capital market financing, project financing and other aspects, mainly introduced financial policy financing system, indirect financing and direct financing channels of the environmental protection industry. Fiscal policy finance system mainly include perfecting the fiscal and taxation policies, strengthening the support to treasury-bonds, speeding up the state-owned assets and establishing policy of environmental protection service system and some other aspects; Finally according to the current problems of environmental protection industry in our country putting forward to the constructive suggestions, in order to promote the further development of environmental protection industry in our country, the second part and the third part are the hard core of this article.The innovation of this article lies in applying the principle of economics and having a comprehensive and systematic analysis on the financing current situation and existing problems of the environmental protection industry in our country at present. On the basis of the successful experiences of some developed countries for reference, this paper puts forward to proposals of the new system construction of environmental protection industry financing, including financing fiscal policy, environmental protection industry of indirect financing and direct financing, project financing of environmental protection industry, etc. In addition, this article also analyses some other financing ways and channels. Eventually the efficient way to solve the financing difficulties is market at present in China’s environmental protection industry. Paper’s research and analysis and comparison of different financing ways to the environmental protection industry financing problem lack some relevant quantitative analysis and convincing. At the same time, this article mainly confined to theoretical analysis, the existing deficiency in the scientific nature and operability.