Study On The Effect Of Chinese Environmental Protection Investment Structure To The Efficiency Of Pollution Control

In recent years, the problem of environmental pollution is the focus of attentionfrom economists, especially the problem of industrial pollution. In order to reduce theenvironmental problems brought about the development of industrial economy, theChinese government and enterprises carry out a large number of industrial pollutioncontrol, investment in environmental protection has become an important drivingforce to promote the sustainable development of economy, society and environment.The investment structure of industrial pollution control in Chinese is businessinvestment in the main, supplemented government investment. Due to environmentalproblems in the regulation by the market mechanism can not be solved effectively, thegovernment environmental pollution control in guiding the market has become anindispensable part.Firstly, this paper is based on the review of previous studies, in the theoreticalpart will introduce the government investment and enterprise investment inenvironmental protection into sustainable endogenous growth model, and the resultsshow that the proportion of investment in environmental protection affect investmententities’ pollution control efficiency. In order to further study of the main structure ofthe investment in environmental protection, this paper analysis industrial pollutioncontrol in market failure, government failure and government environmentalregulation, which lays the theoretical foundation for the analysis of the impact ofenvironmental protection investment structure on the performance of industrialpollution. In order to reveal the relationship between government investment and enterpriseinvestment in environmental protection, the framework of game analysis of rationalcondition is constructed in this paper in environmental pollution control, thegovernment is introduced into the game theory analysis framework, which gameequilibrium results show that: the government investment in environmental protectioncan effectively drive enterprise investment in environmental protection. Secondly, inthe empirical analysis, this paper uses related data of Chinese30provinces from2001to2010, based on preliminary statistical analysis of the environmental protectioninvestment structure and industrial pollution control performance indicators, and usessimultaneous equation3SLS regression analysis of the relationship between the mainstructure of Investment in environmental protection and performance of industrial pollution control and analyze the influence of the ratio of environmental protectioninvestment on industrial pollution control performance in the single equationregression. Empirical test results show that the enterprise environmental protectioninvestment on industrial pollution(industrial wastewater, industrial emissions,industrial solid waste emissions)with emission reduction, and improving corporateenvironmental investment proportion can improve industrial pollution controlperformance, but the government investment in environmental protection has apositive impact on industrial pollution emissions and increasing governmentinvestment in environmental protection can promote the enterprise investment. Tofurther verify the relationship between government and market, this paper analyzesthe pros and cons of the two environmental protection investment caseThe results show that:（1） Chinese enterprise investment in environmentalprotection is conducive to improving the performance of industrial pollution control;（2）Government investment in environmental protection shows investment failure、guiding role;（3）Improving corporate environmental investment ratio is contribute toimproving the performance of industrial pollution. Finally, the article proposes policyrecommendations about improving and optimizing the investment structure based onthe theoretical, empirical test results and case studies, which has important implicationfor the industry to improve the performance of pollution control.