Comparision Of The Reduction Efficiency Of Sulfur Dioxide Emission Between Market Regulation And Administrative Regulation

With the rapid economic development, China’s environmental issues are getting ever serious, and it demand to be resolved efficiently. China has been using the administrative control of the means to solve environmental problems, and has also tried to introduce the use of market mechanisms to address the issue of environmental protection abroad in recent years, such as emissions trading, and the imposition of sewage tax to promote environmental protection and emission reduction.Using the Shanghai general equilibrium model, this paper shows the different economic results of different means of emission reduction, basing on emission reduction speed path, macroeconomic output, residents welfare, and industry segments affect. The conclusions found, the means of administrative controls to reduce sulfur dioxide emissions and promote energy restructuring in the short term with immediate effect, but its policy space is limited, and will inhibit the income distribution to residents tilt, causing structural distortion and in segments within the industry. Emissions trading levy pollution tax saving effect of the market means there is a certain time lag, but it is smaller for the negative impact of the economy; which levy pollution tax impact within the industry is more balanced, but the lack of continuous improvement the effect of emissions trading as the expansion of the scale of the transactions can continue to promote investment and employment to low-pollution industries tilt.