Research On The Investment And Financing Modes Of Urban Sewage Treatment Of China

The correct choice of the investment and financing models of urbansewage treatment of China is the key to solve the financial problems ofsewage treatment. Generally, the Investment and financing modes of urbansewage treatment includes government financial expense and market fundraising. Urban sewage treatment belongs to the public utilities with thecharacteristic of quasi-public goods, which is characterized by both publicgoods and private goods. With the acceleration of the economy developmentglobalization and urbanization, the environmental problem has become one ofthe chief problems which are concerned by the countries all over the world.Some problems, such as inadequate investment, low service efficiency of thefund and so on, always lie in the urban sewage treatment of China. In thispaper, the research on the investment and financing modes of urban sewagetreatment of China plays an important role in the solution of theabove-mentioned problems.Based on the quasi-public goods characteristic of urban sewage treatment,this paper makes empirical analysis on every investment subject and sourcesof fund and also analyzes the real facts of the investment and financing modesof urban sewage treatment of China, combining with game theory and Eview5tools in econometrics, by means of analyzing the development course andsuccessful experiences of the quasi-public goods investment and financingmodes at home and abroad. Therefore, this paper provides reference for theselection of the investment and financing modes of urban sewage treatment ofChina. The main results of this research are as follows:The empirical results of game theory and measurement indicate thatthe investment and financing of urban sewage treatment of China require thecorporate efforts from governments, enterprises and the public. In the processof urban sewage treatment investment and financing, private capital plays anincreasingly important role and its function has gradually surpassed that of government capital. From another aspect, the low utility function ofgovernment capital shows the low utility of it. However, the government is stillin the place of supervision in the whole process. In the future, the selection ofthe investment and financing modes of urban sewage treatment of China willfollow the principle: takes the marketization as guide and takes governmentcapital as supplement.This paper mainly research on the investment and financing modes ofmarketization, this paper makes comparative analysis on the advantages anddisadvantages of present domestic quasi-public goods and the marketinvestment and financing modes of urban sewage, and puts forward somefeasible investment and financing modes: improved BOT、TOT modes, DBOmodes, PPP modes, ABS modes, PFI modes and sewage rescue investmentand financing modes. As to the introduces the following ways for the selectionof government finance investment and financing modes in that of urbansewage treatment of China: to levy environment tax, to issue environmentlottery and to design environmental protection bond.