The Analysis On The Impact Of Corruption On Our Country’s Environmental Pollution Under Different Marketization Level

In recent years, the frequent outbreak of the haze pollution events awakened the environmental awareness of the whole society, the broad masses of the people generally realized that the environment around has become very fragile under 30-years of rough development mode. According to the estimation by Chinese Academy of Sciences, at present, the loss caused by environmental pollution and ecological damage has accounted for 15% of GDP, which means that 7% of the economic growth is at the price of the loss rate of 15%. Coincidentally, levels of corruption in China are stubbornly high, the 2015 "impression of corruption index" published by the Transparency International organization shows that, among 162 countries, China’s clean government index is ranked 83 which is under the borderline. Several researches abroad have showed that corruption is an important factor causing environmental pollution. Thus, studying the relationship between corruption and the environmental pollution has important practical significance. Taken the fact that since the reform and opening up of China, Chinese marketization process has gained significant progress in the transition from the planned economy to the market economy, which means it might disturb the environmental pollution effects of corruption into account, This paper take the market factors into the analysis framework, investigating the relationship among the three comprehensively.Firstly, this dissertation summarizes related literatures both at home and abroad. Then, the article defines the concepts of corruption, marketization and environmental pollution and analyzed their present situations in China. Next, this paper focused on analyzing the related mechanisms of corruption to environmental pollution. On this basis, Stata software and Chinese time series data of corruption and discharge of industrial waste from 1997 to 2011 is used to conduct the Granger causality test inspection. Based on the Granger result that corruption is indeed the cause of pollution emissions in China, This paper takes the market factor into the same framework, using the market level as the threshold variable, constructs the threshold model of corruption’s impact on the environment. And further more, it examined the relationship between corruption and environment by using threshold regression method based on the data of 30 provinces in China from 1997-2009.The results show that:(1) There is a long-term stable co-integration relationship between corruption and China’s industrial pollution emissions, corruption is indeed the cause of pollution emissions in China; (2) The marketization has a significant negative effect on the impact of corruption on the environment. When the marketization level is low, corruption will improve the environment, reduce environmental pollution, but with the improvement of the marketization level, corruption will aggravate the environmental pollution, and with the market level cross a higher threshold, the deterioration effect will increase. Finally, based on the above analysis and conclusion, this paper suggests that, with the expansion and the deepening of the market, we should prevent corruption brought by marketization and the adverse effects of corruption on our country’s environment from three aspects, namely, anti-corruption level, market level and environmental regulation level.