Government Environmental Governance In Economic Growth

In recent years, with the rapid development of China's economy, the environment problem has been increasingly severe. The wide range of haze weather reminds us environmental governance is in urgent need. Rapid economic growth is important, but we should not simply pursue economic growth while ignoring environmental problems, which can lead to people's health problems. To some extent, the environmental problem is also a developmental issue. Suitable pattern of economic development will help improve environmental quality, which the government must consider. Therefore, it is meaningful to understand and analysis the intrinsic relationship between environmental quality and economic development.In the early 1990s, Grossman and Krueger found inverted u-shaped relationship between the environmental pollution and economic growth for the first time, and put forward the "Environmental Kuznets Curve" (EKC), which provides the theoretical basis for people to understand the relationship between economic growth and environmental quality. The later scholars found that the shape of the EKC can be affected by the regional economic development, the selection of pollution index, econometric model, industry structure, technology, population, foreign trade and government policy, so that the relationship between the economic growth and pollutant emissions becomes more complex. For both of accelerating economic growth and improving the environment quality, the government is in dominant position. Government policy must balance economic growth and environmental quality, so this paper mainly studies the effect of government policy on relationship between economic growth and environmental quality.This paper uses the panel data in 30 provinces of China from 1998 to 2014, testing the empirical relationship between industrial pollution and economic growth under the comprehensive influence including industrial structure, technology, population, and international trade. Adding the intervening variables of emission charges and environmental subsidies, the paper further discusses the effect of government policies. The results show that there exist complex relations between economic growth and environmental pollution, which are not necessarily in accordance with Environmental Kuznets Curve (EKC) that can be changed by government policies.To illustrate the role of the government's policy on environmental management further, emphatically analyses "Lanzhou model" which indicates that if the government takes effective and sustainable measures in the condition of fund guarantee. By using grid management pattern, Lanzhou city got out of China's top 10 most-polluted cities, which was known as the "Lanzhou model", has provided a successful experience and typical demonstration for the pollution control. Grid management model has been successfully applied to the urban environment governance and effectively solve many problems, such as the administration of overlapping responsibilities, confusion of supervision and management, inefficiency and so on. In the perspective of economics, combined with "Lanzhou model", the paper analyzes the inner mechanism of the grid management pattern in detail. By discussing it in the aspects of scarce resources, property rights, transaction costs and information asymmetric, the results show that in the provision of public goods and public services, Grid management mode make the diversification of urban governance, thus maximum to prevent the occurrence of the phenomenon of "government failure", and strict regulatory system will incentive and constraint the behavior of the governance body, which increases the cost of government opportunism behavior and reduces the friction cost of the operation. At last the main interest subjects reach Pareto optimality.On the basis of fully understanding the inner relationship between economic growth and environmental quality, if the government adjust measures to local conditions, adopt effective policy and carry on system innovation, the environmental improvement can be realized gradually.