Study On Internalization Of Environmental Cost And Its Causes In Electric Power Enterprises

With the increasing number of environmental pollution issues and people’s increasing awareness of environmental protection,ecological and environmental issues have received more and more attention.Resource and environment issues have become the key issues for sustainable economic development.A green and sustainable business development model is an inevitable choice for achieving green and sustainable development of the national economy.As a pillar industry of the national economy,the green and low-carbon development of the power industry is an inherent requirement for achieving sustainable economic and social development in China.However,while power companies provide energy supply for economic development,they also face green development problems with large pollutant emissions.After the company’s production has an impact on the environment,but the corresponding environmental costs are not included in the product costs,it is easy to produce external environmental diseconomy,which is not conducive to the sustainable development of the economy and society.Existing studies on environmental costs focus more on the connotation and measurement of environmental costs,and there are relati vely few literatures on the causes of environmental cost internalization.However,it is an important prerequisite to improve the internalization of environmental costs,so it is of great theoretical and practical significance to study the internalization and drivers of environmental costs in power companies.This paper studies the internalization of environmental costs of electric power companies,and takes electric power companies as the research object to analyze the current status and motivation of internalization of environmental costs.Based on reading and sorting out a large amount of literature,this article first sorts out the three ways of internalizing environmental costs:levying environmental protection taxes or granting subsidies,property rights transactions,and environmental labeling systems.Then analyzes the current situation of environmental cost internalization of Chinese electric power enterprises from three approaches of internalization of environmental costs.Based on the ideas of system dynamics,this paper analyzes the influence mechanism of environmental cost internalization,and explores the influencing factors of environmental cost internalization of electric power enterprises.Secondly,through the report data,identify the environmental costs of internalization of power companies,and consider internal and external factors that affect the internalization of environmental costs of power companies.This article builds a multiple linear regression model for empirical research.The empirical research results show that:at the level of external supervision,government subsidies,media attention and the internalization of environmental costs of power companies are significantly positively correlated.At the level of internal governance,the proportion of independent directors is significantly positively related to the internalization of environmental costs of power companies.Finally,this paper combined with the current situation of internalization of environmental costs of electric power companies and empirical research results,put forward suggestions for improving internalization of environmental costs of electric power companies.