This paper has studied how to optimize environmental protection investment. Firstly, studying how to forecast scale and structure of the environmental protection investment that support sustainable development. Secondly, studying the problem and the reason of environmental protection investment supply. Finally, studying how to meet the need of environmental protection investment and how to improve its efficiency and its benefit. The study base on three theory assumed:(I)As administer of environmental quality, government target is to keep such good environmental quality that can support sustainable development. (2) The social manufacture technical level won seriously alter in short term. (3) Individuals and manufactures would like to paying for environmental quality improving. This paper uses the welfare economic theory, environmental economic theory and public good theory. And the equilibria analysis method and Input-Output analysis method was also used. In this paper, Chongqing has been studied as a case.Result of the study:I .The environment vestment that can support sustainable development is optimized investment. Base on the theory assumed that government target is to keep such good environmental quality that can support sustainable development as a administer of environmental quality, we can forecast the optimized scale and structure of environmental protection investment through following model:(I). The coefficient of pollution discharge(I)Its matrix model is:F =(fiT)m<sup>n(2)F is the pollution discharge matrix.The complete pollution discharge matrix (LV? is:=?FB +J</sup>(3)I is identity matrix, A?ii is direct consume coefficient matrix, B?iJ is complete consume coefficient matrix. (2).The quantity ot pollution dlschafge Q。ï¼å£äºŒ"f+二 P·f(4) l。11。l Qw:Thequantltyotpollutlon dlschaå§e,G:G D P,t:The Industrydepartment's weightIn GDPï¼:The。ndustry pollution dlschmå«e coefficient ofindustrydepartment.P:Ihen()pulatlon.Iï¼›:且M pollution dlschaä¾£e coefficlentofthe resident (飞).The scale and structure ofenvlronmental protection Investment 33 kï¼Z。。。。,,。二A(。。 gï¼Ig爿 P Is the scale of environmental Protection Investment·Pg Is the cost of abating Pollution,,11。h ds匕.回Då±±e qU*mï¼ty Ot pOIï¼UllonåŠa***å·ï¼Ž This model can reflect how the change of IndustVstructure and economic developmentimpact environmental protection Investment. gccording to the model,the scale of Chongqing's environmental protection Investment Is>I.40hundred million yLlan,53.57 hundred million yuan,56.12 hundred million yuan,58.82hL:士,ed lllllllon yuan,60.49 hundred million yuan from year 2001 to year 2005.The total is280.*0hUMæ°d Inl】】]。,rl yU*n *仙S**明eåŠatd**d181.33 hU而fdml*On yU*n,SO*pollutï¼on abated nee。4747 htlndred mllï¼ion yuan,atmosphere pciå±±tlon abated need 5160åœåœZI*fLJ 1fill*)n yU*n 2.The emclencxs seriously dl地rent between centralized Investment and decentralizedï¼ï¼‚vestment.The centF。:lizedï¼ï¼‚vestment Is more efficient than decentralized Investment.So,weoughtto use centralized Investment model to lmprovethe scale effect. 3.Envlronlnent Investment's economic benefithas externalltles.Envlronnlent Investmentimproves envlronnlental quality,but environmental quality has externalltles,It makes lowco(。nolnlc benefit otellvlronmental protection Investment.It's an available method to improveenvironmental protection Investment economic benefit through eliminating tåœe externalltles.Thedemand and supply of environmental quality Is lmpersonallty existent.The supply curve ofCDVlloflffiCfltsl qU8llty Is ttVSIï¼dblC.BUt hC dCffisfld CUryC OfCflVltoflffiCfltsl qU8lltyï¼S tiff8V8llsblC,bC...
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