Public Finance Optimization Research Of China Under The Clean Development Objective

In pursuit of the target of rapid economic growth, the traditional industrial civilization brought rapid economic development and people's material living standard has improved, but it has consumed the global natural resource by the astonishing speed, emitted large quantities of waste. The human relationship with nature is deteriorating, and human survival and development is seriously threatened. China is a large developing country, which is also facing the dilemma of economic development and the environmental protection. With establishment for more than 60 years, new China has made great strides in the economic development and great progress in its comprehensive national strength. Especially, since the reform of opening up, China has sustained the rapid economic growth, and the current economic scale has leaped and ranks the second in the world. However, China has paid a heavy environmental price for the tremendous achievements. Currently, the environmental pollution is worsening. Major rivers, lakes and urban air have suffered from various degrees of pollution, industrial solid waste and urban garbage are increasing in quantity, and soil pollution is endangering human health. Ecological damage is prominent, natural resource is in shortage, soil erosion, land desertification and wetlands destruction is worsening, natural grassland is degrading and biodiversity has plummeted. According to the estimates by experts, the economic loss caused by environmental pollution has reached above 10%of GDP in the same year. And this creates a huge threat to our fragile environmental capacity. Under such circumstances, how to make use of the resources reasonably and effectively, to reduce resource consumption and pollution emissions, and to take a clean development road which coordinates economy and environment, has become an important issue which the process of industrialization and modernization in our country has to confront.This paper makes full use of the methods of cross-disciplinary research integration of normative analysis and empirical analysis, qualitative analysis and quantitative analysis, horizontal comparison and vertical comparison that is based on the national conditions in China and uses the advanced experience in foreign countries for reference. Starting from China's current environmental problems in the course of economic growth, the paper analyzes the causes of environmental problems in China, and proposes that China must take the road of the clean development which coordinates economic development and environmental protection. On basis of the comprehensive discussion about the relationship between clean development and public finance, the paper focuses on the study how to design and adjust the financial revenue policies such as environmental tax, pollution discharge fees, and the related fiscal expenditure policies such as financial budgetary expenditure, financial investment in environmental governance, financial technology expenditure, government transfer payments, and government green procurement, which help to promote the clean development. So this paper puts forward the public finance framework for environment governance, and explores the supervision and coordination issues on the different environmental policies.The full text divides into two parts:introduction and the body. The body of the paper includes 6 chapters.Chapter 1 is the section of the theoretical summery and assessment of relevant researches. It mainly combs and reviews the related domestic and foreign economists'research literatures on economic growth and environmental protection, economic growth and fiscal policy and fiscal policy and environmental issues. And it has targeted a brief assessment.Chapter 2 focuses on the relationship between public finance and clean development, and clarifies the theoretical basis on which public finance intervenes in the clean development. As the starting point, it introduces the relationship between China's economic development and environmental pressure, analyzes our country's environmental quality status with the specific statistical data, and sums up the causes of our environmental problems in the aspect from market failures. Then it describes and compares the classification means and administration measures of environmental policy options, penetrates into the pros and cons between Coase means and Pigou means, and clarifies the important role of fiscal policy to promote the clean development.Chapter 3 specifically studies the public revenue policies aimed to effectively promote the clean development, and reviews in detail from two aspects of green taxes and pollution discharge fees. By introducing the meaning and function of green taxes and the international comparison of green tax policies, it mainly analyzes the performance of China's green taxes and empirically tests the "double dividends" effects of our environmental taxes. Based on this, it clearly declares the further optimization design of our country's green taxes. And at the same time, it puts forward the related suggestions on how to reform the policies of pollution discharge fees, and how to design the preferential policies to protect the environment and conserve resources in China.Chapter 4 specifically studies the fiscal expenditure policies to promote the clean development. After the comparative study of the international environmental investment policies in typical nations, and the analysis of environmental investment to economic growth and environmental effects, it proposes the specific measures and suggestions on how to optimize such issues as financial budgetary expenditure, financial investment in environmental governance, financial technology expenditure, government transfer payments, and government green procurement in China.Chapter 5 focuses on the innovation in our financial policies aiming at clean development. It constructs the environmental finance framework, explores the mechanism of the green financial supervision to promote the clean development and the coordination mechanism of different environmental policies.Chapter 6 summarizes the main research conclusions and makes a general outlook for the effects of policy adjustments.There are some principal innovation points in this thesis. (1)On basis of the comparison of the domestic and international environmental tax policies, it systematically analyzes China's green tax policy framework to promote the clean development. And the paper empirically tests the applicability for "double dividend" of environmental taxes in China. That is to say specifically, firstly in order to test the first tier of the dividend of the environmental tax to improve the environmental quality, it makes empirical testing of quasi-environmental tax associated with the pollutant emissions. Secondly in order to test the second tier of the dividend of the environmental tax to improve reemployment bonus, it makes empirical testing respectively of the relevance of quasi-environmental tax associated with economic growth and economic growth associated with the employment growth. (2) Environmental protection investment is for the purpose of environmental protection. It includes the economic and social benefits, in addition to the environmental benefits. To analyze the impacts of environmental protection investment on clean development, at first it theoretically describes the economic role of environmental investment mechanism, and establishes the benefit model of environmental protection investment. Then through the correlation analysis and cointegration analysis of the environmental protection investment and economic growth, it makes an empirical relevance test of environmental protection investment's role in China's real economic growth. (3) In the same research field in China, the paper designs on the first the framework of environmental financial system, which is composed of environmental financial budget, environmental protection investment and financing, environmental financial transfer payments, and funding regulation for environmental protection. In the same time, it puts up with fiscal policy thinking of the financial investment policies in environmental protection to control environmental pollution and tax policies on resource and environment to prevent environmental pollution.The paper carries on the research on the public finance optimization in China under the clean development objective. It is the research expanding and deepening based on a number of previous study achievements. Because of the time, my limited ability, as well as information, data, information collection and other subjective and objective conditional restrictions, this thesis needs to be further in-depth study and discussion in such aspects as the selection of economic indicators, the acquisition of first-hand material, the empirical analysis for practical problems and so on.