A Study On The Policies Of Saving Energy And Reducing Pollutant Emission In Henan Province Of China

Energy, Resources and Environment (ERE) are the base for human beings to live and develop. Since Industrial Revolution, great input of resources has brought splendid physical civilization, and at the same time caused worldwide resource and environment problems. Now, China is standing on the stiff of carrying capacity of it's ERE, and is suffering from supply deficiency and low usage efficiency of energy and resources, and severe environmental pollution. Under the extensive pattern of economic growth, China's resources and environment will hardly sustain economic and social sustainable development. So, we must fully implement the Scientific Outlook on Development, and attach greater importance to saving energy and resources, protecting the environment. As a breakthrough point and main fulcrum, Saving Energy and Reducing Pollutants Emission (SERPE) is vital to solve resource and environment problems. Henan province is one of the districts which have serious resource and environmental problems and consume a great deal of energy and discharged mass pollutant emission. The total energy and resource consumption is high, usage efficiency is low, energy and resources problems are severe, economic and social sustaining development demand SERPE.There is great policy demand in SERPE In market economy, market is an important mechanism for energy-saving and decreasing pollutant emission. Because of externality and public goods, there is market failure on energy-saving and decreasing pollutant emission. People's unlimited desire will lead to excessive consumption of resources and environment, which will bring environmental disasters to modern people, and will do harm to our descendant. So, we will put forth saving energy and reducing emissions of pollutant to adjust market failure and realize sustainable green development.Now, most papers about SERPE focus on one policy instrument, ignoring policy combination research. Author believes that authority should take multiple measures to foster SERPE, and design an elementary policy framework which promotes SERPE. The framework involves industry policy, which is called the "CORE", tax policy and financing policy, called "TWO WINGS", law and administration policy, called "SAFEGUARD", science and technology policy, called "PIONEER". Every policy affects SERPE differently. Industry policy will guide the industry choice, boost market competition, upgrade industry technology, and locate industry efficiently. In SERPE policy system, industry policy is the core. Tax policy will change the cost-benefit, internalizing economy externality to restrain energy-wasting and pollutant discharging, and encourage energy-saving and reducing pollutant emission. Financing policy will supply capital for SERPE. Public expenditure mainly supports SERPE in public area, commercial banks will focus on SERPE in competitive area, especially help small and medium enterprises solve the problem which is hard to financing for SERPE. As accessory policies, tax and financing policies are important measures to lead economy resources to congregate in industries and items which are helpful to SERPE. We call tax and financing polices two wings of the policy system.Now, the policy system of Henan, which promotes SERPE, has some shortcomings as the following: attaching overfull importance to industry and less importance to serving industry, growth in heavy industry and resource raw industry overheating; Henan's green tax grade and scot are low, and involves narrow area; the capital of SERPE is deficient, structure of capital input is unreasonable, and so on. So we suggest: we should make restructuring industry the breakthrough point, curb the sectors that are high in energy consumption or are highly polluting, encourage high technology industry and environment protecting industry, upgrade industry structure; reform green taxation system, collect garbage tax; the structure of budgetary expenditures and government investment will be improved to put more emphasis on energy conservation and environmental protection and independent innovation; adjust and improve the credit structure to guide banks to increase credit support for small and medium-sized enterprises, energy conservation, environmental protection and independent innovation, control long- and medium-term loans and strictly limit loans to backward enterprises that consume high quantities of energy or are highly polluting and poorly performing enterprises in industries with excess production capacity.