The Economic Analysis Of Environmental Pollution And Its Institutional Arrangements

At present our country is in a period of quickening the tempo of reforming the socialist market economic system and developing economy. Environmental pollution, as a key factor which restricts the economic development in our country, has been concerned deeper and deeper into the hearts and minds of people. It will contribute not only to environmental protection but also play an important role in economic development for our country, if we can solve the problem of environmental pollution and promote the coordinated growth among resources, environment and economy. But to proceed from the actual situation, the degree of environmental pollution is becoming increasingly serious and the research at this aspect is relatively falling behind, which conditions the further development of the protection of environmental resources and economy greatly. Therefore, based on the prerequisite that economy is developing stably, quickly and healthily, the environmental economy scholars and every government are confronted with a weighty task of bettering the situation of environmental resources instead of worsening it.This paper "the economic analysis of environmental pollution and its institutional arrangements" concentrating on the research of the specified object, environmental pollution; applies economic analytical methods and probes into the institutional arrangements of harnessing the environmental pollution through the economic analysis of the environmental pollution by two economic theories: Pigou Tax and Coase theorem, so as to achieve a better solution between the environmental problems and economic development. It can furnish evidence for the right decision on environmental problems and contribute to quickening the economic development for our country.There are four chapters in this thesis. The first chapter is preface, made by two sections. In section one, the economic origin of the environmental pollution, namely externality, has been introduced. In section two, the causes of environmental pollution have been analyzed. It has mainly explained the "market failure" and "government failure" that result in the environmental pollution while analyzing the cause of the environmental pollution. The "market failure" is analyzed from five aspects: the limited senses of the environmental object, the communality of the environmental resources, the negative externality of the environmental pollution, the positive externality of the environmental protection and the scarcity and dissymmetry of the environmental information. The "government failure" is analyzed from two aspects: mainly from "the environmental policy failure" and "the environmental management failure".The second chapter is the theory of externality. It is made by two sections: the adduction, evolution of externality theory and three milestones of the developing process of externality theory. In section one its developmental process of externality history has been introduced. In section two there are three milestones of the developing process of externality theory: Alfred Marshal's"Exterior Economy", A. C. Pigou's Pigou Tax to Coase's "Coase theorem".The third chapter, the economic analysis of the environmental pollution, is the focal point of the the full text. There are three sections: the analysis of environmental pollution by Pigou's theorm, the analysis of environmental pollution by Coase's theorem and the comparison between Pigou means and Coase means. In section one, while applying the economic analysis to the environmental pollution with the Pigou theorem, the theoretical basis of imposing "Pigou Tax" has been introduced, putting forward the taxation of "Pigou Tax" under perfect and imperfect competition conditions, engaging in the effect analysis of "Pigou Tax", in the end discussing the optimum pollution model with the Pigou theorem. In section two, while applying the economic analysis to the environmental pollution with Coase Theorem, it mainly used Coase's first theorem for discussion, expounded and proved in detail how Coase Theorem solved...