Analysis On Strategic Environment Policy Based On Consumption-generated Pollution

The paper aims to analysis strategic environment policy based on consumption-generated pollution. From the prospects of consumption-generated pollution and differentiated competition, the text designs a vertical differentiated environment model based on the standard model of vertical differentiated products. By the model the text firstly analysis the conditions that Minimum Environment Standard set by developed countries form green barriers to developing countries and their effects on exports of the developing countries; in addition, the text studies the effects of unilateral subsidies to enterprises on environmental R&D by developing and developed countries through the model. Moreover, the text studies the effects on exports of our countries of green barriers by studying the effects of "Positive List System" carried out by Japan last year on exports of farm commodities of our country. In the end, the paper presents some suggestions on how to break green barriers for China.The result shows that under Bertrand competition the MES established by developed country makes the long-term profit of the producers producing consumption-generated pollution products in developing country zero and a new MES will prevent the exports of developing country in some time. The study about subsidy policies carried out by government shows: developing country and developed country respectively provides subsidy to its enterprise will promote the environment index of the products in both country, but the former will increase the environment R&D profit of producers in developing country while reduce the environment R&D profit of producers in developed country, and the latter will increase the environment R&D profit of producers in both countries.