Is The Planning Goal Of Environmental Protection Industry Reasonable?

With the rapid economic development, resources consumption, environmental pollution and other issues have become increasingly prominent. And vigorously develop the environmental protection industry is the main way to solve such a way. With the adjustment of industrial structure in the world at the same time, the environmental protection industry has become a new growth point. Become a pillar industry in many countries, and promote economic development. Therefore, our country defied environmental protection industry as a strategic emerging industries for vigorous support Since1992our country held its first working meeting, an environmental was created for developing environmental protection industry since environmental standards, environmental regulations enacted, institutional mechanisms improved. Meanwhile, taxes, subsidies, finance, export and other industrial policies on environmental protection industry support. Although environmental protection industry has been rapidly develop near two decades. But scholars generally believe that, there are still relevant laws are inadequate; government supervision needs to be strengthened; low degree of marketization; irrational industrial structure; technology and R&D capability is relatively weak; investment and financing platform is not mature enough and other issues in China’s environmental protection industry.Environmental protection industry for having externalities and public article attribute, likely to cause market failure, so the development of environmental protection industry has a strong government dependence. In recent years, in order to adjust the industrial structure, the extensive mode of production, to achieve scientific, green, sustainable development and environmental protection industry into development planning. Appropriate environmental protection industry development plan, not only has been researched and implemented in the central, but also local. The plan is easy to see from the government for selecting technologies focus on the development of environmental, for large-scale, large enterprises preferences might interfere with the development of the market. This paper proceeds from this point, to judge the rationality of planning on firm size, and the number target of firms. From considerations of availability and accuracy of the data in this paper, selected listed companies in China’s environmental protection industry class annual data in2013. Selected48environmental protection Listed Companies comply with conditions,27environmental class production activities as a measure units. Using DEA analysis, in proper order to use the net fixed assets, number of employees, total operating costs as investment items, operating income and gross profit as output items and raw materials and depreciation as the total capital investment, energy, transport and service costs classified as manufacturing costs investment, bring environmental protection sales revenue and gross profit as a measure of output items. Get either scale efficiency, technical efficiency, or R&D investment, large-scale environmental companies are not dominant. Efficiency between environmental protection enterprises have significant differences. And this difference is reflected in one hand, management and research and development capabilities, and the other hand reflected in the different industries. Environmental listed companies will choose the direction of development in accordance with their circumstances, do not need the government’s guidelines. Meanwhile some of the behavior of the government, such as local protection, Supporting large and limiting small, unstable environmental policy issues will hinder the healthy development of enterprises. At the same time, planning for large-scale enterprises also set a excessive number. And after Zipf law test it can be obtained that from the size and number of enterprises, the environmental protection industry has a good environment of competition, and there are even a little more large enterprises.The requirements of size and the number of business did not been mentioned in country’s industrial plan, but appeared in the local industrial plan. And in the process of policy-making, as opposed to promoting the healthy development of the environmental protection industry, tax revenue, local economic development, local competitiveness and advancement are main motivations for government action. The horizontal comparison of firm size and simple deduction, and environmental protection industries such as high-tech industry has the "learning by doing" ability to catch up with the leader.This is the basis for government to develop a higher goal. But blindly supporting the large enterprises, clustering development, developing key enterprises, key technology, while encourage enterprises to enter and offering preferential policies to enterprises, also cause the possibility of being facing further overcapacity situation if simply pursuing the value. And while these policies may be some time promoting economic growth. But as companies have been expanding, if environmentally friendly products market development has not kept pace, corporate funds may be out of the environmental protection industry, is not conducive to the overall design of the national industrial planning. Iron and steel, automobiles, photovoltaic, and other industries have faced these problems. Therefore whether the development plan is reasonable or not have a direct impact on the development of environmental protection industry.Therefore, this paper believes that, when formulating environmental protection industry, the government should make careful planning to set goals, and prevent the crash of large but not strong companies with targets of tasks done, which ultimately leads to unfavorable situation of excessive investment and the distortion of resource allocation. This thesis also suggested that, while in the promotion of industrial development, the government should start from increasing the flexibility of policy, expanding market capacity, strengthening the construction of the scientific research and innovation capacity, paying attention to SME development and other aspects in order to formatting a more favorable market environment. Meanwhile, government does not have the capacity or motivation to judge market’s prospect, choose technology and rational resource allocation. Therefore they should give a series of choice of enterprise scale, technology application, industry entry to enterprises to decide, then gradually replace government from management-oriented to service-oriented.