A Study On Environment Policy Instrument Technology Effect Comparison Under Uncertainty

Environment policy instruments have become a research focus gradually since Pigou suggested the use of system design to solve environment external. Many researches show that different kinds of environment policy instruments have significantly different effects on technology progress in speed and direction. How to induce the invention, diffusion and innovation of green technology through environment policy instruments are the key point to lighten or abatement pollution .Thus, it is an effective choice to consider the effect of technological progress when choosing environment policy instruments.When comparing technological effects of environment policy, this paper uses two aspects of technological effect, technological innovation effect and technological diffusion effect, as well as introducing uncertainty of cost to make the issue studied more reasonable, thereby, government could be provided theoretic basis when making related policies.Analysis result indicates that, when cost is easily controlled; tax policy is optimal no matter in promoting firms to adopt new abatement technology or in encouraging firms making technological innovation. Right transaction plays a less important role in promoting technological diffusion than subsidy policy, while it plays a more important role than technique standards. However, right transaction policy is better than all the other policies expect tax policy in encouraging companies to make technological innovations. In the case uncertainty of cost degree is fairly high, economic measures will inevitably cause the slow down of technology diffusion and the reduction of enterprises R&D investment, whether technological effect of tax policy is better than technique standards lays on measuring, controlling and difficulty degree of execution. This shows that in the real world, only when abidance cost advantages of environment policy instruments could sufficiently make up the disadvantages caused by other difficulties such as inspection and measurement, can the superiority of environment policy instrument which is based on market be assured. In the following analysis, this paper illustrates energy saving technologies of foreign country, inspects the effects of environment policy instruments on company technological innovation considering uncertainty of cost, and verifies the conclusions drew in this paper in some degree.