Economic Benefit Evaluation And Policy Recommendation To Envriomental Project Using Japanese Assistance (Yen Loan) In Shenyang

Chinese government negotiated with Japanese government on Japanese Assistance (Yen Loan) in 1979, and singed the agreement about the first batch Yen Loans. Chinese government had used four batches Yen Loan and signed 239 agreements. The aggregation amount was to 2260.87 billion yen from 1980 to 1998. The Yen loan was used to the important industries such as communication and environmental protection. Shenyang city is one of the most important industries base in China. The pollution of smoke form burning coal is serious. The central government and Liaoning provincial government pay attention to the problem of pollution. The project of air pollution control in Shenyang city was put on the list of Yen Loan in 1995.Japanese assistance loan produced positive effects in improvement of environment and pollution control, and advanced the sustainable development in Shenyang city. The paper from economic and environmental evaluation point of view evaluates four projects using Yen Loan, analysis price and foreign exchange rate effect on projects, arrive at the conclusion. The contribution of Yen Loan to Shenyang city's environment control should be evaluated. The conclusion of evaluation is vital to the city's environment control and using foreign capital effectively in Shenyang city.