Promotion Of Tax Policy Studies, Development Of Circular Economy

Circular economy is an economic model operating in the way of material recycling in natural ecological system and it aims to guide the economic activities in human society with ecological laws. Circular economy is characterized by resource conservation, recycling and reuse and is also termed resource recycling economy. The idea of Circular economy germinated in 1960's when Kenneth E. Boulding, an American economist, created "Spaceship Theory". In 1980's the strategic thought of sustainable development and cleaner production gradually took shape in the international society. After 1990's, as environmental revolution and sustainable development strategy developed into a trend in the world, the strategic thought of recycling economy began to evolve into an integration of cleaner production, comprehensive resource utilization, eco-design and sustainable consumption and is becoming the main trend of thought in the field of environment and development. The evolvement from sustainable development to Circular economy reflects that human society persistently pursue the harmony between its development and the nature.In Circular economy three principles are observed, i.e. reduce, reuse and recycle, which constitutes the fundamental thought of Circular economy. The emergency of Circular economy is an innovation made when human beings thought over the traditional development model that was hard to carry on and is the result of continuous sublimation of human beings' understanding about the relationship between human and the nature. In Circular economy the entire economic system is considered to be a special form and part of the ecosystem. From this point of view, it has become the fundamental target of the research and development of Circular economy to improve the economy system to make it compatible with the ecosphere and ultimately enable the longstanding survival of human beings. Circular economy aims at finding a potential innovative way to match the economy system with the "normal" operation of the ecosphere and ecosystem based on the knowledge of ecosystem and ecosphere, especially on the research of industry metabolism, and ultimately building an ideal economic-ecosystem.At present, the economic development pattern adopted in many nations and regions still mainly relies on end-of-pipe control. The theoretical basis of the pattern was, in the earlier stage, mainly Pigou's theory of internalizing external effects, which suggested the achievement of pollution discharge reduction by imposing Pigou Tax, and in the later stage, mainly the Coase Theorem, which stated that environmental pollution problems could be solved through negation as long as the property right was clear and Pareto optimization could be achieved. These theories laid a foundation for the earlier environmental economists to conduct theoretical analysis, that is, to bring forward the polluters pay principle. This principle has once played a historical role in preventing from the rapid spreading of environmental pollution. However, it is very difficult to fundamentally stop environment deterioration and resource exhaustion. Driven by the current situations that the various usable resources we rely on for living tend to become exhausted from being scarce, sustainable development and Circular economy have become an orientation towards development and an important decision making factor to be considered by the government in formulating policies.In the background of this development concept, in recent years some issues in aspects of sustainable development and Circular economy have attracted the common attention of some economists, in particular, public financialists, materialists and environmentalists. Importance has been attached to the way for economic instrument to play a role in sustainable development. Among the economic instrument taxation has become an attractive one in the achievement of sustainable development and Circular economy. Therefore, this paper is titled a study on Tax Policies Promoting the Development of Circular economy and aims at studying the possibility of promoting the development of Circular economy by relying on the economic instrument so called ecological tax. This paper tries to present a systematic study on the taxation policies in the development of Circular economy, on the basis of summarization of the ecological taxation theories developed in the west and reevaluation of the traditional taxation theories of China and under the guidance of sustainable development theory. Focus is put on improvement of the taxation system of China with the concept of Circular economy and on the ecological taxation policies with significant impact on the development of cleaner production and ecological industrial parks, i.e. stressing ecological taxation in illustration of the role of taxation in the development of Circular economy and bringing forward some recommendations on the establishment of the taxation system in Circular economy of China.The paper consists of six chapters. The first two chapters of this paper mainly center on the general theoretic issues concerning Circular economy and international practices in Circular economy and on the analysis and discussion about the situation in China. In the last four chapters, a systematic theory study on Circular economy promotion taxation policies are presented, taking the reality of China into consideration. The basic logic of the discussion is to study the role played by taxation policies in encouraging energy and resource conservation, facilitating cleaner production and developing ecological industrial parks, under the guidance of sustainable development theory and scientific development concept and on the basis of analysis and comparison of the thought of external economy, the theory of Pigou Tax and Coase Theorem, in an effort to provide a theoretic framework and policy recommendations for the design of the tax polices concerning Circular economydevelopment of China.