Research On Economic "Growth Drag" Caused By Environmental Pollution In The Bohai Coastal Areas

With the development of China’s economy, it occur the problems about the growth of wastewater, waste gas and solid waste emissions, which have seriously affected the healthy development of the economy. Therefore, the harmonious development of environment and economy as well as the influence of environmental pollution on the economic growth has become the hot issues.This paper uses the C-D production function model and CES production function model to derive "growth drag" calculation formulas; then calculates the "growth drag" value from 1995 to 2013 in the Bohai coastal areas and founds the "growth drag" value is 0.009740; Finally, through the game analysis of environmental protectionstakeholders as well as the economic analysis of emissions charges and emissions trading, gets the relevant recommendations of sustainable development in the Bohai coastal areas and the whole China.Firstly, this paper uses Romer (2001) "growth drag" method on the basis of relevant articles about resource constraint on economic growth, separately constructs the C-D production function model and CES production function model. Then setstwo scenarios of "worse environmental pollution situation" and "ease environmental conditions"combined with the actual situation of environmentalvariables, to derive "growth drag" calculation formulas under two production function models.The time range is from 1995 to 2013, and the space range is the Bohai coastal areas. This paper uses Eviews7.0 software to get parameter estimated value of production function equation, and foundsthe estimated values of C-D production function modelcompletely match the economic condition,but the estimated values of CES production function model does not completely match the economic condition, it may exist the multiple liner problem. So this paper selects the C-D production function model to calculate the "growth drag" value, and founds the "growth drag". value is 0.009740. The result shows that the "growth drag" value of environmental pollutants in the Bohai coastal areas is 0.009740, namely the annual economic growth rate will decline 0.9740 percent because of the emissions of environmental pollutants.Finally, this paper bases on the "growth drag" model and the empirical analysis, through the game analysis of the environmental protection stakeholders as well as the economic analysis of emissions charges and emissions trading, to get the relevant recommendations of sustainable development in the Bohai coastal areas and the whole China from two aspects, namely the industrial restructuring and environmental governance.