Dynamics of Sewage Charge Policies, Environmental Protection Industry and Polluting Enterprises—A Case Study in China

Qingsong Wang, Xueliang Yuan, Jian Zuo, Ruimin Mu, Lixin Zhou and Mingxia Sun
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Qingsong Wang: School of Energy and Power Engineering, Shandong University, 17923 Jingshi Road, Jinan 250061, China
Xueliang Yuan: School of Energy and Power Engineering, Shandong University, 17923 Jingshi Road, Jinan 250061, China
Jian Zuo: School of Natural and Built Environments, University of South Australia, Adelaide 5000, Australia
Ruimin Mu: School of Municipal and Environmental Engineering, Shandong Jianzhu University, Fengming Road, Lingang Development Zone, Jinan 250100, China
Lixin Zhou: School of Economic and Management, Northwest University, Xi'an 710069, China
Mingxia Sun: Shandong Academy of Macroeconomic Research, Jinan 250014, China

Sustainability, 2014, vol. 6, issue 8, 1-19

Abstract: The game model of sewage charges, based on incremental mode, was developed. Four modes of high/low sewage charge standards were utilized to analyze the relationship between control strategy on sewage discharge and the development of environmental protection industry. Results showed that the selection of control strategy was heavily dependent on the level of sewage charges. An empirical study was carried out to investigate the environmental protection industry in 31 regions in China in 2010. It was revealed that the sewage charge standards, formulated by the local governments and the development of environmental protection industry, varied significantly in different regions. The optimal level of environmental quality and social welfare, as a whole, was not achieved in China. It is proposed that different regions should adopt different sewage charges standards based on their economic development level and the current environmental quality. Similarly, the scientific and technological innovation of environmental protection industry should be further strengthened.

Keywords: game model; environmental policy; environmental protection industry, polluting enterprise; sustainable development (search for similar items in EconPapers)
JEL-codes: O13 Q Q0 Q2 Q3 Q5 Q56 (search for similar items in EconPapers)
Date: 2014
References: View references in EconPapers View complete reference list from CitEc
Citations: View citations in EconPapers (5)

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