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Research on Control and Incentive of China’s Export Trade in Environmental Safety Perspective

Author: YuMengZuo
Tutor: YuJinKai
School: Ocean University of China
Course: International Trade
Keywords: Environmental safety Trade control Trade incentive
CLC: F224
Type: Master's thesis
Year: 2010
Downloads: 72
Quote: 0
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Abstract


China is one of the most important textile-exporting countries.While textile exporting has brought economic benefits to our country, it has also brought pollution problems.In order to solve the environmental problems caused by export, the government’s policy is more inclined to take environmental measures,such as the internalization of environmental costs.It is may well be a viable policy option to carry on trade controls and incentives.But most of researches are lack of the theory of mainstream economics.This article, based on environmental security perspective, analyses the government’s trade controls and incentives by establishing models, and works out the optimal solution for the government’s measures in turn, which provide the guidance and theoretical basis for the government.In this paper, motivation and operating mechanisms of China’s export trade controls and incentives are analyzed on the perspective of environmental safety, pointing out that the environmental impact caused by exports, coupled with the green trade barriers on China’s export trade which set by the developed countries,decides the options of government trade policy together. And then, this article designs the operating mechanisms of trade controls and incentives.On this basis, this paper use the model proposed by B.R.Copeland and M.S.Taylor, building the function of our country’s environmental security, establishing mathematical model of trade control and trade incentives under the result of two-stage repeated games of complete information between the textiles export companies and the government, and obtaining the optimal expression of China’s textile export trade controls and incentives.The optimal export tariff rate is proportional to the domestic and foreign spontaneous demand, and is inversely proportional to the absolute value of the marginal demand trends.Based on environmentally friendly production, the optimal technology incentive rates is inversely proportional to the domestic and foreign spontaneous demand for China’s textile products,and is proportional to the absolute value of the marginal demand trends and the level of environmentally friendly production techniques of domestic textile exports companies.Then, this paper establish autoregressive distributed lag model by using the time series data of textile export trade from 1990 to 2008, and estimate the figure of the expression of option trade control and incentive by using classical single-equation method, and finally get the number of option export tariff rate and export technology subsidies rate.According to the conclusion of model, this paper recommends the government to enforce some policies.According to the value of optimal tariff rate, it is recommended the government to control the scale of textile exports strictly, and to implement strict export standards, combined with the appropriate textile technical standards and industry policy;according to the value of optimal export technology subsidies rate, it suggests that the government should carry on the police of technology subsidies, ensure the implementation of the technology subsidies, promote the independent innovation, and help the enterprises in the absorption of imported technology.

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CLC: > Economic > Economic planning and management > Economic calculation, economic and mathematical methods > Economic and mathematical methods
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