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An Economy Analysis on the Constraint of the SMEs’ Pollution Managementt

Author: HeZuo
Tutor: HeDaAn
School: Zhejiang Technology and Business University
Course: Industrial Economics
Keywords: SMEs (small and medium-sized enterprises) pollution management negative externality market power scale merit
CLC: X322
Type: Master's thesis
Year: 2007
Downloads: 138
Quote: 3
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While SMEs contribute a lot to our country’s economic development, it is more difficult to manage the pollution problem of SMEs than big enterprises due to SMEs’ numerousness and great capacity of pollution material they release. SMEs have been the main and difficult point of our country’s pollution management problem.This article tries to analyze the reasons of the SMEs’ severe pollution and difficulty of management from the view of the SMEs’ characteristics. Firstly it discusses the relation between the market power and great negative externality of the SMES. Secondly it analyzes the efficiency of pollution management in the SMEs. Thirdly it analyzes and concludes the reasons of failure of the environmental economic means in the pollution management of SMEs. Through the analysis, this article has the viewpoints that:1. The weak market power makes that SMEs can’t transfer out the management cost and this results in the great negative externality of SMEs. Meanwhile the lack of efficiency in the pollution management results in SMEs’ great stimulus of releasing the polluting material directly to the environment.2. The great negative externality of SMEs, high cost of pollution management and the wide spread of SME result in the failure of the environmental economic means, this make the SMEs pollution control much more difficult.On the basis of the above analysis, this article then discusses how to solve the severe pollution problem of SMEs and thinks that building indrustrial parks and developing circularly economic contribute to slove the SMEs’ pollution problems, although these methods have premises and limit.The police suggestion involved in the article is made according to the above viewpoints. This article thinks that at present it’s difficult to solve completely the failure of the envionmental economic methods in the SMEs’ pollution management within short period, so it’s necessary to enforce the administration intervention to prevent the severe harm of the SMEs to the environment. As to the policy, government should create conditions for SMEs to develop specialized pollution management and establish circularly economic. Meanwhile our government also should explore to use the market mechanism to solve SMEs’ pollution problem in order to use price mechanism to better configuration of environment resource.

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CLC: > Environmental science, safety science > Administration of Environmental Protection > Environmental planning and environmental management > Sectoral environmental planning and management
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