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.
Highlights
China has achieved a rapid economic growth during the last few decades
The pollution enterprises are more likely to pay sewage charges rather than pollution treatment, unless a higher sewage charge policy in place together with a reduction of the treatment cost of environmental protection industry. These findings provide a useful reference for enacting environmental policy and environmental protection industry development plan
The game model result of provincial environmental protection industry in China is described as Equation (14), L2 = 1.62t 3 28.35t 2 (4.9)
Summary
The environmental issues associated with urbanization and industrialization have become even more crucial due to the coal-dominated energy mix and low energy efficiency in China [1,2,3,4]. It presents a significant challenge for the Chinese government to maintain sustained economic growth without the cost of the environment, which is reflected in Five-Year Strategic Plans released by the Chinese. The official definition of the environmental protection industry is the production and business activities for the purpose of preventing environmental pollution and improving environmental quality. Bressers argued that high sewage charges system played an important role in fostering pollutant-reduction behavior [17]
Sign-in/Register to view highlights & summary Sign-in/Register to access full text options 
Free) 
Talk to us
Join us for a 30 min session where you can share your feedback and ask us any queries you have
Schedule a call
