64
Y. Wang
ecological civilization system, we must first identify the reasons behind the failure
of a system or management model. In fact, natural ecosystems and their problems
are much more complex than we believe. They have multiple dimensions such as
time, space, structure, and function. Therefore, it is necessary for us to thoroughly
understand the laws of natural evolution and the corresponding management models,
so as to find a scientific way to build the system.
1. Integrity of natural ecosystems and diversity of institutional arrangements
A natural ecosystem demonstrates spatial integrity after long-term evolution. That
is, living organisms and their environment form a whole. Environmental problems
caused by social and economic activities of human beings have become local, regional
and then global problems. The most prominent ones in China are regional air pollution (smog) and river basin water pollution. However, an environmental problem may
affect multiple administrative divisions, making it difficult for the current administration system to solve such problems. From the perspective of structure, elements
of the environment (water, soil, air, etc.) are all interconnected, and these elements
are often under the jurisdiction of different authorities, causing a lack of integrity
and coordination in environment-related issues. From the perspective of functions,
an element of the environment often has multiple functions. For example, water
is not only fresh water resources, but can also be used for power generation and
provide various ecological services. To achieve the optimal allocation of different
functions of water at the river basin level, we need regulations to coordinate well
between different management institutions. However, under the current system, there
are various institutional obstacles to the comprehensive management of resources
and environment.
According to traditional economic theories, environmental problems are caused
by market failures resulting from externalities, and policy failures may aggravate
environmental problems caused by market failures. In order to give full play to
the roles of the market, the government and the public, in addition to adopting
administrative orders and implementing environmental regulations, we can adopt the
following three methods to deal with market failures and policy failures: (i) we can
improve natural resources markets where competition for natural resources trigger
exclusion, clearly define the property rights of resources and the environment (such
as water resources and forest resources) and eliminate market distortions caused by
inappropriate policies such as unreasonable government subsidies; (ii) we can create
new markets for energy-saving and pollution/emission rights trading and make good
use of economic incentives (such as environmental taxation); and (iii) we should not
use any market-based approach to tackle environmental problems relating to natural
assets which are public goods and environmental resources or ecological services
that are difficult to monetize, and it is necessary to improve information quality and
governance structure and encourage stakeholders and the public to participate in
collective actions based on long-term balanced interests and consensus.
Therefore, in addition to ensuring ecological integrity, we need to make corresponding institutional arrangements for different types of environmental problems.
Y. Wang
ecological civilization system, we must first identify the reasons behind the failure
of a system or management model. In fact, natural ecosystems and their problems
are much more complex than we believe. They have multiple dimensions such as
time, space, structure, and function. Therefore, it is necessary for us to thoroughly
understand the laws of natural evolution and the corresponding management models,
so as to find a scientific way to build the system.
1. Integrity of natural ecosystems and diversity of institutional arrangements
A natural ecosystem demonstrates spatial integrity after long-term evolution. That
is, living organisms and their environment form a whole. Environmental problems
caused by social and economic activities of human beings have become local, regional
and then global problems. The most prominent ones in China are regional air pollution (smog) and river basin water pollution. However, an environmental problem may
affect multiple administrative divisions, making it difficult for the current administration system to solve such problems. From the perspective of structure, elements
of the environment (water, soil, air, etc.) are all interconnected, and these elements
are often under the jurisdiction of different authorities, causing a lack of integrity
and coordination in environment-related issues. From the perspective of functions,
an element of the environment often has multiple functions. For example, water
is not only fresh water resources, but can also be used for power generation and
provide various ecological services. To achieve the optimal allocation of different
functions of water at the river basin level, we need regulations to coordinate well
between different management institutions. However, under the current system, there
are various institutional obstacles to the comprehensive management of resources
and environment.
According to traditional economic theories, environmental problems are caused
by market failures resulting from externalities, and policy failures may aggravate
environmental problems caused by market failures. In order to give full play to
the roles of the market, the government and the public, in addition to adopting
administrative orders and implementing environmental regulations, we can adopt the
following three methods to deal with market failures and policy failures: (i) we can
improve natural resources markets where competition for natural resources trigger
exclusion, clearly define the property rights of resources and the environment (such
as water resources and forest resources) and eliminate market distortions caused by
inappropriate policies such as unreasonable government subsidies; (ii) we can create
new markets for energy-saving and pollution/emission rights trading and make good
use of economic incentives (such as environmental taxation); and (iii) we should not
use any market-based approach to tackle environmental problems relating to natural
assets which are public goods and environmental resources or ecological services
that are difficult to monetize, and it is necessary to improve information quality and
governance structure and encourage stakeholders and the public to participate in
collective actions based on long-term balanced interests and consensus.
Therefore, in addition to ensuring ecological integrity, we need to make corresponding institutional arrangements for different types of environmental problems.