Analysis and Implementation of Economic Means of Environmental Protection in China

Since the reform and opening up, China has been adhering to the extensive economic growth model, which has led to serious environmental damage, energy depletion, global warming and environmental pollution and other environmental problems have been increasingly prominent. The root of environmental problems lies in external diseconomy. Environmental pollution has obvious negative external effects, as environmental resources are public goods, enterprises will not increase their own costs in using or consuming public goods, but the society has to bear the marginal cost in providing the goods, which will lead to the inconsistency between social cost and private cost, thus causing excessive damage to the domestic environment. In the past, our country mainly governs by administrative means, and the shortcomings such as high management cost and poor effect in the implementation process are increasingly obvious. Combined with the treatment process of environmental pollution in western countries, economic measures have a good effect on the external diseconomy of environmental problems. According to the current environmental problems and governance status in China, environmental governance means in urgent need of transformation. Based on the literature, this paper analyzes the current situation of environmental pollution in China and the mechanism of economic means in environmental protection, puts forward the means of environmental governance and protection from the economic level, and discusses the future direction of environmental governance.