A Theoretical and Empirical Analysis of China's Industrial Waste Water Pollution

With the rapid urbanization and industrial growth,a large amount of industrial waste water has been dumped into rivers without appropriate disposal,thus causing serious pollution to rivers.Taxation,control and emissions trading can not curb the deteriorating situation of water pollution in China.In order to analyze a real logic of water pollution,the paper considers that the game among governments,enterprise and the public in political market lead to such a dilemma.We make an empirical analysis about competition model by using China's provincial dynamic panel data from 1997 to 2008 and the method of GMM on the environmental pollution.Eventually,we draw a conclusion that conspiracy between local government and enterprises is an important reason for the industrial waste water pollution.