Evaluating the Experimental Units of China’s Environmental Pollution Liability Insurance and Selecting the Priority Development Area and Industries Based on DEA
|School||Dongbei University of Finance|
|Keywords||Environmental Pollution Liability Insurance Data envelopment analysis pilot projects priority development area industry|
Environmental Pollution Liability Insurance is a business to a pollution incident on the third-party damage. China’s environmental pollution liability insurance has been a pilot since 2007 and achieved positive progress. Recently, Hu Jintao, general secretary of the Shenzhen Special Economic Zone in the 30th anniversary celebrations of the speech point that, transformation of economic development is economic and social development of China’s major strategic task. For the further implementation of this idea, environmental pollution liability insurance system was urgently needed across the country. Environmental pollution liability insurance pilot aims to explore the basic method of the environmental pollution liability insurance, establish the underlying database, and gradually worked environmental risk assessment system, corporate environmental risk management system, environmental pollution and damage assessment and compensation system, insurance system, monitoring system and liability risk-sharing system, etc. Therefore, the choice of the pilot is extremely important. At present, China is in a high incidence of environmental pollution accident period, there are severe pollution accidents in some local industrial enterprises. Taking comprehensive measures to strengthen the prevention of accidents and pollution disposal is currently an important task, and clearing the area of environmental pollution and industrial risk level is important. As China’s regional and industry for risk classification, we see environmental pollution and high-risk areas of regional development as a priority of environmental pollution liability insurance, focusing on priority areas for the industry to prevent pollution incidents, will effectively promote environmental pollution liability insurance. Most domestic and foreign scholars study environmental pollution liability insurance from environmental pollution liability insurance system, insurance model, laws and regulations, the insurance model and pilot study. Data envelopment analysis of multi-risk assessments used to be applied on efficiency analysis, this study innovatively applies it to Environmental Pollution Liability Insurance. We see environmental pollution indicators as risk indicators, the greater risk indicators of efficiency are, the higher the risk of environmental pollution. In the course of the study we find that, due to environmental pollution liability insurance is still in pilot, lacking the environmental pollution liability insurance data, only having the environmental pollution data, this paper only researches the development of environmental pollution liability insurance strategy. In this paper, we use the environmental pollution data for quantitative analysis based on the selectivity of the pilot evaluation of environmental pollution liability insurance and priority the development of regional and industry.Based on the above considerations, we use data envelopment analysis of multi-risk assessment approach to study the choice of rationality on environmental pollution liability insurance pilot and the development of regional and industry selection of priority. We select industrial wastewater, sulfur dioxide, industrial smoke and industrial dust, and solid waste five risk indicators to evaluate the risk of environmental pollution from 2001 to 2009 and China’s 31 provinces in China from 2006 to 2009 and 40 industries.The basic idea of this study is:Firstly, this paper explains the development of environmental pollution liability insurance, Introduces domestic and foreign environmental pollution and environmental pollution liability insurance. Secondly, we describe the basic theory and application of data envelopment analysis and multi-risk comprehensive assessment. Then we evaluate the pilot selection of China’s environmental pollution liability insurance, we obtain high and low-risk provinces in this part, and then compared it with the existing pilot provinces. At last, we discuss the environmental pollution liability insurance for our preferred regions and industries, conclude to the country of choice for environmental pollution liability insurance industry, provinces.Conclusions and recommendations of this study are:From view of the pilot provinces of environmental pollution liability insurance, there are Jiangsu, Hebei, Liaoning, Shanghai, Zhejiang, Guangdong and Fujian in the east; Hunan, Hubei, Shanxi and Henan in the center; Guangxi, Inner Mongolia, Chongqing, Yunnan and Sichuan in the west. Pilot focused on the risk level of one and two provinces, indicating that the pilot provinces focus on environmental pollution provinces. There are pilot provinces in eastern, central and western from one to four risk level, and also shows a more reasonable distribution of the pilot. The central government should gradually be fully integrated into the study of all provinces and selected provinces in the pilot enough city (county) and industry, accumulating more experience on the establishment of environmental pollution liability insurance system.Eastern and central priority is the development of regional environmental pollution, for the other provinces, may slow the implementation of environmental pollution liability insurance. This approach is conducive to progressive levels of environmental pollution liability insurance system, giving priority to environmental pollution affected provinces, resulting in the shortest possible period of time effective to achieve the environmental pollution liability insurance system for short-term goal. Depending on the province in which the mobile element rates for different levels of system take certain incentives, such as a series of measures to reduce business risk level is appropriate to reduce its environmental pollution liability insurance rates, etc., to encourage the development of the provinces in economy while minimizing emissions.Textile industry; paper and paper products industry; chemical materials and chemical products manufacturing; non-metallic mineral products industry; electricity, heat production and supply; ferrous metal smelting and rolling processing industry is the development of environmental pollution liability insurance industry preferred. Shandong, Jiangsu, Hebei, Henan, Zhejiang and Guangdong provinces, such as six high-risk industries to the six provinces in central production. It is wise to develop environmental pollution liability insurance in the six industries from the six provinces. Polluted areas in the country should focus on the polluting industries, it is recommended polluting industries compulsory environmental pollution liability insurance. As enterprises to purchase pollution liability insurance will increase the operating costs of enterprises, the Government should take measures to encourage polluting enterprises to improve their environmental conditions. Every business can be through strict pollution control production processes, thereby reducing product emission, the Government may update the equipment of the enterprise funds to provide subsidies.Environmental pollution liability insurance system should not be independent of the environmental protection measures. Environmental quality improvement is a systematic project, various measures taken by the Government at all levels. The implementation of these measures the effect of environmental pollution liability insurance system long-term goal of the city and county of great significance. First, through the comprehensive management of environmental pollution, tax incentives and other policies for environmental pollution liability insurance system to create favorable conditions for the implementation. Second, with the function of financial markets, carbon trading and other financial instruments to encourage enterprises to improve their sewage situation, so as to effectively prevent the high risk of environmental pollution. The third is from the environmental pollution liability insurance system itself to find a solution, such as setting reasonable deductible and preferential rates to encourage enterprises to increase the risk of environmental pollution prevention awareness and reduce pollutant emissions.