Economic Policies of Water Pollution Control in the Taihu Lake Basin, China

Abstract

In order to control water pollution of Tai Lake Basin, the Chinese government has implemented a series of economic, technological, and industrial policies during the past decades. This study aims to present the achievements and challenges of water pollution control in the Tai Lake Basin, focusing on the economic policies, such as pollution levy, green credit, ecological compensation, compensated use of pollution discharge rights and pollution discharge rights trading, and environmental pollution liability insurance. The results of this study indicate that China has made great progress of policy design and implementation, especially in Tai Lake Basin. These policies have prevented the deterioration of water quality in Tai Lake. At the same time, further improvements of their implementation are still needed in the future.