Contract Mechanism of Water Environment Regulation for Small and Medium Sized Enterprises Based on Optimal Control Theory

The small and scattered enterprise pattern in the county economy has formed numerous sporadic pollution sources, hindering the centralized treatment of the water environment, increasing the cost and difficulty of treatment. How enterprises can make reasonable decisions on their water environment behavior based on the external environment and their own factors is of great significance for scientifically and effectively designing water environment regulation mechanisms. Based on optimal control theory, this study investigates the design of contractual mechanisms for water environmental regulation for small and medium-sized enterprises. The enterprise is regarded as an independent economic entity that can adopt optimal control strategies to maximize its own interests. Based on the participation of multiple subjects including the government, enterprises, and the public, an optimal control strategy model for enterprises under contractual water environmental regulation is constructed using optimal control theory, and a method for calculating the amount of unit pollutant penalties is derived. The water pollutant treatment cost data of a paper company is selected to conduct empirical numerical analysis on the model. The results show that the increase in the probability of government regulation and public participation, as well as the decrease in local government protection for enterprises, can achieve the same regulatory effect while reducing the number of administrative penalties per unit. Finally, the implementation process of contractual water environmental regulation for small and medium-sized enterprises is designed.

Determination of water environment standards based on water quality criteria in China:Limitations and feasibilities

There is a need to formulate water environment standards（WESs） from the current water quality criteria（WQC） in China.To this end,we briefly summarize typical mechanisms applied in several countries with longer histories of developing WESs,and three limitations to formulating WESs in China were identified.After analyzing the feasibility factors including economic development,scientific support capability and environmental policies,we realized that China is still not ready for a complete change from its current nation-wide unified WES system to a local-standard-based system.Thus,we proposed a framework for transformation from WQC to WESs in China.The framework consists of three parts,including responsibilities,processes and policies.The responsibilities include research authorization,development of guidelines,and collection of information,at both national and local levels;the processes include four steps and an impact factor system to establish water quality standards;and the policies include seven specific proposals.