Local Government, Polluting Enterprise and Environmental Pollution: Based on MATLAB Software

The important issues of China’s environmental pollution and its internal reasons have been explored by means of the software MATLAB which has been widely applied to the economics fields due to its powerful mathematical and graphical functions. The impact of local government’s behavior on environmental pollution has been evaluated and, an empirical analysis based on China’s 30 provincial data from 1997 to 2009 has been given. The results show that, stimulated by decentralization reform, the local government tends to form close relationship with enterprise aiming at speeding up the economic growth as well as taking environmental protection as a secondary objective. While economic factors cannot be used to explain all the pollution problems completely, the behavior of local government plays important roles on environmental pollution. The investigation suggests that the reformation of the current political system and the adjustment of the distorted incentive mechanism are the two effective approaches of solving China’s environmental pollution problems.