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of rights and responsibilities among investors in the environmental 2.2
protection sector, and further improvement is needed. The rights
and responsibilities division among investors in the low carbon
development and environmental protection areas must follow the
principle of fairness, justice, and efficiency, and delineate the scope of
rights and responsibilities between the government on one side and the
enterprises and individuals on the other side and between the central
government on one side and the local governments at various levels on
the other side. Wang (2012) further suggests a way to divide the rights
and responsibilities between the Central and local governments in the
low carbon investment field.
The division of rights and responsibilities between the central and
local governments must follow the principles of benefit, efficiency,
and of matching the investment rights and responsibilities of the
governments at various levels with their corresponding financial
strengths. According to these principles, we must reasonably
divide the rights and responsibilities between the central and local
governments as well as among the provincial, municipal, county,
and township governments. This means, firstly, according to the
principle of benefit, we must have the central government undertake
the rights and responsibilities with respect to the investment in low
carbon growth and environmental protection areas across regions
that would generate cross-regional benefits. It must also have a
bearing on national economic and social development and ensure
that the local governments undertake the rights and responsibilities
with respect to the regional or local investment in the low carbon
growth or environmental protection areas which generates regional
or provincial benefits and have a bearing on the local economic and
social development. Secondly, according to the principle of efficiency,
we must allow the government, which is most efficient in making the
low carbon and environmental protection investment, undertake the
rights and responsibilities with respect to such investments. From the
practice of China, we find that the Central government is more efficient
in undertaking major cross-regional or cross-territorial low carbon or
environmental protection projects, while the local governments are
more efficient in undertaking regional low carbon or environmental
protection investment activities. Moreover, the current practice shows
that, with respect to the low carbon or environmental protection
investment which are undertaken jointly by the Central and local
governments and which benefit the regions concerned and the country
at the same time, the Central government shall delegate the investment
Chapter 2 Innovative Financing for Low Carbon Development 95
protection sector, and further improvement is needed. The rights
and responsibilities division among investors in the low carbon
development and environmental protection areas must follow the
principle of fairness, justice, and efficiency, and delineate the scope of
rights and responsibilities between the government on one side and the
enterprises and individuals on the other side and between the central
government on one side and the local governments at various levels on
the other side. Wang (2012) further suggests a way to divide the rights
and responsibilities between the Central and local governments in the
low carbon investment field.
The division of rights and responsibilities between the central and
local governments must follow the principles of benefit, efficiency,
and of matching the investment rights and responsibilities of the
governments at various levels with their corresponding financial
strengths. According to these principles, we must reasonably
divide the rights and responsibilities between the central and local
governments as well as among the provincial, municipal, county,
and township governments. This means, firstly, according to the
principle of benefit, we must have the central government undertake
the rights and responsibilities with respect to the investment in low
carbon growth and environmental protection areas across regions
that would generate cross-regional benefits. It must also have a
bearing on national economic and social development and ensure
that the local governments undertake the rights and responsibilities
with respect to the regional or local investment in the low carbon
growth or environmental protection areas which generates regional
or provincial benefits and have a bearing on the local economic and
social development. Secondly, according to the principle of efficiency,
we must allow the government, which is most efficient in making the
low carbon and environmental protection investment, undertake the
rights and responsibilities with respect to such investments. From the
practice of China, we find that the Central government is more efficient
in undertaking major cross-regional or cross-territorial low carbon or
environmental protection projects, while the local governments are
more efficient in undertaking regional low carbon or environmental
protection investment activities. Moreover, the current practice shows
that, with respect to the low carbon or environmental protection
investment which are undertaken jointly by the Central and local
governments and which benefit the regions concerned and the country
at the same time, the Central government shall delegate the investment
Chapter 2 Innovative Financing for Low Carbon Development 95
