environmentally sound manner Despite a wide range of environmental laws and regulations, enforcement at provincial and municipal levels is weak, although there is increasing evidence of a tougher approach toward environmental problems in the more affluent coastal provinces. The lack of infomation sharing has led local governments to misinterpret regulations. Moreover, institutional obstacles within the government and legal system created an unequal distribution of information on laws, regulations, and enforcement mechanisms Without knowledge and information of environmental laws and regulations, local governments could hardly implement the regulations effectively In spite of progress on reducing pollutants and wastes in several fronts, the overall nvironmental quality has continued to degrade over the past decade. Even thought the control technology and knowledge are available to address the most serious issues of media-specific and point sources of pollution, governmental policy and strategies have been too conservative and fragmental in making progress Furthermore, environmentally harmful products and services have been neglected in environmental protection programs.This is because such pollution probl evolve multiple governmental agencies and various industries without clearly identified the responsibility of each organization to deal with pollution from environmental harmful products and services. As a result, the gap between what has been done and what is needed to protect environmental quality is WIdening Environmental issues in recent years, particularly those concerned about toxic chemicals and azardous wastes from industrial processes, are receiving more attention in policy, program and media dimensions worldwide pollution from toxic chemicals and hazardous wastes is more extensive and difficult to manage than originally believed When toxic chemicals and hazardous wastes contaminate the environment all to the potential high risks. To add to the problem, significant amounts of toxic pollutants are cycling and recycling in the environment not only from industrial sources, but also from urban transportation, industrial waste treatment and disposal facilities, and activities of the general public Chinas increasing market orientation requires a strategy for future environmental protection that need to go beyond the command-and-control measures of the past Its 21st century economic policy with respect to environment is being challenged in three doctrines 1. Adjusting the market to work for the environment, not against it. This means recognizing that China, with its limited resource base, is under-pricing energy and water. Prices of natural gas and water, for example, should be raised to reflect their scarcity. It means that the government nould expand the use of taxes pollution to incorporate its enormous social costs. Environmental taxes on coal and gasoline and on pollutants would use the market to clean 2. Harnessing growth for the environment by pursuing investments with the highest environmental benefits for future generations Better pricing makes investments in preventive technology economic and imposes environmental discipline on firms. Pricing energy correctly would create incentives for firms to invest in more efficient technology and abatement Public investments in research and development, urban public transits and wastewater systems, financed through increased cost recovery and better pricing, are crucial for conserving natural resources and for preventing environmental pollution and health risksenvironmentally sound manner. Despite a wide range of environmental laws and regulations,enforcement at provincial and municipal levels is weak,although there is increasing evidence of a tougher approach toward environmental problems in the more affluent coastal provinces. The lack of information sharing has led local governments to misinterpret laws and regulations.Moreover,institutional obstacles within the government and legal system have also created an unequal distribution of information on laws,regulations,and enforcement mechanisms. Without knowledge and information of environmental laws and regulations,local governments could hardly implement the regulations effectively. In spite of progress on reducing pollutants and wastes in several fronts,the overall environmental quality has continued to degrade over the past decade.Even thought the control technology and knowledge are available to address the most serious issues of media-specific and point sources of pollution,governmental policy and strategies have been too conservative and fragmental in making progress. Furthermore,environmentally harmful products and services have been neglected in environmental protection programs.This is because such pollution problems involve multiple governmental agencies and various industries without clearly identified the responsibility of each organization to deal with pollution from environmental harmful products and services.As a result,the gap between what has been done and what is needed to protect environmental quality is widening. Environmental issues in recent years,particularly those concerned about toxic chemicals and hazardous wastes from industrial processes,are receiving more attention in policy,program and media dimensions worldwide.Pollution from toxic chemicals and hazardous wastes is more extensive and difficult to manage than originally believed. When toxic chemicals and hazardous wastes contaminate the environment,all life is exposed to the potential high risks.To add to the problem,significant amounts of toxic pollutants are cycling and recycling in the environment not only from industrial sources,but also from urban transportation,industrial waste treatment and disposal facilities,and activities of the general public. China’s increasing market orientation requires a strategy for future environmental protection that need to go beyond the command-and-control measures of the past.Its 21st century economic policy with respect to environment is being challenged in three doctrines: 1.Adjusting the market to work for the environment,not against it.This means recognizing that China,with its limited resource base,is under-pricing energy and water.Prices of natural gas and water,for example,should be raised to reflect their scarcity.It means that the government should expand the use of taxes on pollution to incorporate its enormous social costs.Environmental taxes on coal and gasoline and on pollutants would use the market to clean the environment. 2.Harnessing growth for the environment by pursuing investments with the highest environmental benefits for future generations.Better pricing makes investments in preventive technology economic and imposes environmental discipline on firms.Pricing energy correctly would create incentives for firms to invest in more efficient technology and abatement. Public investments in research and development,urban public transits and wastewater systems,financed through increased cost recovery and better pricing,are crucial for conserving natural resources and for preventing environmental pollution and health risks