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System, as rules of social running and social structural mechanisms, are the foremost issues under the market conditions. National Economics advocates that ,from the system researching the most important socio-economic factors and institutional systems so as to reveal in the economic society of human relationships, how did it happen? Why is it happening? How does it change? And what is the best condition for these relationships? Thereby making the most reasonable arrangement for economic activities .
Institutional Economists believe that people are first and foremost, "social", and, "organized", in nature, and only then, "economic", in nature, as any individual acts under the norm of some kind of system , and under the environment of some kind of culture, as well as within the framework of some sort organization.If the whole operating system of a society is good, then the individual will react well to the new systems, cultures and organizations.
A good circle of force and reaction force, constitutes a whole operating system, within a society
A society of low-carbon economy mode is different to an environment from the previous industrial society. These differences are not just a few more inventions, but also less gasoline is needed for cars as BMW`s are replaced by bicycles. This example shows the phenomena manifesting in a simple form. The difference is the change of the whole social environment, from the inside to the outside, from the top to the bottom. First is the change of system, for if the system doesn't make substantial adjustment, then the surface change of form will be only temporary and unstable. As advocated by the system economic theory, the economic behaviour of the individual, depends upon the system environment, organizational environment and cultural environment .
China's institutions and systems comply with a low-carbon economy mode, with at least the following aspects of the reform:
1, in resource allocation
Based on the fact that a low-carbon economy principle enforces a low-power, high-yield, and non-pollution status, thus requiring from the limited social resources, the new allocation of resources, producing this following principle, whereby there should be national arrangements, and these must be of a systematic, comprehensive, and consistent nature. This should be expressed firstly: the products in the low-carbon model should be encouraged by capital, markets, tax etc., which will require the introduction of the law encouraging new energy products and low-carbon products and secondly; there is a need for the introduction of a law to support low-carbon products so as to gain marketplace status, as well as a need of national standards of certification upon low-carbon products.
2、 the competitive advantages of low-carbon products
By encouraging companies to create low-carbon products, we should aid these companies by giving them a more competitive advantage, by obtaining more of a market share for them, rather than the high-carbon products .This requires the introduction of a law supporting low-carbon enterprises as given priority access to banks and financial institutions, as well as a need to receive a priority of issuing stock and bonds in the capital market; also there is a need to get them more opportunities of international cooperation, overseas M&A and policy support and so on.
3、 within the government administrative licensing approvals
The Government should change its role and attitude so as to provide diligence service for low-carbon businesses. If the government's position changes from the regulator of the tower to the attendant on the ground, then the companies will be saved a lot of annoying things, and a lot of costs. Based upon this, "Administrative Licensing Law", and the corresponding regulation of approval that are appropriate with the establishment of, "service-oriented government", there may be a need to make further adjustments to improve the operating efficiency of the whole society and save social costs.
4, in the low-carbon management model innovation and technological innovation
China urgently needs the introduction of a law which can encourage enterprise management mode innovation and technological innovation. Working upon the basis of absorbing universal norms of low-carbon legal systems in developed countries, with the introduction of a complete and operable legal system which can guide the shift towards a low-carbon society .
Giving up stubborn, conservative, rigid, one-sided way of thinking and cultural patterns, to my Government, and the public, is not a small challenge, the General Assembly in Copenhagen, NetEase launched, "What is the road of environmental protection with Chinese characteristics", forum, but also still focused on the, "Chinese characteristics", these forums, taken part in by these stars, and entertainment celebrities, although the effect can play a show, but unfortunately, these are just a formality, and does not have much value toward a low-carbon society.
Creating a new society needs the power of rational intelligence and the power of the system.
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