Empirical Study on Internalization of Environmental Costs of China's Export Trade

From the perspective of cost-effective,environmental costs have a negative impact on China's export trade,while it has a positive impact from the perspective of innovation.To view in a comprehensive way,environmental costs will ultimately promote China's export trade as the positive effects produced by innovation can offset the negative ones that cost makes.Since the internalization of environmental costs will facilitate the realization of a win-win situation as environment protected and export increased,China should strengthen the implementation of the internalization policy,including the raise of environmental standards,reform of natural resource prices and revise of sewage charging policies and so on.In order to implement internalization of environmental costs,China should use both economic instruments and policy control and gradually focus on economic means in the long run.