Management & Engineering Developing Circular Economy in the Ecological Economic Region

Management & Engineering 07 (2012) 1838-5745
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Management & Engineering
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The Research on the Paths and Choices of Strategies About
Developing Circular Economy in the Ecological Economic Region
of Poyang Lake
Shubin ZHU1，2，, Rongrong ZHAO1
1. Economic and Trade Academic Institution of Jiangxi Agricultural University, Jiangxi 330045, P.R.China
2. ‘SHAN RONG’ Issues Research Center of Jiangxi Agricultural University, Jiangxi 330045, P.R.China
KEYWORDS
ABSTRACT
Circular economy,
Green ecology industrialization,
Industrial development ecology,
The EERPYL,
Sustainable development
Developing circular economy greatly is an inevitable choice in order to further use
advantages of ecological resources and advantages of location of the Ecological Economic
Region of Poyang Lake (EERPYL) and improve the competitiveness of the EERPYL, and to
narrow the gap with the eastern coastal areas quickly and realize the sustainable development
in the regional and economical society. Therefore, the paper puts forward the specific paths
and political recommendations of green zoology industrialization and industrial development
ecology of EERPYL as national strategy background.
© ST. PLUM-BLOSSOM PRESS PTY LTD
1 Introduction
On December 12, 2009, the State Council authorized The Planning of the Ecological Economic Region of Poyang Lake (EERPYL)
formally. It shows the EERPYL rising as national strategy background. On January 31, 2010, Jiangxi Provincial Party Secretary Su
Rong emphasized that grasping practically the essence of the ERPYL is premise and basis of promoting the construction of the
EERPYL in the mobilization meeting of developing the EERPYL. The characteristic of the EERPYL is ecological and its core is
developing. Changing development mode is crucial. Its goal is to embark on a specific developing and green rising roads. Therefore,
we should develop circular economy greatly. In order to further use ‘advantages of ecological resources’ and ‘advantages of location’
of the EERPYL and improve the competitiveness of the EERPYL, and to narrow the gap with the eastern coastal areas quickly and
realize the sustainable development in the regional and economical society, developing circular economy greatly and building the
green EERPYL is an inevitable choice. For this issue, some domestic scholars did some relational study. The task force from
Academy of Social Science of Jiangxi province (2008) put forwards the guiding ideology, basic ideas and building goals, etc of the
construction of the EERPYL. Cai Shaohong (2010), etc studied the economic and social development problems in the
underdeveloped regions of western China and made some relational recommendations. Cao Xiaolin (2010), etc analyzed the barriers
of developing the circular economy of the less developed areas from Chongqing province. Then she put forward the corresponding
proposals about strategic choices.

Corresponding author.
E-mail address: [email protected]
English edition copyright © ST. PLUM-BLOSSOM PRESS PTY LTD
DOI: 10.5503/J. ME.2012.07.016
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2 Major Problems of the Development of Circular Economy in the Ecological
Economic Region of Poyang Lake
In recent years, the economy of the EERPYL is in the stage of rapid development, and it relies mainly on resources and labor and
capital investment to promote economic growth. But high investment is not sustainable that it will be a serious threat to the
sustainability of the economic development of Poyang Lake and Poyang Lake ecological sustainability. Although the EERPYL rose
to national development strategies, but the EERPYL is still faced with many problems which are to be solved in the development of
circular economy and becoming a strategic green Poyang Lake.
(1) The EERPYL will face a financial bottleneck in the development of circular economy. Implementation of circular economy
requires a lot of capital investment, and needs capital accumulation under the economic development to a certain degree or borrows
external funds to invest. In the situation that traditional economic model has not been fully or mostly exited, carrying out the circular
economy is hard to execute because short-term economic benefits and economic strength in the economically backward regions is not
enough and quality of personnel is too low and so on. Then, it will cause the financial bottleneck of developing circular economy. In
the end of 2010, the domestic and foreign currency deposits of Jiangxi financial institutions added up to 1.19078 trillion Yuan. It
only accounted for only 1.6% of the domestic and foreign currency deposits of the whole country, much lower than the level that
Jiangxi's population accounted for 3.3% of the country's total population and obviously much lower than the level that Jiangxi’s GDP
accounted for 2.3% of the whole country’s GDP. It showed that the level of credit funds in the province was below the national
average level. This is a reflection of financial bottleneck. Here attached 2010 GDP Rankings of the Whole Country’s Provinces and
Cities, as shown in Table 1.
Table 1 2010 GDP rankings of the mainly country’s provinces and cities in China
Rank
Province
Rank
Province
Rank
Province
Rank
Province
Rank
Province
1
Guangdong
7
Liaoning
13
Beijing
19
Jiangxi
25
Xinjiang
2
Jiangsu
8
Sicuan
14
Anhui
20
Tianjing
26
Guizhou
3
Shandong
9
Shanghai
15
Neimenggu
21
Shanxi
4
Zhejiang
10
Hunan
16
Shanxi
22
Jilin
5
Henan
11
Hubei
17
Heilongjiang
23
Chongqing
6
Hebei
12
Fujian
18
Guangxi
24
Yunnan
Resource: CHINA Statistical Yearbook, 2010, China Statistics Press
(2) The EERPYL’s industrial clustering is not enough. It is difficult to meet the development of circular economy which needs
support from the economies of scale. Economies of scale are important conditions for development of ecological industry. Whether it
is circular economy's ‘small cycles’ model - efficient internal recycling of resources, or ‘in the loop’ mode - recycling of resources
between enterprises, or ‘big loop’-to establish a recycling society from the perspective of viewing society as a whole cycle model, all
will be conducive to the implementation of circular economy development model under the economies of scale, and recently, the
scale of the industrial parks in the EERPYL is too small. Its features are not obvious and industrial structures are identical. There are
some other problems, and these problems will restrict seriously development of regional recycling economy. Digital research showed
that many county industrial clusters have only 10 or so companies. These clusters can not be compared with Zhejiang and other
places. Statistics indicated that in 1999 there were more than 5000 shoe enterprises in Wenzhou and their output value is 25 billion. It
is equal to 140% of the total number of all the joint venture of industrial park in Jiangxi in 2003 and 42.54% of their sales. This
shows that the enterprises in the ecological economic zone gather inadequate.
(3) The absence of institutional arrangements leads to the shortage of policies to support the development of circular economy.
Compared with that the development of circular economy needs for relevant policy mechanisms, the EERPYL is not perfect in terms
of the policy mechanism for the development of circular economy. Market’s externality benefits of circular economy are difficult to
be compensated from the market itself, specific programs of policy support have not yet introduced, every subject’s motivation in the
development of circular economy is inconsistent, and their interest is also inconsistent, and then result that it is hard to consort the
interest among macro and micro body, so the development of circular economy lacks the mechanism of interest. The absence of
institutional arrangements leads development competition among various industrial parks in the EERPYL to disorder.
(4) Public participation is consciousness and agricultural pollution is serious, directly weakens social mass base of the development
of circular economy in the EERPYL. On a statistical sample of 187 households, nitrogen, phosphorus and potassium application
proportion of farmers after calculation of pure discount was 1:0.53:0.58. However, nitrogen, phosphorus and potassium absorption
ratio of grain was 1:0.45:1. The proportions of household fertilization are clearly not reasonable. In addition, straw rate is only 63%.
Therefore, the development of circular economy and the formation of the green EERPYL depended on the great efforts of the
government and the active participation of the public. Otherwise, circular economy which is lack of public foundation is difficult to
achieve. The development in the core area of the EERPYL is relatively backward, and smooth information network of circular
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economy is absent. This is likely to cause that the public lack of knowledge on the significance of the development of circular
economy and the construction of the EERPYL. Their consumer savings and green environmental protection is awareness, and sense
of participation is so much thin. At the same time, the EERPYL lacks of Non-governmental environmental organizations, and
‘recycling economy and green’ is closely related to each person's interests and of behavior. Relying solely on the government's
promotion is difficult to achieve the desired effect.
3 The Development Path's Choices of Circular Economy in the Eco-economic
Region of Poyang Lake
Ecological advantages of the EERPYL highlights in the water resources, ecological agriculture, green food, tourism, shipping and
open economy and so on. Therefore, the ideas of development that develop greatly circular economy of the EERPYL and build green
the EERPYL not only meet the regional situation of the EERPYL, but also meet the situation in the province of Jiangxi province.
Poyang Lake ecological economic zone's ecological resources and locations which have comparative advantages are easier to play.
3.1 Develop circular ecological agriculture
Based on strict protection of cultivated land, we will solve scientifically the EERPYL's ‘SHAN RONG’ issues by the promotion of
agricultural industrialization, urbanization and industrialization. Poyang Lake Ecological Economic Zone can choose such as cycle
selection modes of ecological agriculture development: tourism agriculture and urban agriculture; red eco-tourism model; green
eco-tourism model; farm family-type circulation patterns (such as: pigs - biogas - fruit model); Eco-agriculture park mode
(trade-Engineering-Agriculture Integrated Ecological Park); forestry, animal husbandry complex ecological engineering and so on.
Development of efficient circular ecological agriculture needs to establish a concept of eco-industrial, industrial ecology and strive to
create cycling ecological agriculture industrial system of the EERPYL, and to promote the construction of the efficient ecological
agriculture demonstration zones with the Poyang Lake ecological economic zone.
3.2 Develop circular eco-industry
The main comparative advantages of Poyang Lake ecological economic zone are the beautiful environment and ecosystems, the
industrial development of the Poyang Lake ecological economic zone bases on the protection of ecological environment and the
optimization of the ecological environment firstly, and those are the fundaments that regional enterprises improve the sustainable
competitiveness. Thus, in the long run, the key of the industrialization of Poyang Lake ecological economic zone is to develop
circular eco-industry. Alternative strategies are: to strengthen the construction of the eco-industrial parks (pre-pilot can be paid
attention to 1-2); traditional enterprises to adopt eco-cluster-style development integration model; great selection of clean production
mode and so on.
3.3 Develop cycling ecological services
The development of service industry is important that it guarantees the development of circular eco-agriculture and eco-industry.
Service industry of the EERPYL should focus on the development of circular economy. Alternative strategies are: the major cities as
the center to develop ecological logistics industry; construct ecological information services; to develop eco-tourism and develop
circular education industry with particular attention to practical technical education and training and commercial recycling and
processing mode and so on.
4 Conclusion
Developing circular economy and building green the EERPYL should adhere to regard the scientific outlook on development as
guidance, to optimize the patterns of using resources as the core, and to regard increasing resource productivity and reducing waste
emissions as targets, to regard technology innovation and system innovation as the driving force, then take effective measures to
mobilize the forces and promote them actively. Those problems in the economic and social developments of the EERPYL need to be
urgently addressed.
(1) Promote the new concept of developing circular economy to the whole society. Compared with the traditional ‘linear economy’,
circular economy is a new model of economic development. It is related to public behavior, interests, and activities closely, and need
for understanding and support of public. Therefore, to organize a variety of publicity and education activities, to improve the whole
society, especially leaders at all levels of the cognition about the development of circular economy and the importance and urgency
of building a green eco-Jiangxi, to lay a profound public base for the EERPYL in the implementation of this new model of economic
development.
(2) Develop eco-industrial model, and do a good job of the industrial layout in the EERPYL. Jiangxi province is in a very important
stage of development. Industrialization and urbanization are accelerating, and it further increases its demand for resources. If you do
not change effectively the mode of economic growth and the status of a large number of consumption of resources, development's
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opportunities may be lost, and it will lead to economic wandering. Therefore, to do a good job of the industrial layout in the EERPYL,
to avoid the duplication caused by the waste of resources from the source. At the same time, to develop greatly the patterns of
circular economy of resource production and consumption, control strictly the waste production from the source of production and
consumption, form a perfect mechanism for waste recycling mechanism and avoiding waste generation.
(3) Build legal protection system of the development of circular economy. To study how to establish a blameless legal system of
circular economy, now we should pay close attention to formulate Resources Comprehensive Utilization Ordinance, Waste Electrical
and Electronic Products Recycling Regulations, Waste Tire Recycling Regulations, Packaging Recycling Management and so the
development of circular economy-specific legislation. Accelerate development of energy-using equipment efficiency standards, water
industry standards for key water quotas, energy-saving design of the main energy-consuming industries, and mandatory energy
efficiency labeling and re-use of products such as the identity standards of the development of circular economy. Strengthen law
enforcement supervision and inspection, and gradually make the task of the development of circular economy step into the legal
system.
(4) Construct the political support system of the development of circular economy. To give some major projects in the EERPYL
support of loan discount and direct investment or capital grants. Guide all kinds of financial institutions such as give loans to key
projects which help to promote the development of circular economy. Combine the investment system, adjust and implement
investment policies. Increase financial support for the development of circular economy, further deepen the price reform, study and
implement the policy prices and charges which promote the development of circular economy development. To sound fiscal policy
and increase the favorable intensity of the development of circular economy, then continue to deepen reform of enterprises, and study
to develop a kind of economic policy which will help the enterprises to establish eco-industrial network that meets the requirements
of circular economy.
(5) Build technical support system for the development of circular economy. The EERPYL should accelerate the pace of the high
technology and advanced applicable technologies to transform traditional industries, to backward techniques, technologies and
equipment. The resource conservation and alternative technologies which have universal significance should be organized to develop
and demonstrate, technology that extend the industrial chain and related industries links, ‘zero emissions’ technology, technologies
that alternative toxic and hazardous materials, recycling and processing technology, green re-manufacturing technologies, etc which
have universal significance should be organized to develop and demonstrate. Then work hard to make breakthroughs in the
development of circular economy technological bottlenecks.
(6) Construct the support system of the development of circular economy. The scientific development concept guides the overall
situation, the concept and the taking of circular economy are guidance, to accelerate the economic restructuring of our province and
transform economic growth mode, and then can provide strong economic support for the development of circular economy in the
EERPYL. Therefore, the EERPYL develop greatly high-tech industry and tertiary industry which is low power, low emissions, to
foster tourism which is eco-tourism-based into new pillar industries of the area. To limit strictly the blind development of industrial
parks and the industries which have high energy consumption, high water consumption, high pollution and waste of resources with
the circular economy concept to guide regional development, industrial transformation, and to promote reasonable adjustments of
regional industrial layout. Industrial park's planning, construction and renovation should obey the mode of circular economy, and
then fully use the effects of industrial agglomeration and industrial ecology. Develop related industries around the core resources and
formation industry chain of recycling of resources.
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