To make environmental issues externalities, Pigovian taxes and the Coase Theorem provides two different ideas: the former is totally dependent on government intervention, which rely entirely on market mechanisms.

Chemical pharmaceutical raw materials drug companies to develop, the environment must be protected. This contradiction is resolved, not just confined to narrow the scope of this sewage treatment, especially in China's regional disparities evident in the case, more often depends on environmental and economic trade-offs between cost: the latter is large enough to more than compensate for the former and the former will enter into a irreversible ecological damage.
 
But not most people agree "to environmental protection, medicine rather slow speed of economic development", which involves not only the pharmaceutical companies such as direct stakeholders, as well as a feature: the lower the income the more people who do not agree, The reason is that such a choice often means that the outward migration of bulk drug business, which led to lower employment rates, more direct economic interests are jeopardized, and so on.

We need to find a suitable deal with environmental issues of policy tools to urge pharmaceutical companies that market players in the development of their own at the same time, reasonable to assume the environmental costs. Taken by developed countries in this program usually have Pigovian taxes, emissions trading, command and control measures.

Pigovian tax is the prevention of damage to the environment for the business purpose of the most popular response, Resveratrol representatives from the Cambridge economist Pigou proposed school. In short, the pollution tax, through the collection of taxes, fees, environmental costs into the enterprise's internal costs, either direct taxes on pollution, it can be to reduce pollution in the conduct of subsidies. Tradable emission rights can be issued to manufacturers by the government, trade between firms can be certain the price, the government can also be sold at auction. Command and control measures is the practice of direct government control of pollution, emission standards can be set up factories, but also can ask the factory to achieve a certain technical standards.

At present, China's environmental protection measures implemented by the command and control-oriented collection of various fees, taxes, supplemented. These tax measures exist in scattered resource tax, consumption tax, value-added tax, Chia seed farmland use tax and other relevant provisions, the fees charged are more localized, China has no real sense of the environmental tax. Legislation on environmental taxes are also being actively discussed.

Pigovian taxes seemingly simple approach, while filling the developed countries benefit. In 1976, Germany developed the world's first collection of sewage tax law - "to discharge waste water tax law", then the United States, Docetaxel France and other countries to follow suit, the levy of taxes are also more and more noise tax, garbage tax, consumption tax or tax everything over feces. At the same time, effective environmental taxes has become increasingly evident, many developed countries thus achieving a fundamental improvement in the environment.
However, the idea of
​​Pigovian tax system, economists Coase suffered a challenge, because the establishment of a Pigovian tax premise that the government can fully measure the correct amount of pollution emitted, then the pharmaceutical manufacture of noise, Irinotecan emissions, waste so how to determine the accuracy of these marginal cost price? Coase argued that environmental problems in the final analysis is ill-defined property rights market, so to clear property rights, including ownership, use and development rights, the establishment of environmental property market. There is a simple example: Canada entered the winter, people waving dance shovel shovel, braved the cold to snow on the sidewalk in front of their own clean clean. Because if you do not shovel the snow off in time, cause to fall in front, we should bear legal responsibility. The logic is this: are occurring within your property you have the responsibility of all things.

Coase Pigovian tax or whether it is the means, are committed to the environment to determine the reasonable cost; difference is that environmental issues for the internalization of externalities, Pigovian taxes and the Coase Theorem provides two different ideas: the former is totally dependent on government intervention, The latter rely entirely on market mechanisms.

At present, China is more feasible approach is the premise of government involvement, Plant extracts mainly rely on market mechanisms to protect the environment. Pollution does not directly charged to the various costs, such as the object to be produced out of the transaction tax. For example, pharmaceutical pollution control, through subsidies to the recycling of all waste treatment, and the output of pharmaceutical products tax. Tax levy from the environment to emissions trading, to the environmental damage liability insurance system is established, through a series of effective incentive and restraint, by the pharmaceutical companies and other market players to eliminate the pollution problems created by their own, and government departments to do is effective regulation. Source:www.cospcn.com