The Effects of Economic Policy Instruments of Diffuse Water Pollution from Agriculture: A Comparative Analysis of China and the UK

The world is facing the challenge of increasing grain production and improving the environment, in which the treatment of diffuse water pollution from agriculture (DWP) is the important content. Traditional administrative means are still unable to solve the problem of market failure and government failure in DWP. economic policy instruments (EPIs) have more advantages in improving market economic, reducing the cost of environmental governance and supervision. They have become an important tool to solve DWP and promote the transformation of water pollution prevention and control management. This paper puts forward suggestions and countermeasures on improving China's policy and EPI system by systematically sorting out and analyzing the EPIs of DWP control in China and UK. China needs to further focus on the three principles and comprehensively use 11 policy tools to stimulate and constrain DWP control in the whole agricultural production process. In particular, the government should establish cooperative prevention mechanisms with farmers. At the same time, China should reform its supervision system, strengthen relevant legislative work, to lay a foundation for the sustainable development of water rights trading, emissions trading, and environmental liability insurance