Analysis of affecting factors about Chinese environmental protection investment based on degree of grey incidence

Less than enough investment is the major obstacle to environmental protection in developing countries. Although China in recent years increasing gradually total investment of environmental protection, there exists large investment gap comparing with environmental problems which we are facing. According to the data of GDP, public finance expenditure in proportion of GDP, structure of public finance expenditure, the natural population growth rate and the rate of social environmental protection investment from 2002 to 2007, using degree of grey incidence analyzes the relationship between Chinese environmental protection investment with those index, we have depth understanding of Chinese environmental protection investment. The conclusion shows that GDP and public finance expenditure in proportion of GDP have higher degree of incidence with Chinese environmental protection investment. Therefore, this paper believes government is the major factor in environmental protection investment. Now, government should enhance environmental protection investment, carry out environmental investment priorities growth strategy in gross investment.