Economic Policy and Investment Strategy under Environmental Pressure: An Analytic Approach

This paper builds the analytic models for economic policy under environmental pressure. It can describe the impact of policy on economic growth. Also, the paper presents the policy models for investment to basic output and innovation, which can be applied to compute the optimal investment rates, and analyze the actual investment effects on economic growth. Further, the paper concludes that, open policies should be the leading one for the traditional industries; closed policies should be implemented at first for the small emerging Industries, which are promising in growth, and open policies are implemented at an opportune moment.