Institutional Arrangement of China's Green New Deal

After the financial crisis, many countries are vigorously developing the green economy in order to improve the social welfare. China's green economy is characterized by an early start and larger scale, but the low level of technology. Because of the alienation of the incentive targets, some social resources are distorted or mismatched. Therefore, China's institutional arrangements should gradually shift from the control mode of the planned economy to a governance model of market economy and establish market-oriented incentives with the ultimate goal of improving the net social welfare, bringing into play the late-development advantages.