Research on the operation model of environmental value chain based on transaction cost theory

Many countries have made and implemented more and more environmental protection laws and regulations, and the consumer's environmental consciousness is also becoming stronger. In this situation, corporation must re-build its own environmental value chain (EVC) to achieve competitive excellence. By taking the environmental influence into consideration, EVC conquered the imitation of the traditional value chain, and integrated the economical value and ecological value into value analysis. EVC is becoming a much more important organization of environmental governance because its advantage in incentive mechanism, saving information cost and governance cost. However the establishment and operation of EVC is affected by many factors. Based on transaction cost theory, the paper gives a systematic research on the organizational mode, driver, and driving manner of EVC. It indicates that transaction cost have important influence on the organization and operation of EVC, and then affects the performance of EVC. The results of the paper also have important inspiration for public department to make environmental governance policies.