Price analysis on environment production factor

Since the concept of environment production factor proposed, it has been widely concerned. However, it is lacking for the study on its supply, demand curve and price setting model. Several questions have been discussed in this paper. First, we analyze the supply curve without considering reserved self-using. Second, according to its concept and characteristics, we get its “vertical ladle” supply curve in practice. Finally, combine the demand curve of environment production factor; we get its equilibrium price under condition of perfect competition.