The social construction and the behavior of organization transform continuously, and the relative prices keep changing. When the relative prices changing will cause the negotiating power of the organization to change and further affects institutional evolution? "The Remedial Institution of Soil and Groundwater Pollution¡¨ had passed through successively institutional evolution during 10 years, how does the pollutant and interest group affect the institutional evolution. Through Douglass C. North¡¦s view of the institutional evolution, I collected many different Taiwanese articles of evolvement policy and rules of soil and groundwater pollution to understand the relationship between the lawmaking of "The remedial institution of soil and groundwater pollution" and the organization of behavior. Besides that, using ¡§The Remedial Fee of Soil and Groundwater Pollution," the subsidiary bill of ¡§The Remedial Institution of Soil and Groundwater Pollution" as a case study. Deeply understand the North¡¦s Theories of institutional evolution in formal rule, informal rule and enforce characteristic and their relationship. According to the analysis of the interaction between institutions and organizations, it explained that the formal rule, The Remedial Institution of Soil and Groundwater Pollution, cause it 10 years for revising. Under such structure of the institutions, the network of the administration, legislative agency and different ideology, had affected the actors who take the action regulate the transaction costs and caused new arrangement of the institution to generate stable and slow changes. It proves that our notion of the behavior of organizations exists transaction cost and has interacted effect on the construction of institutional evolution to be right, and also proves that under North's theory of institutional evolution, provided a good explanation for "The Remedial Institution of Soil and Groundwater Pollution¡¨ can't quickly revise in Taiwan¡¦s current institutions. At the same time, this statement has enhanced the explanation capability of the theories toward the environment policies of Taiwan.

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