Mechanism Analysis Of The Environmental Regulation Impact On Green Growth

Since the industrial revolution,economic development caused by the global environmental degradation and other pollution problems pose severe challenges to human survival and development.In the past 30 years of high-speed economic development,China has formed a way of extensive economic development,which depended on low efficiency of high input in production and sacrifice excessive environmental quality.It not only has to face both resources shortage and environmental pollution the double threats,but also solve insufficient driving force for economic development.As a new way of growth,green growth stressed that while pursuing economic growth and development,it should ensure the sustainable use of natural resources and ecological environment.As a developing country,China’s green growth policy is a positive response to global climate change,and especially an inherent requirement for building a beautiful China and realizing sustainable development.In order to achieve a win-win green growth goal of environmental protection and economic development,China has introduced a number of environmental regulations.However,since the effect of environmental regulation on pollution control is not significant,the practice of green growth in China is slow.And under the compulsion and guidance of environmental regulation,the direction of technological research and development is not clear.The directed technological change selection problem that come along with it,is also the problem which green growth looks for new drivers.From the perspective of directed technological change,around the influence of environmental regulation on green growth,on the basis of green growth and relevant theories,this paper mainly discussed that how environmental regulation affect economic activities and social welfare through directed technological innovation.The two directions of directed technological innovation are respectively bias to production technology which can enhance the production factors efficiency and bias to emission reduction technology which can reduce pollution emissions and improve environmental quality.Based on growth theoretical models,integrated environmental quality and non-renewable resources as a factor,the green growth analysis framework has been constructed.It contains four modules,such as social welfare,economic activity,directed technological innovation and environmental regulation.According to the characters of different environmental regulations,the mechanisms of various environmental regulations impact on green growth are explained in depth.And the mathematical models had been calculated and analyzed.Summed up as the following four aspects:(1)Under the environmental regulation constraint,green growth theoretical model is constructed,embodied balanced,inclusive,and sustainable of the initial conditions and equilibrium conditions.In order to examine and quantify variables,parameters and their dynamic relationships,the related parameters and variables are the simulated and analyzed.The variables are part of four modules,such as social production,capital allocation,directed technological innovation and social welfare.The model results show that:Firstly,the climate feedback economic losses should not be underestimated.Secondly,under the guidance of green technological innovation tends to product,social production is powerful but there is a risk of environmental degradation.On condition that it tends to emission reduction,climate feedback economic losses are small but a risk of lack of growth momentum is existed.Although,long-term green growth can be achieved by both direction,neutral green technological innovation will be more stable.Finally,the rate of per-capita consumption will be improved significantly in the short term under the first guidance.(2)In order to maximize the social welfare as the goal,the model has been established to analyze the impact mechanism of government-support environmental regulation on green growth.In the process of capital accumulation,analying the influence of both the power of government support and environmental management cost on technological innovation revenue and capital allocation,the result shows that:although the brown capital achieves high productive elasticity,green capital is the critical support of economic growth;implementation of environmental regulations will direct investment to the green technological innovation arena,and the more intense of the regulations,the more green investment will be utilized;further green-tech innovation will facilitate more achievements of green growth.(3)On the premise of pollution control,the model has been established to analyze the impact mechanism of command-control environmental regulation on green growth.Qualified non-renewable resources,directed technological innovation,pollution emissions and environmental management cost,and reflected the dynamic relationships in the endogenous growth model,after solving the results of simulation analysis are:Firstly,the key dynamic element of green growth is technological innovation and the capital space of which should be adequate.Secondly,non-renewable resource is not necessary to drive green growth.Finally,environmental policies should be implemented to guide the carbon abatement technology rather than the production technology.(4)The model has been established to analyze the impact mechanism of market-guide environmental regulation on green growth.Through the positive environmental externality,the orientation of directed technological innovation is endogenous.And pollution tax emission reduction technological subsidies were imported to government budget spending restraint.The simulation analyed how the market-guide environmental regulation in influencing the direction of technological innovation to realize green growth.The model results show that:Maximization of social welfare is not equivalent to maximization of economic growth;Environmental tax is a new driving factor of economic growth rate,especially the tax rate is critical;The government should control the proportion of its lump-sum transfer payments to ensure adequate back-up capital to invest emission reduction technology and improve environmental quality.