Research On The Affecting Mechanism Of Environmental Regulations On The Competitiveness Of Enterprises And Policy System

Since the1980s, environment issues were paid increasing attention by the global.The human began to realize the global ecological environment deterioration had theextreme influence on the quality of human life, and caused a serious threat to thesustainable development of the world. So, environmental organizations around theworld began to call human to strengthen protection of the environment, whileconsumers’ requests on environment-friendly products have become stricter. Forced bythe social presses from many aspects, companies have to take environmental strategies,strategic measures from the firm resistance to the negative response and then developinto a more positive self-restraint. However, with environmental laws and regulationspromulgated and implemented a debate about environmental regulation andcompetitiveness of enterprises has been caused. Whether the effect of environmentalregulations on the competitiveness of enterprises is negative or positive, thesecontroversies are not conclusive. So, this paper will study the competitiveness ofenterprises from the environmental point of view, and investigate how coordinateddevelopment between environmental regulation and competitiveness of enterprises,what conditions can achieve "win-win" state, then achieve environment and businesseconomic sustainable development.This paper’s main content as follows: first, it introduces the background ofcompanies Participate in competition; reviewed and summarized the research resultsabout the environmental regulation and competitiveness of enterprises, on this basisproposes the article’s main point. For the long-term development, the benefits ofenvironmental regulation to the enterprise are not an economic burden but a chance tocompete, which has a positive impact on the competitiveness of enterprises.Environmental regulation can help promote technological innovation, productdifferentiation and reduce product costs, thus enhance the competitiveness ofenterprises. Second, it analyses the mechanism of how the environmental regulationpolicies affect the competitiveness of enterprises. Different Environmental protectionpolicies are quite different in the implement results, implement efficiency and incentivesfor businesses, and the effects of environmental regulations on the competitiveness of enterprises are mainly reflected in the cost and technique, so the paper analyzed howenvironmental regulation affecting the competitiveness of enterprises from the salesprice generated by the cost and the product differentiation generated by thetechnological innovation. Finally, the paper conducts a comprehensive survey onChina’s current status of implementation of enterprise environmental protection policyand the reality conditions, and analyses the problems; assesses the current effectivenessof China’s enterprise environmental protection policy objectively, and indicates itsfailure causes, especially environmental protection policy system defects; makesuitable reform direction for China’s environmental protection policy, and build thecorresponding environmental protection policy system based on the previous theoreticalanalysis and research.