Study On Environmental Regulation And Industrial Performance Based On Industry Heterogeneity

With environmental pollution problems becoming increasingly serious, localgovernments have stepped up the intensity of environmental regulation to solve theproblem of environmental pollution through using all kinds of regulatory policyinstruments. Shandong Province also take a series of measures. Environmental regulationpolicies, Although environmental regulation policies are able to control pollution andprotect the environment, they also inevitably increase the costs of company’s production,and affect directly industry performance. In addition, environmental regulation canpromote technological innovation, and increase productivity caused by technologicalinnovation to some extent, which requires the combined effects of the overall analysis.Today, there are many environmental regulation policies, but most of them are " onesize fits all " policies, that lead to uncoordinated development of various industries andimpact the overall development. Based on this case, first, it outlines the results ofprevious studies about environmental regulations, verifying whether it exists EKC inShandong. Second, based on the study of industry heterogeneity, there is a furtherresearch on the impact of environmental regulation and empirical analysis on theperformance of the manufacturing industry. Specifically, the30manufacturing industriesare classified as heavy, moderately and mild polluted industries, according to the degreeof severity of environmental pollution and using environment-related data from2003to2012. We can establish statistical panel econometric models. The results show that thecombined effects of environmental regulation on industry performance is positive, andheavy polluted industries is stronger than others, the strength of its environmentalregulation on industry performance is greatest. Therefore, considering appropriateenvironmental regulation means, we can have a positive impact on industry performance.In order to play the role of environmental regulations better, we must deal with thedifferent environmental regulations strength in different industries, which make the roleof environmental regulations in promoting the industry performance can play fully.