The Effect Of Environmental Regulation On Green Investment Of Enterprises

In the past 40 years,China’s economy has been growing rapidly,but behind the economic growth,there was also the rapid consumption of resources and environmental degradation.The country put forward the 13 th five-year plan outlined to adhere to the development of green,and take effort to improve the ecological environment.Therefore,environmental regulation is the first choice and necessary tool for government to control the environment.In recent years,the country has actively introduced policies to strengthen the governance and protection of the ecological environment,and successively promulgated laws and regulations such as Environmental Protection Law and Environmental Tax Law.Then,the effect of the current environmental regulation means triggered the thinking of this paper.This paper will conduct research from the perspective of heavy polluting enterprises,the main body of policy implementation,to explore the impact of environmental regulation on green investment of heavy polluting enterprises.This paper reviews and sorts out the previous research achievements.Then,the theoretical basis related to the research of this paper and the research framework and research hypothesis are put forward on the basis of previous studies.In the end,the effects of the three environmental regulations on green investment of enterprises are discussed in general,and further classified studies are made from the perspectives of enterprise nature and market environment.In this paper,in order to study the proposed hypothesis,the listed companies in China’s heavy pollution industry from 2008 to 2017 are selected as samples,and the environmental regulations were divided into formal environmental regulations and informal environmental regulations.Among them,formal environmental regulation is divided into market-incentive and command-and-control environmental regulation,and the public’s environmental awareness represents informal environmental regulation.Through theoretical analysis and empirical analysis,the following conclusions are drawn: Market-incentive environmental regulation and informal environmental regulation have significant positive effects on enterprises’ green investment;Command-and-control environmental regulation and enterprise green investment have a positive impact but not significantly;For further distinguish the nature of property rights,state-owned enterprises and heavy polluting enterprises with foreign investment,the environmental regulation can better promote their green investment.Under the classification of marketization process,market incentive environmental regulation can promote green investment of enterprises with weak marketization process in their region,while informal environmentalregulation can promote green investment of enterprises with strong marketization process in their region.Based on this research,the countermeasures and suggestion are put forward from the government,enterprises and the public: when the government encourages enterprises to invest green,it should give priority to market-incentive-environmental regulation,supplemented by command-and-control environmental regulation;Enterprises need to establish the direction of green transformation;Citizens should strengthen their awareness of environmental protection and actively complain to the relevant government about the pollution of enterprises.