Research On The Impact Of Environmental Regulation On The Quality Of China’s Economic Development

After environmental protection has been incorporated into the focus of national construction and development,green development has also been elevated to the level of national development strategy and has become a common form of high-quality development in China,Therefore,clarifying the relationship between environmental regulation and economic development has become a realistic topic facing China in the new era.This paper combines the dual identities of individual enterprises as the micro-subject of economic development and the object of environmental regulation,and constructs a feedback mechanism of "financing constraints-capital allocation" that environmental regulation affects the quality of economic development from the perspective of capital circulation.On this basis,the environmental regulation data of China’s prefecture-level cities and manually collected data of listed companies are used for empirical tests.The research found:(1)On the whole,the level of environmental regulation in China showed a gradual upward trend from 2007 to 2017;In terms of regional level,on the basis of the gradual strengthening of environmental regulation level in various prefecture-level cities,the gap between horizontal regions in environmental regulation is also narrowing.(2)Environmental regulation has two ways to inhibit and promote the quality of economic development.On the one hand,environmental regulation will have a negative impact on the quality of economic development by increasing the financing constraints of the capital absorption link.On the other hand,it will optimize the capital allocation efficiency of the capital application link and promote the quality of economic development.Therefore,the comprehensive impact of environmental regulation on the quality of economic development depends on the comparison between the two mechanisms.(3)At present,the capital allocation effect of China’s environmental regulation is greater than the financing constraint effect,which has a significant promoting effect on high-quality economic development in general.After using the air flow coefficient as the tool variable,replacing the core variable,adjusting the control variable and changing the estimation method,the result is still stable.the positive effect of environmental regulation on high-quality economic development is more obvious in high-efficiency listed companies.The positive impact of environmental regulation on high-quality economic development will vary with different regulation types,regions,industries and enterprises.