The Influence Study On The Effort Of Environmental Regulation And Industrial Performance

As a worldwide problem, environmental pollution has caused wide publicconcern, and environmental protection has become a global consensus. In developedcountries, they protect the environment at the same time take trade restrictions whichresist the low production cost due to low environmental standards national commodityto protect domestic companies, and form a technical barrier. China has always beenthe extensive economic growth mode, that high energy consumption and highpollution enterprises make Chinese environmental problem is getting worse. Theenhancement of environmental awareness, the requirements of technical barrier andthe deterioration of environmental problems, environmental regulation has becomeChinese inevitable choice.Traditional neoclassical economics agree that environmental regulation willinevitably lead to higher business costs and reduce the industry performance."PorterHypothesis" challenges this viewpoint, and thought that environmental regulationimproves enterprise cost at the same time may promote the enterprise innovation, andfinally may improve industrial performance. For environmental regulation, theexisting research from the perspective of national or regional study "porterhypothesis" is realized or not. The research from the perspective of industry is less,and rarely combined with the foreign direct investment of industry and technologyinnovation. This is a major defect. This study combines "Porter Hypothesis" with"Pollution Haven Hypothesis", and based on the method of influence mechanism toanalyze the relationship among environmental regulation, foreign direct investment,technological innovation and industrial performance. This study establishes differenteconometric models of variables, uses panel data from2001to2011of34industriesin China, and empirical study the relationship of environmental regulation andindustrial performance. The following basic conclusion:(1) Environmental regulationhinder foreign direct investment, which to a certain extent, live up to the "PollutionHaven Hypothesis", however as time goes on, the environmental regulation intensitydecline the impact of foreign direct investment.(2) Foreign direct investment hinder the technology innovation, however lagged terms has failed to pass the test ofsignificance.(3) The direct effect of environmental regulation on technical innovationand comprehensive effect have a promoting effect. From the angle of time, we foundthat environmental regulation impact on the technological innovation directly and thecomprehensive influence is inverted "U" type, and the impact first increases thendecreases.(4) Technology innovation promotes industrial performance, and in thecurrent, the promoting effect is most obvious. As time goes on, the promoting effectweakened gradually.(5) The direct and comprehensive effect of environmentalregulation on industrial performance has effect of inhibition. However, thecomprehensive effect is less than the direct effect, which means that environmentalregulation improves the industry performance, but the indirect effect is not obvious,so environmental regulation still hinder the improvement of industrial performance.This research according to the research conclusion, and combining with thecharacteristics of Chinese current development, put forward the followingSuggestions:(1) We shall choose the foreign direct investment of low pollution andhigh technical content, so that environmental regulation will not restrict the entry offoreign direct investment, and foreign direct investment can promote the domesticenterprises to carry out technological innovation, to improve industrial performance.(2) The increasing intensity of environmental regulation. Environmental regulationalthough has certain negative effect on industry performance, but it also can promotethe improvement of technology, which offset the negative influence of environmentalregulation on industrial performance. Thus the increasing intensity of environmentalregulation improve the degree of incentive regulation on technological innovation,increase innovation compensation effect, compensate for the negative impact ofenvironmental regulation on industrial performance in a larger extent.