Pollution-intensive Industries In China Foreign Trade Effects Of Environmental Regulation Perspective

Based on the environmental economics theory and regulating economic theory, this paper utilized the official statistical data and the input-output analysis technique to analyze the pollution state of Chinese pollution-intensive industry, which providing background for discussing the effect of environmental regulation on China's trade of pollution-intensive industrial.Due to the different selection of the environmental regulation index, if we use the pollutant or investment of environmental protection as the environmental regulation intensity, it will make the results less explain and lack of comparability. Constructing the environmental regulation intensity index system, we get the value from 1994 to 2009 by utilizing the Super Decision to deal with the questionnaires, and assigning weight with AHP.Constructing the effect model of environmental regulation on China's trade of pollution-intensive industrial, combined with the environmental regulation intensity, we discussed the change of trade welfare, trade composition and trade competition: Firstly, the trade welfare effect model of import and export countries from the perspective of environmental regulation reveals the different welfare effects of producers and consumers in import and export countries. The econometric result shows that environment regulations have a negative corelation with the export volum, and the export also has a negative impact on the environmental regulation. Once the environmental regulation strength rises 1%, the export share of the pollution-intensive industrial reduces 3.34%.Secondly, the trade structure effect model from the perspective of environmental regulation shows that with the development of environmental regulation,high pollution-inensive industry will consistently replaced by low pollution-intensive industry such as the green industry for the reason that environment protection and strandards are further improved. The econometric result shows that environment regulations have a positive corelation with the trade structure. Once the environmental regulation strength rises 1%, the export propotion of captial and technology intensive products in the total pollution-intensive industry will rise 0.086%, the effect is weak but remarkable.Thirdly, the trade competion model of the environmental regulation reveals that the factors will flow to low pollution-intensive industry from high pollution-inensive industry after the implementation of environment; The implementation of strictly environmental regulation will bring a decrease to competitive advantage of the importer country. The econometric result shows that environment regulations have a weak corelation with the trade competion.