Research On The Threshold Effect Of Pollution Abatement Affecting The Industrial Structure Adjustment

Since the policy of Reform and Open was carried out, China has achieved great success in economy, but also paid severe environmental costs. Because of the limitation of the stage of development and the low technological level, China’s economic growth relies heavily on the input of natural resource, which would produce and emit large amount of pollution. As a result, the contradiction between economic growth and environment has become more and more serious. As the situation of environment has become rigorous, the pressure to reduce the pollution emission has increased day by day. So China’s government concerned greatly with how to adjust the industrial structure, as well as the pattern of production, with the purpose of improving the environmental quality.How industrial structural adjustment which is one of the most effective measures to reduce pollution emission influents the pollution abatement has been analyzed deeply. However, more and more scholars have been aware that the relationship between industrial structural adjustment and pollution abatement is not simply unidirectional, but bidirectional. That is, pollution abatement could also promote the adjustment of industrial structure reversely. At present, few researches on this issue has appeared. At first, after reviewing the existing literature and classical theories about industrial structure and environmental economics, this paper tried to explain the mechanism of pollution abatement reversely impacting the adjustment of industrial structure. On macro-level, industrial structure adjustment means elimination of backward industries, appearance of emerging industries, and ratio changes of all kinds of industries; on micro-level, it means changes in corporate behavior. We first analyze how the standard of pollution abatement influence the changes in pattern of demand and supply the enterprise faces at, then the changes in corporate behavior. Then we will explain the way in which corporate behavior and pollution-abatement behavior influence industrial structure adjustment. Finally, we can establish pathways of pollution abatement promoting industrial structure adjustment.Based on the analysis of mechanism, we use cross-section data of China’s30provinces and establish a threshold regression model to proceed an empirical analysis. By sample splitting, we obtain3sub-samples. According to the results of the sub-samples’threshold regression, we throw light on the distinctive characteristics and differences of the3sub-samples for a further step. In the end, we provide our conclusion.