Analysis Of The Impact Of Environmental Regulation On Technological Innovation

With the further acceleration in the process of the reformation and the openingup to the outside, the productivity and technology is developing rapidly, in themeanwhile,the people’s living standards have been greatly improved. But theenvironment of our Country has gone from bad to worse, including “fog and haze”inBeijing,Tianjin, Hebei. The long term drought in Yunnan,all of that has remind usthat solving the environment is imminent now. The establishment of the internationalgreen barriers and the holding of the Copenhagen conference also shows that allgovernments has attached importance to the environment, and China is no exception.China has improved the intensity of the environmental regulation and increased thelaw enforcement of the environmental regulation, meanwhile has expanded thestaffing of the environmental supervision.But all of this reaches the unrealistic resultin improving the environmental situation.China is a vast Country,but meanwhile is aextremely unbalanced developing Country,the regulation of environment in Chinashould not be a simple unity, in the contrast, the different intensity and the differenttype of the regulation should be applied to the different regions.The paper reviews the process of environmental regulation, In the20thofChina,the environmental regulation is based on the order type,but right now themarket type is a major type.Secondly,the paper is analyzed from the static anddynamic section, which specify the command type and the market type whichinfluence the technology innovation,followed by the analysis of the positive andnegative effects of the regulation of the market environment for technologyinnovation. And then we can find that using regulation can produce much lesspollution emissions compared to not using regulating under mathematical models;then we analyze the market environmental regulation and the commandenvironmental regulation when they both have impact on the enterprise market shareand pollution emissions, we find that applying to the market environmentalregulation make the emprise occupy a higher market share, we also find that higheconomical regions own the higher technological innovation than the low economicalregions. Then, we select the statistics of the rice and noodles from1998to2011of31provinces to make empirical analysis on the relationship between the marketregulation and the technological innovation. We can find from the regression results:in the current period, the market environmental regulation has restrained the local technological innovation in some degrees, but in the lag three terms of theenvironmental regulation has done good to the different regional technological effects,among that,the eastern region is particularly evident,the central region is much lessevident,and the western region is not evident at all. So, our Country should take intoaccount the specific circumstances of different regions, to formulate the targetedpolicies, so as to ensure high efficiency of environmental regulation in the variousregions, and the overall cost is very low.