Research On The Impaction Of Our Country’s Environmental Regulations On Industrial Competitiveness

The research of industrial competitiveness and environmental protection is a relatively newfield in economic circles. Strengthening environmental regulation represents the general trend ofthe contemporary world. Meanwhile, industrial competitiveness is the crucial question in acquiringand consolidating the competitive advantage to every country of the competitive system. Acombination of both is well worth studying.In the theoretical part, with the two regions in China as the object of study the article describesthe impact mechanism of the environmental regulation on industrial competitiveness and therelationship between them in detail from the perspective of the difference between marine industryof Qingdao and that of Ningbo. Taking a specific industry----marine industry as an example, thearticle tells that every industry has its own characteristics and that the difference of industrialstructure is the primary cause of the difference of the impact of environmental regulations on thisindustry within the same industry. Furthermore, the article develops Porter’s theory of "diamondmodel", and considers that in today’s society of claiming to environmental protection, as one ofexpression of government action which is an additive factor, environmental regulations can bepromoted to the fifth major factor that affects industrial competitiveness. Especially to the countriesor regions where environmental regulations play a huge active role, the environmental regulations’meaning is more important.In the empirical part, the article combines the background of China’s environmentalregulations and explores the research methods and evaluation systems about the related industry’scompetitiveness. And taking marine industry of Qingdao and that of Ningbo as examples, thearticle adopt correlational analysis method to study the relationship between environment input andindustrial output with presenting the strength of environmental regulations by investment inenvironmental protection of the two cities over the years in1995-2009, and the competitiveness ofmarine industry by the total output of marine industry, and then studies the positive and negativeimpact of China’s environmental regulations on the industrial competitiveness of different regionsand the difference of the degree of the impact. The empirical results show that at present the positive effects of environmental regulation inpartial cities in our country has begun to appear and the degree of the effects is different. Both theenvironmental regulation and competitiveness of marine industry of the two cities have a clearpositive relation, which is closely related to the permanent openness of economies of the two cities.Environmental optimization and technological innovation which are positive effects that are takenby environmental regulation can play a role in the market and are remedy for the negative effectsthat be taken by increasing environmental cost. The degree of these positive effects of the twocities is different, which has a lot to do with the internal structure of marine industry of the twocities. The second industry takes a larger proportion of marine economy of Ningbo. There existstrong industrial relevance effects among manufacturing industry of ships, marine oil and gasindustry etc. which belongs to the second industry of marine industry and can drive thedevelopment of related industry. In addition, the second industry is on intimate terms withenvironment. The more controls on environmental contamination, the higher industrialcompetitiveness that can acquire.