Relationship Analysis Of The Environmental Regulation And Economic Growth

Since the1970s of the last century, along with environmental pollution problem isincreasingly serious and the enhancement of the people environmental protectionconsciousness, the governments of the world to relax the economic regulation in largescale at the same time, strengthen the environmental regulation. The traditionalassumption, environmental regulation to improve environmental performance at the sametime, will bring negative effect to economy. From a national perspective, environmentalprotection and economic growth will fall into a dilemma that environmental regulationwill give the economic growth to bring negative effect, but" Potter hypothesis" proposedby Potter thinks the competitive advantage of the enterprise is not dependent on the staticefficiency and fixed under the constraint that the optimal action, but was dependent onthe variable constraints the improvement and innovation, based on the dynamic angle,appropriate environmental regulation in increasing cost at the same time, can give theenterprise the resource efficiency and potential technology improved signal, thusstimulates the regulated enterprises technological innovation," innovation compensation"effect, the effect can not only compensate for environmental regulation" compliancecost" the regulated enterprises, but also improve the productivity level, make its can thanuninfected regulation has the absolute competitive advantage of enterprises. Soenvironmental regulation to strengthen the impact on economic growth between the twohas after all how? What kind of relationship?Based on the panel data of2004-2009，China’s27provinces, using the econometricsmethod, to our country east, in the western region, the environmental regulation and theeconomic growth an empirical study on the relationship. The results show that, China’senvironmental regulation level and the concern that economy grows shows the obviousregional difference. In the eastern and central regions, environmental regulation and thelevel of economic growth are reciprocal causation relation, that is to say the environmentregulation level to a certain extent, promote the economic development. In the western region, environmental regulation and the level of economic growth are to replace arelation, improve the level of environmental regulation to some extent hinders economicdevelopment. It shall take the corresponding policies and measures to promote China, theregional environmental regulation and the economic growth of the benign interaction andcoordinated development.