China Measure The Intensity Of Environmental Regulation And Its Impact On The International Competitiveness Of Industry

At present, the majority of countries have strengthened environmental regulation, buta large gap still remains among countries. Whether or not intensity difference inenvironmental regulation has negative impact on international competitiveness havesparked extensive worries and researches, resulting in two completely opposite views,the ‘pollution of refuge’ hypothesis and the Porter Hypothesis. Besides the differencein short-term and long-term, the results difference partly owe to selection ofenvironmental regulation strength measurement. Existed indicators of environmentalregulation are flawed in terms of accuracy, consistency, exogenous. On the basis ofsummarizing, comparing and evaluating environmental regulation strengthmeasurement indicators in domestic and international empirical studies, by aid ofvirtual environmental cost method, this dissertation makes a distinction betweentraditional indicators of environmental regulation strength and indicator ofenvironmental regulation enforcement strength. In the perspective of the wholeindustry and sub-sectors, by aid of factor decomposition analysis, it was found thatthe traditional environmental regulation strength indicators cannot reflect the actualtrends of environmental regulation strength. The reason can largely be attributed toupgrading of Chinese industrial structure. The results show that the downward trendof Chinese traditional environmental regulation from2001to2010. Environmentalregulation enforcement strength indicator is a relatively better indicator tocharacterize Chinese increasing strength of environmental regulation. Besides, there issignificant difference in direction and extend of enforcement strength, environmentalefficiency and economic efficiency of energy.The industrial difference requires market-based tools when setting related policy.There have been adverse views of relationship between Environmental Regulationand the Industrial International Competitiveness. Based on comprehensive indexevaluation method to measure the International Industrial Competitiveness, by virtueof econometric analysis, this dissertation analyzes long-term Co-Integration andGranger Causality. Then establish a multiple linear model which containsenvironmental regulation enforcement strength as independent variables, industrialsize and industrial pollution density as control variables and internationalcompetitiveness as dependent variable. The regression analysis shows that ChineseEnvironmental Regulation doesn’t significantly impact on the InternationalCompetitiveness. Although there is long-term co-integration relationship, there is noGranger relationship. Therefore, there is still large potential improvement of ChineseIndustrial Environmental Regulation.