Potter Hypothesis Of Clean Production Regulation And Its Dynamic Influence

The environmental issues have become a hot topic once again, got the national leaders’s attention, and become the focus of the conference for discussion during the Chinese two sessions in 2015. China has experienced a period of nearly 30 years of rapid economic development, with an annual GDP of around 10%, it’s an economic miracle in the history of mankind. However, with the economic development achievements, environmental pollution problems become prominent, we can say, the achievements of China’s economic development was at the expense of destroying. the environment. The fog and haze Shrouding from north to south, poisoning incidents caused by water pollution and collective violences caused by PX projects and so on, they remind us the seriousness of today’s environmental problems.The environmental regulation is imperative, environmental regulation methods contain the end of treatment and the cleaner production. The end of the treatment only focus on the final emission of pollutants generally, paying no attention to the control and prevention of pollutants generated during the manufacturing process.The cleaner production has more advantages than the end of treatment, it can prevent the generation of pollutants in the manufacturing process, improve resource utilization and reduce emissions of harmful substances, some studies have shown that the cleaner production has more advantages than the end of the treatment. Recent years, the Chinese government are increasingly aware of the importance of the clean production, the ministry of environmental protection and other departments issued a series of the industrial cleaner production standards, these industries cleaner production standards can be seen as the cleaner production standards regulation, within the scope of environmental regulation. Clean production standards regulation is an important policy constrained by pressure on energy conservation while its impact on industrial competitiveness can not be ignored.However, the environmental regulation to industry is a double edged sword, the direct effects of environmental regulation is a burden on companies, in order to meet regulatory requirements, it is necessary to pay additional expenses for pollution control, thus reducing the competitiveness of companies,thus have an impact on business TFP. The purpose of this paper is to observe the environmental regulation on Industrial TFP had a positive effect or a negative effect in an empirical way, in order to make specific the environmental regulation, this paper will research the impact of cleaner production standard to industral TFP. In this paper, the implementation of cleaner production standards is viewed as a quasi-natural experiment, then difference in difference approach has been introduced to analyze impacts of the implementation of clean production standard on TFP, while propensity score matching is employed to deal with the problem of common support.The paper has studied the impact of clean production standards regulation on TFP from perspective of regulatory implementation process, and dynamic marginal impact has been focused. This paper will research the difference of the impact between regions respectively.In this paper, empirical studies have found a direct impact of the cleaner production standards regulation on TFP industry is negative, but its dynamic marginal effect increases with the implementation of standards. The crowding-out effect of clean production standard regulations show us a one-off feature. while the marginal effect of the cumulative learning effect show us a robust J-feature, resulting in about 3 years over the crowding-out effect.The explanation is that the period of the implementation of standards is short, the direct effect that we can observe is a negative effect, but its marginal effect gradually increased over time, indicating that the clean production standards will be a positive effect in the long-term.We find that the marginal impact of dynamic regulation in different regions is in the same general trend, but the turning point of the regulatory impact is different. Findings from further analysis found that, the marginal effect of the eastern has been subject to bottleneck for TFP growth thus resulted in the latest turning point, while the western reach turning point fastest. What the late stage of marginal effect shows us that, the Central has a more strong cumulative learning effect and exceed the Western eventually due to potential TFP growth and comprehensive economic strength.Therefore, to improving government subsidies,reinforce cleaner production assessment and optimize environmental regulation policy,and further implementation differentiated regulation policy etc. are important measures to achieve targets both of TFP improvement and energy conservation.