| The harmony between economic growth and environmental protection is the top concern in the world, and is also a task for the sustainable development in China. At present, Chinese government has always committed to promote the advancement of industry structure through various strong measures, aiming at break such constraints to the sustainable development as resources and environment. In addition, Chinese government has established the laws and regulations relate to environmental protection to control and resolve environment problems. In 2012, the report at 18 th Party Congress put forward two goals clearly including strategic adjustment of the economic structure and building “Beautiful China”, which means that economic structure adjustment and environmental protection has been institutionalized in national policies. In this paper, we are interested in whether or not the two goals above are compatible, and whether environmental regulation aiming to protecting the environment can update the industrial structure. This is the starting point and foothold of the paper.On the basis of the conclusion has been came to, this paper applies theoretical analyses and empirical test on the mechanism between environmental regulation and the advancement of industry structure. Firstly, according to theoretical analys, it’s believed that environmental regulation may affect the advancement of industry structure directly through industrial migration and indirectly through four transmitting mechanism including consumption demand, society investment, foreign direct investment and technological innvotation. Secondly, u sing the correlated data of 30 Chinese provinces during 2000-2012, this paper examines the mechanism between environmental regulation and advancement of industrial structure in China as well as the regional effect. The empirical results indicate that inverted "U" curve is existed between environmental regulation and advancement of industrial structure.In addtion, the advancement of industrial structure has been effectively promoted by the environmental regulation. Besides, under the influence of environmental regulation, several main factors contribute to advancement of industrial structure, including consumption demand and technological innovation. By contrast, society investment and international trade may hinder the process of advanced industrial structure. Furthermore, advancing urbanization is conducive to industrial structure advancement. Unfortunately, the economic openness degree and wage levels are not very effective tools for industrial structure advancement. At last, based on the research results above, some policy recommendations are put forward.(1) Increasing the strengths of environmental regulation properly according to local conditions.(2) Developing consumer industry and promoting the upgrading of the consumption structure.(3)Adjusting investment structure and rationally distributing industrial investment.(4)optimizing foreign direct investment environment and importing more capital, technology and talents.(5)Inducting the independent innovation of the enterprise through appropriate environmental regulation tools.(6)Confirming the city strategy layout in reason and accelerating the urbanization. |
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