The Impact Of Environmental Regulation On Firm Productivity

In recent years, with worldwide environmental movement intensifying, governments increase investments in environmental pollution, meanwhile, they develop more strict environmental control standards. Moreover, the impacts of environmental policies on the productivities of enterprise attracted attentions of more scholars.This paper tentatively begin from micro enterprise level, and studies examines the mpact of environmental regulation on productivities of enterprise Firstly, from production costs, technological innovation, first mover advantage point of view, studies what mechanism environmental regulation will impact productivities of enterprise on the basis of a simple theoretical derivation. Secondly, We use 137 Shenzhen and Shanghai A-share listed company of heavily polluting firms as the study sample, combined with 2003-2012 panel data, and establish OLS, fixed effects, random effects models for empirical analysis. Then we added time lags in the model to improve the process.The results showed that 1) environmental regulation has positive impact on productivities of enterprise; 2) different types of environmental regulation have different effects on productivities of enterprise:Compared to economic regulation such as sewage charges, taxes, environmental control policy for output of enterprises have more obvious incentives. Thus, to a certain extent, results can validate "Porter Hypothesis" that environmental regulation can enhance the competitiveness of enterprises.