The Effect Of Environmental Regulation On Industrial Green TFP Analysis

In recent years, our country’s economy obtained fast development, but with the rapid economic development, environmental problems and energy consumption problem has become worse and worse. Especially in Shanxi Province which is on the basis of coal resources, coordinating development of environment and economy become strong resistance for the sustainable development of economy. Total factor productivity is on behalf of the rest which the capital and labor inputs are all deducted in economic growth, and represents the quality of the contribution to economic development. However green total factor productivity take pollution as unexpected output on the basis of measuring the total factor productivity, and then put it into total factor productivity estimation system. Therefore, how to improve the green total factor productivity and enhance the connotation of industrial economy in Shanxi Province qualitative is the key for of industry in Shanxi Province to realize green transformation and sustainable development.In this paper, on the basis of existed research, using the latest analysis tools of GML index to measure of industry of Shanxi Province green total factor productivity, the results show that VRS assumptions, on the whole industry in Shanxi Province in 2005-2014 GTFP increases by 1.92%, and the efficiency improvement index fell by 0.54%, and technological progress index rose 2.48%.Technological progress is the main factor to promote the growth of green total factor productivity, and green total factor productivity growth of low energy consumption industry in Shanxi Province is generally greater than the medium energy industries’.Secondly, this article use a few aspects like the overall industry in Shanxi Province, high energy-consuming industries, medium energy industries and low energy industry to make regression analysis respectively, the influence of environmental regulation on industrial green total factors.Regression results show that environmental regulation is negatively related to the green total factor productivity of overall industry and high energy-consuming industries in Shanxi Province, and the relationship about environmental regulation and the green total factor productivity of medium energy industry and low energy industry shows U. In addition, this paper selected representative indicators from direct effect and indirect effect for concrete analysis the influence of environmental regulation. In direct effect, the increase of R&D spending will promote the green total factor productivity of the overall industry and low energy industry rising in Shanxi Province, but the R&D input is not significant for high energy-consuming industries and medium energy industry in the effect. Besides, the green total factor productivity is directly proportional to pollution control investment,and inversely proportional to the cost.In indirect effect, the green total factor productivity about the whole industry of Shanxi and high energy-consuming industries and industrial structure adjustment effect environmental regulation of under is inversely proportional to the current and lag, and the green total factor productivity of medium and low energy industry is inversely proportional to its current period, and proportional to the lag period. The green total factor productivity of Shanxi industrial overall and low energy industry is inversely proportional to the current period of industry competitiveness effect under environmental regulation, proportional to the lag period. Industry competitiveness effect under environmental regulation is not very significant to the green total factor productivity of high energy-consuming industries, but its current and lag period is inversely proportional to medium energy industry.