The Mechanism And Empirical Study About The Effect Of Environmental Regulations On Environmental Efficiency In China

Since China started to carry out the Reform and Opening, the total economy of China has achieved a rapid growth.But because of the lack of environmental protection,the more serious environmental pollution has emerged, the carrying capacity of the environment has decreased, and the pressure of environmental management also has gradually increased. In order to change the existing situation of environment and improve the environmental quality,the government began to gradually strengthen the environmental controls. While the environmental regulation will increase the cost of firms, and the resource allocation and changes of productivity will have an impact on the environment, so the environmental efficiency could be influented.This paper attempt to study about the relationship between environmental regulation and environmental efficiency and describe what the real impact of the environmental regulation.The paper uses the environment pollution and quality data of the 30 Chinese provinces in 2000-2012 to calculate the intensity of environmental regulation and environmental efficiency. And the paper analyzes the effects of the cost, pollution transfer, technological innovation, economic structure which are the mechanisms of environmental regulation.Then the paper frames a econometric model to carry out the empirical analysis by using the panel stata. According to the results, we will obtained out the conclusion that the environmental regulations could improve the environmental efficiency getting better. Futher, on the one hand, the increase of the intensity of environmental regulation which is the cost of controlling the environmental pollution will be good at the environmental efficiency. And so dose the efficiency of government. On the other hand, the relationship between the property and environmental efficiency shows as inverted “U”. It means if the property goes beyond the certain limit, it will have negative effects on environmental efficiency. So only by increasing the economic cost and improving the system of institution,could the environmental efficiency make progress.