Empirical Study Of Environmental Policy Impact On Industrial Environmental Efficiency

With the growing of China’s industrial economy, the conflict between economic growth and environmental protection is becoming increasingly acute.The "public goods" nature of Environmental resources and the "negative externalities" feature of environmental pollution requires government environmental regulations. Sustainable development requires environmental efficiency continued improve, so how to promote environmental policy to improve environmental efficiency effectively is becoming a rich theoretical and practical significance work.Firstly, this paper analyzes the main reason for the government to conduct environmental regulation, and using the endogenous growth theory, the author analyzes the transmission mechanism and the conduction path which environmental policy affect on environmental efficiency from the point of the three core elements of endogenous growth theory including physical capital, technological progress and human capital, which laid a theoretical foundation for the empirical analysis.Secondly, adopting the input-output method and the Green GDP accounting method, the article estimates the direct costs and the integrated costs of pollution of China’s 16 industrial sectors in 2001-2012 of industrial waste water, waste gas and solid waste, and then calculates the direct environmental efficiency and overall environmental efficiency of industrial waste water, waste gas and solid waste on this basis. Through comparative analysis, we find that the integrated pollution control costs have a large increase compared with direct pollution control costs considering the pollution control costs included the output and input products in inter-industry, especially for the industry which use high-polluting industries products as the main intermediate inputs. So we identify the "pseudo-clean" industries and provides a theoretical foundation for pollution emissions management in demand side. Meanwhile, the integrated environmental efficiency of various industries decrease by 40-50% compared to the direct environmental efficiency, which mean that the environment efficiency calculated by the conventional method is been overestimated.Thirdly, We establish VAR model with physical capital, technology capital, human capital and industrial environmental efficiency, with before and after adding environmental policy variables, and use impulse response function and variance decomposition to analysis the impact which the impact of physical capital investment, technology capital investment and human capital investment effect on industrial environmental efficiency with before and after adding environmental policy variables. So we can judge the effectiveness that the executive order type environmental policy, the market incentive environmental policy and the public participation environmental policy promote various industries environmental efficiency of wastewater, waste gas and solid waste. The results show that three types of environmental policy have different effects on industries environmental efficiency with the different accumulation paths of production factors; due to differences in industries characteristics, three types of environmental policy have different effects on industries environmental efficiency with the same accumulation paths of production factors; because of the presence of characteristic differences between pollutants, three types of environmental policy have different effects on industries environmental efficiency with the same accumulation paths of production factors and the same industry.Finally, this article summarizes the content and put forward the corresponding policy recommendations to improve the effectiveness that environmental policy effect on industrial environmental efficiency.