The Impact Of Environmental Regulation On Industry Transfer

Focusing on the incremental change of industry transfer, this paper applies Poisson Model to investigate the impact of environmental regulation on the location of new manufacturing establishments at city-level in China. The results show that the level of environmental regulation is significant and negatively influences the probability of new firm location.The more loosely regulated the city is, the more new manufacturing establishments are in that city.,which provides the evidence of Pollution Haven Effect.Furthermore, based on regional comparative study, the paper shows that the environmental regulation has negative effect on new firm birth in Eastern region, but in Central and Western region. The results discover that the evidence of Pollution Haven Effect in Chinese pollution industry transfer shows an incremental mode.