The Impact Of Environmental Regulation On China Maunfacture's Total Factor Productivity

After China carried out reform and open policy, the economy made a considerable progress. However, the economic development is largely relying on high energy consumption in China. The extensive economic growth mode makes a growing contradiction between environment protection and industrial development,which is with low resource utilization and serious environmental damage. How to ensure economic growth while controlling environmental pollution has become an issue in need to be considered.Environmental regulation as an effective means of protecting the environment,it can alleviate the economic growth of the environmental pressure to some extent.But environmental regulation brought extra “compliance costs” would hinder economic growth?Or under certain conditions to achieve environmental protection and economic growth “win-win” effect. This paper needs to focus on resolving the problem.This paper makes an overview of the total amount of China's manufacturing economy, industry output and provided a brief overview of China's existing environmental regulation policies and regulation effects. Using nonparametric Malmquist index method, measuring the total factor productivity of 28 manufacturing industry in our country during 2001-2013, and break it down into technical efficiency and technical progress index. Adopting the method of linear standardized to construct a comprehensive measuring system and then to quantify the intensity of environmental regulation. Using the panel data build an econometric measuring the influence of environmental regulation to the 28 manufacturing industry and different industry grouping in our country. The findings of this dissertation are as follows.Firstly, China's manufacturing industry productivity is efficient on the whole; the index of technical progress is the main reason for the influence of total factor productivity. Secondly, environmental regulation promoting the manufacturing total factor productivity growth from. When seeing from different industries,environmental regulation has a significant role in promoting on heavy pollution industry, the result support the porter hypothesis; and it has a blocking effect on moderate pollution industries, the result does not support the porter hypothesis; Andthe result of lightly polluted industry was not significant.Basing on the above research conclusion, some targeted policy suggestions are putting forward, so as to provide a valuable reference to the implementation of China's manufacturing industry environmental regulation policy and economic development.