Environmental Regulations For International Competitiveness On China's Industry

China's economic growthgets the world's attention,but the resulting environmental pressure pressure is increasingly prominent.When the economy enters a specific stage characterized by "the three-stage superimposed",the adjustment of economic structure and the change of development mode are faced with "throes period".The contradiction between environmental regulation and economic development are increasingly intensified.Environmental regulation will increase the production costs,which may make local governments lower regulatory standards for performance appraisal.On the other hand,due to environmental pollution accidents caused by a lot of economic losses,seriously affects the economy healthy.Therefore,the environmental regulation should not be underestimated.In the literature review section,this paper first reviews three effects of environmental regulation on the industry international competitiveness :(1)In the neoclassical theory,the environmental regulation increases the production cost and reduces the industry international competitiveness.The mechanism of production cost is summarized as "cost effects".(2)From a dynamic view,the environmental regulation will change the expectation of enterprise decisions,and improve the R&D expenditure and emission reduction to promote the international competitiveness of industries.It is named "innovation effects' '.(3)In areas with strong environmental regulations,it may cause production transferred.This is ‘pollution haven effects'.Then this paper reviews the research progress on heterogeneity and spatial correlation.Based on the information asymmetry and differences of enterprise pollution two aspects,this paper discusses the influence of the environmental regulation.In the complete information and the homogeneous enterprise model,we find that environmental regulation will increase production costs through ‘cost effect',and will adversely affect the enterprise production in the short term;at the same time,it will cause the enterprise migrate to regions with weak environmental regulation,there will be a negative effect through the ‘pollution haven effects'.However,environmental regulation will promote R&D expenditure.In the long term view,it will enhance the international competitiveness through "innovation effect ".In incomplete information model,regulation cost for enterprise production has a strong role,it will carry out scientific and technological innovation.And companies will seek looser environment tax policy areas in order to reduce the production cost,and there will be "Pollution haven effect".In the empirical analysis,this paper uses the spatial measurement model and provincial panel data from the regional level to test above conclusions.The impact of environmental regulation on the industry international competitiveness is analyzed from different levels of environmental regulation intensity index and different spatial weight matrix on national level and regional level.The empirical results show that the effect of environmental regulation on the international competitiveness of industries is different when the government implements different environmental policy instruments under different economic levels,such as "cost effect","pollution shelter effect" and "innovation effect".According to the results of theoretical analysis and empirical test,this paper argues that the government should pay attention to the different policy implementation effect and the regional economic differences in the process of implementing the environmental regulation policy.While adjusting the industrial structure,the government should actively guide the transformation of scientific and technological achievements of the manufacturing industry into production investment.