The Influence Of Environmental Regulation On Industrial Structure:The Path And An Empirical Study

In recent years,the economy in China has a rapid development,but at the same time,environmental problems are gradually deteriorated.With the extensive growth of the economy,resources are over-consumed,and pollutant accumulation increases.To prevent further deterioration of the environment and improve environment,the government has introduced a series of laws and regulations on environmental protection,and the intensity of environmental regulation has gradually increased.In 2016,the government proposed 12 binding clear objectives,in terms of air quality,surface water quality and soil environment.These aspects include that fine particles decreases 18%in below standard cities.Also,it requires surface water whose quality reaches or better than Class III water is greater than 70%.In 2017,to speed up the promotion of sewage permit system,the ministry of Environmental Protection,continuously issued some provisions on the administration of sewage permits,as well as thermal power,paper industry implementation details.At the same time,China is facing irrational industrial structure,which causes that it is an emergent problem on how to transform the industrial structure and how to solve it.On the one hand,environmental regulation has played a restrictive role in the development of industry.On the other hand,the industrial structure needs transformation and upgrading,so that the economy can be long-term stable development model.In the context of environmental protection and improved,it is essential that China’s economy grow steadily and sustainably through industrial upgrading.Therefore,how to reconcile the relationship between environment and economy,is now facing the urgent problem to be solved,so that we can achieve the construction of environment-friendly,resource-saving society.And how to clarify the effective transmission path and pattern of environmental regulation on industrial structure adjustment is the problem’s key.On the basis of previous literature and research,through theory analysis,the paper concludes that environment regulation can have a function on enterprise’s technology innovation,entrance behavior,industrial transfer,consumption demand and investment demand,so that it can indirectly affect the industrial structure adjustment on these pathes.At first,this paper uses analysis of data to describe China’s industrial structure in recent years,the status of environmental regulation and environmental improvement.Then using panel statistics from 30 provincial data from 2000 to 2015,it draws the conclusion.In the first part of this paper,under the reality,it arises questions,and elaborates the theoretical and practical significance of this study.In addition,it introduces the relevant basic concepts and summarizes the existing literature research ideas and research results.In the second part,it introduces the effects of environmental regulation system and environmental policy in China.At the same time,the paper analyzes the evolution trend of China’s industrial structure.In the third part,the theoretical analysis of the transmission path of industrial structure affecting environmental regulation is carried out.In this paper’s proposal,the environment regulation can play a role on enterprise’s technology innovation,entrance behavior,industrial transfer,consumption demand and investment demand,and in this way,it can indirectly affect the industrial structure adjustment on these pathes.Based on previous analysis,the paper arises hypothesis.In the fourth part,it builds a measurement model.Then,using data,it constructs the measurement formula to carry on the empirical test.Based on the panel data in China provinces,it analyzes on the influence of environmental regulation on industrial structure in the past 20 Years.In the fifth part,it gives policy proposals.From the perspective of industrial structure transformation mechanism,the theoretical analysis shows that the environmental regulation can effectively affect the transmission path of industrial structure.Using panel data of Chinese provinces from 2000 to 2015,This paper regresses the relationship between environmental regulation and enterprise’s technology innovation,entrance behavior,industrial transfer,consumption demand and investment demand respectively.Finally,with the relevant indicators of industrial structure,the paper regresses their relationship with entrance behavior,industrial transfer,consumption demand and investment demand on panel.Its result is that technological innovation,business entry,industrial transfer,consumer demand and investment demand of these five variables can significantly affect the industrial structure adjustment.At the same time,environmental regulation can significantly affect the four intermediate variables of technological innovation,enterprise entry,industrial transfer and investment demand,where the environmental regulation can significantly affect the industrial structure.However,environmental regulation cannot significantly affect the industrial structure through consumer awareness of environmental protection.