An Empirical Analysis Of The Impact Of China's Environmental Regulation Intensity On The Upgrading Of Industrial Structure

The deterioration ofenvironment and the exhaustion of resources are all revealing China' s economy is experiencing a painful period of development,environmental problems have become more serious.Even though laws and regulations issued by the government to control environmental pollution made our legal systems more perfect,theenvironmental pollution problems remain unsolved.How to maintain rapid economic growth while protecting our environment is a serious topic,our government are actively advocating constructing a sustainable society which is resource conservation and environmental-friendly,strict environmental regulations have also been introduced by the government.Environment regulation is acting on the micro-enterprise individuals,at the same time,our country's industrial structure is experiencing great changes.Can environmental regulation affect industrial structure?What is the mechanism of action?These are the key issues of this paper.Firstly,the paper made an analysis and summary of previous researches,introducing the conception of environmental regulation and describing the necessity of environmental regulation with chart.The mechanism of environmental regulation on industrial structure is combed.Then this article used the provincial panel data from 2006 to 2015to test the effect of environmental regulation on industrial structure,the effect has been empirically tested by two regression methods(normal panel regression and threshold panel regression).Based on the test result,I gave the corresponding conclusion and meaning.Normal panel regression model showed environmental regulation,technology innovation and upgrading of consumer demands are all conducive to industrial upgrading,they are all significant at 5%level.Total social fixed asset investment and foreign direct investment are all harmful to industrial structure upgrading.The total social fixed assets investment's impacts on industrial structure is not significant,foreign direct investment is significant at 10%level.Based on the threshold regression test,the environmental regulation has a two-stage effect on industrial structure upgrading respectively,"weak regulation" and "strong regulation",the intensified of environmental regulation strength is harmful to the upgrading of industrial structure based on "weak regulation" and it is significant at 1%level.Intensified environmental regulation based on "strong regulation" will do benefit to the industrial structure,the level is also significant.To some extent,we should combine the reality and can't blindly improve the intensity of environmental regulation.Technology innovation and upgrading of consumer demands are still conducive to industrial upgrading,and the significance level are all below 1%.FDI still do harm to industrial structure,but it is not significant,it showed that China does have a "pollution haven" effect.The total social fixed assets investment' s impacts on industrial structure arenegative both at the threshold panel model compared and the normal panel model,but it isn't significant,so the practical meaning is limited.According to the results of empirical test,several suggestions were put forward:(1)The incentive restraint mechanism related to the subject of environmental regulation should be adjusted.(2)Perfect the information flow mechanism and promote the information disclosure.(3)Enhance the environmental law enforcement by proper degree.(4)Encourage multi-variety investment,disperse environmental protection input.