A Research On The Three Marginal Effects Of Environmental Regulation On Export Trade

The effect of environmental regulation on export trade has been paid more and more attention by economists.The existing results mainly focus on the macroeconomic impact of environmental regulation on the total export volume.There are few studies on the three marginal effects of environmental regulation on export trade from a micro perspective.Based on the new-new trade theory,this paper analyzes the extensive margin quantity margin and price margin of export trade from the product level,and gives an empirical analysis of three marginal effects of environmental regulation on export trade.This paper is divided into six chapters.In the first chapter,the author puts forward the research ideas.The second chapter summarizes the domestic and foreign research results from two aspects:the trade effect of environmental regulation and the margin of export trade.The third chapter explains the marginal impact of environmental regulation on export trade.The fourth chapter analyzes the status of environmental regulation and export trade.The fifth chapter analyzes the three marginal effects of environmental regulation on export trade.The last chapter makes a conclusion according to the theory and the empirical analysis,and puts forward the corresponding policy suggestion.In the theoretical part,the author uses HMR model to analyze how environmental regulation influences the margins of trade on the basis of enterprise’s behavior.On the logic of economics,environmental regulation comes from the environmental externality and its primary role is to internalize environmental costs so that private costs are in line with social costs.We can find that the rise of enterprise production cost caused by the internalization of environmental cost will affect the trade margin by influencing enterprise behavior.From a static standpoint,an increase in the marginal cost of production will,on the one hand,lead to a reduction production and export,on the other hand improve the export threshold and reduce the extensive margin.From a dynamic point of view,environmental regulation will encourage enterprises to innovate.Enterprises through technological innovation can improve productivity and thus reduce production costs and export threshold,which help to improve the extensive margin and quantity margin of export.Through product innovation can improve product quality and expand profit margins,thereby contribute to price margin.In the empirical part,drawing on the methods of Hummels and Klenow(2005),decompose China’s export into three aspects:extensive margin,quantity margin and price margin.The comprehensive utilization rate of solid wastes,weighted by 32 industries in 2001-2014,was selected as a measure of environmental regulation.The average size,R&D density,capital density and labor productivity of the industry were taken as the control variables.And the regression results show that the increase of environmental regulation can restrain the quantity margin obviously,but promote the extensive margin and the price margin.In addition,the three marginal effects of environmental regulation showed significant industry differences.Environmental regulation has a positive impact on the extensive margin and price margin of low-pollution industries,but has only a positive impact on the price margin of high-polluting industries.Generally speaking,the strengthening of environmental regulation maybe sacrifice the quantity of exports,but more is to encourage enterprises to focus on improving products quality and developing new products,which is conducive to the optimization of export trade structure.Based on the research conclusion,this paper puts forward some policy suggestions from the aspects of environmental regulation and the sustainable development of export trade.While enriching environmental regulation and improving environmental regulation policies,efforts should be made to encourage enterprises innovation,improve intellectual property rights protection and promote the development of environment-friendly industry.